Comtech Telecommunications Corp. Announces Agreement to Acquire Memotec, Inc.Business Editors/High-Tech Writers MELVILLE, N.Y.--(BUSINESS WIRE)--April 19, 2004 Comtech Telecommunications Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CMTL CMTL Chief Military Training Leader CMTL Center for Mathematics, Teaching and Learning ) announced today that it has agreed to acquire certain assets and assume certain liabilities of Memotec, Inc. from Kontron AG for approximately $2.6 million. At the same time, the Company will also purchase inventory owned by Kontron Canada Inc., which is currently manufacturing Memotec's products, for approximately $2.5 million. Memotec's annual revenues approximate $6.0 million. These transactions are expected to be neutral to fiscal 2004 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of and slightly accretive in fiscal 2005. Memotec, based in St. Laurent, Quebec, Canada, is a provider of next generation solutions for telecommunications service providers, mobile network operators and corporate customers. Memotec develops a comprehensive range of multi-service platforms capable of optimizing communication networks and will become part of the Comtech EF Data family of products in the telecommunications transmission segment. Manufacturing of Memotec's products will be transitioned to Comtech EF Data's facility in Tempe, Arizona Tempe (pronounced /tɛm.'piː/) is a city in Maricopa County, Arizona, USA, with a population of 169,712 according to 2006 Census Bureau estimates. . Memotec's product line of access devices and voice gateways provides consolidation of multi-service traffic, including data, voice and video, over a common packet-based network infrastructure such as Asynchronous Transfer Mode See ATM. (communications) Asynchronous Transfer Mode - (ATM, or "fast packet") A method for the dynamic allocation of bandwidth using a fixed-size packet (called a cell). See also ATM Forum, Wideband ATM. ATM acronyms. Indiana acronyms. (ATM), Internet Protocol See Internet and TCP/IP. (networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol. (IP) and Frame Relay A high-speed packet switching protocol used in wide area networks (WANs). Providing a granular service of up to DS3 speed (45 Mbps), it has become popular for LAN to LAN connections across remote distances, and services are offered by most major carriers. . These products feature high quality voice, bandwidth optimization, adaptability and reliability. Comtech EF Data satellite modems deliver increased customer value through physical layer bandwidth optimization, including the industry's most bandwidth efficient 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. and higher order modulation. Memotec's products focus on minimizing wide area network bandwidth utilization through higher-layer payload and transport optimization for converged voice and data networks. When the combined solution is deployed in satellite cellular backhaul environments, customers can realize bandwidth savings of up to 90%. "The addition of Memotec further enhances our ability to deliver network optimization and bandwidth efficiency The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. solutions to our service provider and enterprise customers," said Fred Kornberg, President and Chief Executive Officer of Comtech Telecommunications Corp. About Comtech EF Data Corp. Comtech EF Data Corp. manufactures a broad spectrum of Data and RF products for satellite communications, including Satellite Modems, Network Monitor and Control Software, TCP/IP TCP/IP in full Transmission Control Protocol/Internet Protocol Standard Internet communications protocols that allow digital computers to communicate over long distances. Performance Enhancement Proxy, Converters, Solid State Power Amplifiers, Transceivers and Satellite Terminals. All products meet or exceed the standards published by Intelsat(R), Eutelsat, Insat, AsiaSat and other worldwide and regional satellite networks. Please visit www.comtechefdata.com for more information. About Comtech Telecommunications Corp. Comtech Telecommunications Corp. designs, develops, produces and markets innovative products, systems and services for advanced communications solutions. The Company conducts its business through three complementary segments: telecommunications transmission, RF microwave amplifiers, and mobile data communications. The Company offers niche products, systems and services where it believes it has technological, engineering, systems design or other expertise that differentiate its product offerings. About Memotec, Inc. Memotec provides multi-service access devices and voice gateways to service providers and enterprise customers. The high-quality, scalable solutions support diverse market needs. Please visit www.memotec.com for more information. 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. PCMTL PCMTL Progressive Cars Montreal (Montreal, Canada) |
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