Comtech Telecommunications Corp. CMTL recently announced that its subsidiary, Comtech PST Corp., has clinched a $2.2-million follow-on order from an anonymous contractor to supply Radio Frequency (RF) microwave control components to the U.S. Army. This development took place during Comtech’s third-quarter fiscal 2020.
The PST Group, which is part of Comtech’s Government Solutions segment, has been a prominent player in the field of High Power RF and Microwave Control Components. With a legacy of serving for more than 25 years to the U.S. military forces, the subsidiary manufactures reliable and cost-effective products that are specifically designed to function in hostile environments.
Equipped with an extensive portfolio of device modeling solutions and avant-garde switching technology, this Comtech subsidiary specializes in state-of-the-art control components that are used in communication, electronic warfare and radar transmitter systems. Serving broad bandwidths of 10MHz to 18GHz, these highly integrated components include high power microwave limiters, low power microwave switches and low power microwave multi-function control assemblies.
This Melville, NY-based company’s PST segment had also secured a $3.5-million deal to supply high-power amplifier systems to the U.S. army. These broad frequency band amplifiers, which utilize best-in-class electronic warfare jamming transmitter technology, are popular in domestic and international markets. These innovative amplifiers are primarily developed to operate in rough environmental conditions with higher reliability and exceptional customer experience.
To strengthen global security and improve public safety, Comtech created a niche market for highly secure wireless solutions. The company continues to provide 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. Notably, the latest follow-on contract for high power RF and microwave control components underscores the U.S. Army’s trust in the company’s ability to offer adequate professional support services and engineering services globally that ensures a steady revenue stream.
Impressively, 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 as well as 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.
Despite innovative product portfolio and steady contract flow, shares of Comtech have plunged 32.7% compared with the industry’s decline of 22.1% in the past year.
Comtech currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader industry are Opera Limited OPRA, InterDigital, Inc. IDCC and Tucows Inc. TCX. While Opera and InterDigital sport a Zacks Rank #1 (Strong Buy), Tucows carries a Zack Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Opera’s bottom line surpassed the Zacks Consensus Estimate twice in the last four quarters. The company has a trailing four-quarter positive earnings surprise of 192.9%, on average.
InterDigital’s bottom line surpassed the Zacks Consensus Estimate thrice in the last four quarters. The company has a trailing four-quarter positive earnings surprise of 62%, on average.
Tucows’ bottom line surpassed the Zacks Consensus Estimate twice in the last four quarters. The company has a trailing four-quarter positive earnings surprise of 8.7%, on average.
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