4:00 PM ET 12/4/08 Symbol Last % Chg CMTL 44.02 -2.87%
DOW JONES NEWSWIRES
Comtech Telecommunications Corp. (CMTL) said Thursday that its wholly-owned subsidiary Comtech PST Corp. and division Hill Engineering each received a subpoena from the U.S. Department of Defense.
The subpoena requested a broad range of documents and other information relating to a third party's contract with the Department of Defense and related subcontracts for the supply of specific components by Hill to the third party, according to a filing with the Securities and Exchange Commission.
An internal investigation has begun and the company intends to fully cooperate with the investigation and provide requested documents and other information, according to the filing.
The company said it is unable to predict the outcome of the investigation at this point.
Not unusual for this type of audit to be conducted given the current environment regarding government contract expenditures. CMTL is a high profile company that supplies sensitive equipment to many units within the DOD. RFP's and subsequent contracts are often very competitive with lucrative awards for the winning company. Remember the hoopla over the refueling plane contract.