Comtech Telecommunications Corp. Signs Definitive Agreement to Acquire Insite Consulting and Consolidates Comtech Tolt Operations into Comtech Mobile Datacom.MELVILLE, N.Y. -- Comtech Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. 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 its Maryland-based subsidiary, Comtech Mobile Datacom Corporation, has entered into a definitive agreement to acquire certain assets and assume certain liabilities of Insite Consulting, Inc. ("Insite"), a logistics application software company. Consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the transaction is subject to the satisfaction of customary closing conditions. E[acute accent acute accent n. A mark (´) indicating: a. that a vowel is close or tense, as é in French été. b. that a vowel or syllable has a high or rising pitch, as in Chinese or Ancient Greek. c. ]Insite, formed in 1998, has developed the geoOps(TM) Enterprise Location Monitoring System, a software-based solution that allows customers to integrate legacy data systems with near-real time logistics and operational data systems. Such real-time operational data updates are distributed to command centers, mobile and fixed, enabling them to share the same view of unfolding operations or emergency scenarios. E[acute accent]Insite's primary customer is the United States Air Force United States Air Force (USAF) Major component of the U.S. military organization, with primary responsibility for air warfare, air defense, and military space research. It also provides air services in coordination with the other military branches. U.S. . Insite was recently awarded a contract to incorporate its software platform into a multi-national satellite-based friendly force tracking system to be deployed by NATO NATO: see North Atlantic Treaty Organization. NATO in full North Atlantic Treaty Organization International military alliance created to defend western Europe against a possible Soviet invasion. . E[acute accent]Comtech will purchase the business of Insite for $2.7 million, plus certain earn-out payments based on the achievement of future sales targets. Insite's sales were less than $2.0 million in calendar 2005 and the impact of this acquisition on the Company's fiscal 2007 operating results is expected to be near break-even. E[acute accent]In addition, the Company announced that the operations of Comtech Tolt Technologies, Inc. are being consolidated into Comtech Mobile Datacom. As part of this consolidation, the Company will further focus its efforts on commercial satellite-based mobile data applications and significantly de-emphasize stand-alone sales of low margin Tolt legacy hardware products. Stand-alone sales of these low margin products during fiscal 2006 are expected to approximate $15.0 million and such sales in fiscal 2007 are expected to be nominal. E[acute accent]Fred Kornberg, President and Chief Executive Officer of Comtech Telecommunications Corp., said, "The Insite acquisition will allow Comtech Mobile Datacom to offer additional software applications to the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Government's logistics and war fighting communities, as well as to approved allied military forces." E[acute accent]Mr. Kornberg added, "In the long-term, we believe that the combination of our (i) superior location and messaging hardware offerings, (ii) state-of-the-art network operations center See NOC. Network Operations Center - (NOC) A location from which the operation of a network or internet is monitored. Additionally, this center usually serves as a clearinghouse for connectivity problems and efforts to resolve those problems. , (iii) proven operating performance in the demanding military arena, (iv) the newly acquired geoOps(TM) software platform, and (v) the ability to integrate handheld devices into our satellite-based offerings, will provide commercial companies in vertical markets that require near real-time communications with a compelling, well-integrated solution." E[acute accent]Comtech Mobile Datacom Corporation, a Germantown, Maryland-based company, is engaged in the provision of satellite-based packet data communication systems and location and messaging services through the use of advanced communication and network technology. To learn more about Comtech Mobile Datacom, please visit the company's website at www.comtechmobile.com. E[acute accent]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, mobile data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. and RF microwave amplifiers. 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. E[acute accent]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. E[acute accent]PCMTL PCMTL Progressive Cars Montreal (Montreal, Canada) |
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