Comtech Telecommunications Corp. Acquires Advanced Hardware Architectures Business.Business & High Tech Editors MELVILLE, N.Y.--(BUSINESS WIRE)--July 31, 2002 Comtech Telecommunications Corp. (Nasdaq: CMTL CMTL Chief Military Training Leader CMTL Center for Mathematics, Teaching and Learning ): - Becomes the Leading Provider of Patented Turbo Product Code (TPC) Technology - Comtech EF Data's Satellite Modems Incorporate TPC Technology to Increase Efficiency by Up to 60% Comtech Telecommunications Corp. (Nasdaq: CMTL) announced today that its newly-formed subsidiary, Comtech AHA Corp. (Comtech AHA), has acquired certain assets and assumed certain liabilities of privately-held Advanced Hardware Architectures, Inc. (AHA) located in Pullman, Washington Pullman is a city in Whitman County, Washington, United States. The population was 24,675 at the 2000 census. The main campus of Washington State University is located in Pullman. History The city of Pullman was incorporated in 1886 with a population of 250 people. . AHA designs, develops and markets forward error correction A communications technique that can correct bad data on the receiving end. Before transmission, the data are processed through an algorithm that adds extra bits for error correction. If the transmitted message is received in error, the correction bits are used to repair it. integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. and data coding technology solutions for telecommunications systems customers. Among its most notable products is the latest generation forward error correction technology, called Turbo Product Codec (TPC (Transaction Processing Performance Council, San Francisco, CA, www.tpc.org) An organization devoted to benchmarking transaction processing systems. In order to derive the number of transactions that can be processed in a given time frame, TPC benchmarks measure the total performance of ). TPC chips are an important enabling technology included in Comtech EF Data's bandwidth efficient modems. AHA has also developed chips used in other telecommunications applications, as well as data compression data compression Process of reducing the amount of data needed for storage or transmission of a given piece of information (text, graphics, video, sound, etc.), typically by use of encoding techniques. for tape storage. "The acquisition further solidifies Comtech's leadership position in developing innovative, advanced telecommunication equipment by using patented Turbo Product Code error correction techniques. This technology can reduce customer satellite transponder A receiver/transmitter on a communications satellite. It receives a microwave signal from earth (uplink), amplifies it and retransmits it back to earth at a different frequency (downlink). A satellite has several transponders. costs or increase data throughput by up to 60%," said Fred Kornberg, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Comtech Telecommunications Corp. Mr. Kornberg added, "In addition to being accretive from the start, the acquisition allows us to accelerate our research and development cycle for the next generation of satellite modems. We will also seek to identify additional markets, including wireless applications, for these forward error correction chips, which are critical in enabling reliable, high-speed communications." Comtech AHA purchased certain of the assets of AHA, including accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , inventory, equipment and intellectual property for $6.8 million, and assumed certain operating liabilities of AHA. The purchase price, which is being funded from available cash balances, is subject to adjustment based on a final determination of the net tangible assets Net Tangible Assets Calculated as the total assets of a company, minus any intangible assets such as goodwill, patents and trademarks, less all liabilities and the par value of preferred stock. Also known as "net asset value" or "book value". of AHA as of July 31, 2002. AHA is expected to contribute approximately $7 million of revenue and be accretive by one or two cents in fiscal 2003. Comtech also announced today that is has appointed Bill Thomson as president of Comtech AHA. Thomson, who served as president of AHA, has been with the company since 1989 and has a close working relationship with its customers and industry organizations. In connection with the acquisition, Comtech expects to record a one-time charge during the fourth quarter of fiscal 2002 for purchased in-process research and development as determined by an independent valuation firm. More information on AHA's innovative products can be found at www.aha.com. About Comtech Telecommunications Corp. Comtech Telecommunications Corp. (Nasdaq: CMTL) is an innovative player in the domestic and global high-technology markets. Through its operating units, Comtech pursues opportunities in three interrelated in·ter·re·late tr. & intr.v. in·ter·re·lat·ed, in·ter·re·lat·ing, in·ter·re·lates To place in or come into mutual relationship. in market segments: telecommunications transmission, RF microwave amplifiers, and mobile data communications services. In each of these segments, growth is driven by increasing demand for telecommunications infrastructure and network and messaging services. The Company's specialties include the design and manufacture of advanced products and networks used for transmission of voice, data and video using satellite, over-the-horizon microwave, terrestrial line of sight and other wireless communications systems. More than 275 distinct Comtech products are in service in more than 100 countries. Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company's Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such Securities and Exchange Commission filings. |
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