Comtech Telecommunications Announces $100M-Plus 911 System Contract
Comtech Telecommunications Corp. (NASDAQ: CMTL) said Monday that it was awarded a $100-million-plus contract during the fiscal third quarter for a next-generation 911 communications system in a northeastern state.
What Happened
Comtech bought the state and local government Next Generation 911 business from General Dynamics Corporation (NYSE: GD)'s information technology division and hired about 60 of the company's employees, the company said in a Monday press release.
The contract for a 911 communications system is a five-year awards that begins Aug. 4, Comtech said.
The company is set to develop, enact and operate a secure, IP-based NG-911 system.
"Built on a secure cloud architecture, the Comtech NG-911 system provides superior reliability, redundancy and sustainability to accommodate emergency communications to this Northeastern state," according to Comtech.
Why It's Important
"As a leader in safety and security technologies, we are delighted that this Northeastern State has chosen to work with Comtech, and we look forward to partnering with them on this five-year contract and other opportunities," Fred Kornberg, president and CEO of Comtech, said in a statement.
"With safety and security markets at growth inflection points, we are excited about our acquisition of the NG-911 business and our ability to expand the scale and breadth of our innovative market-leading products and services to state and local government public safety agencies."
What's Next
Comtech said it will provide financial and other details on the contract and the NG-911 acquisition during its third-quarter conference call on a date to be announced.
The company's stock was trading up 4.48 percent to $23.92 at the time of publication Monday.
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