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Comtech to Supply Mission Critical Equipment to US Army

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Comtech Telecommunications Corp. (CMTL - Free Report) recently announced that Command & Control Technologies group, part of its Government Solutions segment, procured orders totaling $32.5 million from the U.S. Army. Per the deal, received during fourth-quarter fiscal 2018, the company will provide satellite terminals and networking equipment.

The Command & Control Technologies group provides mission-critical, highly-mobile C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance) solutions. With the deal, the company strengthened its long-standing business relationship with the U.S. Army.  

Comtech has created a niche market for highly secure wireless solutions to defend global security and improve public safety. 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.

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 depend on Comtech’s cyber security expertise, professional consulting services and highly secure deployable satellite solutions for mission-critical communications. Earnings estimates of the company have been revised up 59.5% year over year to 59 cents, representing bullish investor sentiments about the long-term growth of the company.

With diligent execution of operational plans, Comtech has outperformed the industry in the past year with an average return of 81.1% compared with 14.9% growth for the latter.



The industry, which includes players like QUALCOMM Incorporated (QCOM - Free Report) , Clearfield, Inc. (CLFD - Free Report) and Harris Corporation , remains poised to benefit from favorable growth dynamics as leading carriers plan to introduce 5G technology in select cities across the country by the end of 2018. In addition, macroeconomic tailwinds buoyed by President Trump's pro-growth policy changes, namely, significant cut in corporate tax and deregulation are likely to spur overall industry growth.

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