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Comtech Boosts Emergency Services With Contract Extension

Zacks Equity Research

Comtech Telecommunications Corp.’s CMTL Safety & Security Technologies group has secured a contract extension with $18.4 million ceiling from an anonymous U.S.-based Voice over Internet Protocol (VoIP) telecom carrier. The contract is a testament to the company’s commitment to public safety for more than two decades.

Per the deal received during first-quarter fiscal 2020, Comtech’s Commercial Solutions segment will continue providing maintenance and support services for various location-based and emergency services. The contract reinforces the existing business relationship between the two companies and ensures a steady revenue stream for Comtech.

Furthermore, the leading manufacturer of advanced communications solutions will deliver reliable emergency services for VoIP service providers with the launch of its latest technology — LivewirE9-1-1. The FCC mandated technology is specifically designed to direct interconnected VoIP calls to 911, thereby providing a common call control interface for VoIP services. It supports multiple call-routing configurations, provides call routing instructions, safeguards the identity of the subscriber, and reports prompt and accurate location on a real-time basis.

Few days back, Comtech Solacom Technologies had collaborated with a leading Australian telecommunications provider — Telstra Corporation Limited TLSYY — to deploy a 24-hour Triple Zero service in Adelaide. The triple zero service is the equivalent measure of 911 public safety answering point in North America. The partnership was mainly undertaken to streamline call handling and management processes in emergency situations by protecting critical public safety infrastructure in Australia.

Notably, Comtech has created a niche market for highly secure wireless solutions to defend global security and improve public safety. The company continues providing market-leading products for messaging, location and deployable wireless communications. It offers services to integrate networks, servers, gateways and intelligent peripherals, and provides transmission responses to users.

Customers depend on Comtech’s commercial wireless applications, which are based on innovative mobile cloud computing services like text messaging, public safety solutions, hyper-local search, workforce tracking, social applications, and telematics and navigation. Federal government agencies also rely on Comtech’s cyber security expertise, professional consulting services and highly secure deployable satellite solutions for mission-critical communications.

Backed by healthy business momentum including strong backlog, the stock has rallied 54.2% year to date compared with the industry’s 21.6% growth.

Comtech carries a Zacks Rank #3 (Hold).

A couple of better-ranked stocks in the industry are Qualcomm Incorporated QCOM and Ubiquiti Inc. UI, both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Qualcomm surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average positive earnings surprise being 8.7%.

Ubiquiti surpassed the consensus mark thrice in the preceding four quarters, the average positive earnings surprise being 16.1%.

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