Comtech (CMTL) signs agreement with the Commonwealth of Massachusetts – May 23, 2024

Comtec Telecommunications (CMTL Free Report) recently won a major contract for Massachusetts’ Next Generation 911 (NG911) system.

Under the terms, the contract will have an initial life of five years from August 1, 2024 to July 31, 2029, with an additional option to extend it for another five-year period until July 31, 2034. The value Total contract (including additional extension option) is likely to exceed $250 million.

CMTL has partnered with the state of Massachusetts since 2014 for the proper operation of the IP-based NG911 system. The Comtech NG911 system helps meet the state’s emergency communications needs by processing urgent service requests from existing public networks through various communication modes and devices.

The Commonwealth of Massachusetts’ approval of the contract underscores the state’s unwavering confidence in CMTL to ensure secure public communication, CMTL added.

Headquartered in Huntington, New York, CMTL is a leading global provider of terrestrial and wireless networking solutions, along with next-generation 911 emergency services. It also offers space and satellite communications technologies and cloud-native capabilities to commercial and government customers. It has expanded its presence in multiple market domains, from broadcasting, enterprise, space, telecommunications to maritime, public safety and military and defense.

CMTL has been at the forefront of strategic collaborations and innovations since early 2024.

Recently, it joined forces with Eutelsat OneWeb to provide low Earth orbit (LEO) satellite connectivity services to several regions in Antarctica. Eutelsat OneWeb is a subsidiary of Eutelsat, which specializes in providing Internet connectivity in LEO. Eutelsat acquired OneWeb in 2023. With the acquisition, EUTLF became a fully integrated GEO-LEO satellite operator.

CMTL also collaborated with the Arizona Department of Administration to successfully transition the state’s flagship 911 system to Comtech’s updated NG911 services infrastructure.

In the last reported quarter, the company incurred a loss of 15 cents per share, missing the Zacks Consensus Estimate by 153.57%. Revenue increased approximately 0.4% year over year to $134 million. The top line missed the consensus estimate by 12.18%.

Currently, CMTL has a Zacks Rank #3 (Hold). The stock has lost 81.1% versus the subsector’s gain of 54% last year.

You can see The complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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