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Comtech Secures Contract to Supply Amplifiers to U.S. Army

Zacks Equity Research

Comtech Telecommunications Corp.’s CMTL subsidiary Comtech Xicom Technology, Inc. — part of the Commercial Solutions Segment, secured a $1.3 million deal in second-quarter fiscal 2020. The contract was awarded by an unnamed domestic integrator for supplying Traveling Wave Tube Amplifiers (TWTAs).

The Ka-band TWTAs are specifically designed for the U.S. Army Satellite Communications (SATCOM) program to provide voice, data, video conferencing, Internet and high-resolution video connectivity to the military forces.

Per the terms of the deal, Comtech’s Commercial Solutions segment will continue to deliver various maintenance, support and emergency services to the U.S. Army. Notably, the contract reinforces the existing business relationship and ensures a steady revenue stream for Comtech.

Leading the market in millimeter wave TWTAs, the Santa Clara, CA-based SATCOM company manufactures a wide array of satellite modems, frequency converters and power amplifiers for military and commercial satellite uplink applications.

The state-of-the-art amplifiers are primarily developed to operate in rough environmental conditions for fixed and ground-based as well as airborne mobile applications. The product range incorporates power levels from 8 W to 3 kW in order to operate within the 2 GHz to 45 GHz spectrum. The TWTA units are compact and lightweight, customized to operate over -40°C to +60°C. They also incorporate ease of service and maintenance, and higher reliability with exceptional customer experience.

To strengthen global security and improve public safety, Comtech has created a niche market for highly secure wireless solutions. 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.

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, 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.

Comtech has a long-term earnings expectation of 5%. Backed by diligent execution of operational plans, this Zacks Rank #3 (Hold) stock has rallied 41.7% year to date compared with the industry’s 20.6% growth.

Some better-ranked stocks in the industry are Qualcomm Incorporated QCOM, Ubiquiti Inc. UI and PCTEL, Inc. PCTI. While Qualcomm and Ubiquiti sport a Zacks Rank #1 (Strong Buy), PCTEL carries a Zacks Rank #2 (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%.

PCTEL surpassed the consensus mark in each of the trailing four quarters, the average positive earnings surprise being 150.6%.

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QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
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