Company Overview of Comtech EF Data Corporation

Comtech EF Data Corporation a contract modification to its previously announced contract for the development of the Advanced Time Division Multiple Access (TDMA) Interface Processor (ATIP) for the U.S. government's Space and Naval Warfare Systems Command (SPAWAR). This modification funded the remaining $3.0 million of an initial $7.5 million development order and fully funded a $1.0 million option to develop the ATIP Terminal Simulator that will be used to complete testing of the ATIP system. With this contract modification, SPAWAR has funded $8.5 million of the $29.0 million total potential contract value. The ATIP is a Layer-2 Ethernet bridging device that will be installed on ship, shore and submarine platforms in the Navy Multiband Terminal (NMT).

Comtech Telecommunications Corp. announced that its subsidiary, Comtech EF Data Corp., received $1.0 million in equipment orders. The infrastructure equipment will support the transport of voice, video and data traffic over a 150 Mbps satellite-based network for a foreign ministry. Comtech EF Data's Advanced VSAT Solutions will be supplied for hub and remote locations of this multi-region, shared satellite network. The Advanced VSAT is an innovative hub-spoke platform incorporating technologies that enable the most efficient, cost-effective, high quality, reliable, secure and scalable connectivity. The combination of advanced forward error correction, ACM/VCM, header and lossless payload compression, RAN and WAN optimization, advanced QoS and dynamic bandwidth management reduce OPEX and CAPEX by minimizing leased bandwidth, reducing antenna and BUC size, and minimizing power consumption. The result for users is an overall reduction in the total cost of ownership and flexibility for shared bandwidth networks that cannot be achieved with conventional hub-spoke platforms.

Comtech Telecommunications Corp. announced that its subsidiary Comtech EF Data Corporation received a contract with a potential value of approximately $29.0 million, to develop and produce the Advanced Time Division Multiple Access Interface Processor for the Space and Naval Warfare Systems Command. The ATIP will replace the Navy's legacy TDMA Interface Processor. The ATIP is a Layer-2 Ethernet bridging device that will be installed on ship, shore and submarine platforms in the Navy Multiband Terminal. The contract includes options for development and engineering services including software design and development, test and evaluation support and sustainment support on a cost-plus basis. The contract also provides for the eventual production of the ATIP terminals at a firm-fixed price over a four year period through 2018. The total contract value, including production options, approximates $29.0 million. The Company received its first development order for $7.5 million relating to the development phase of the ATIP and funding for this order has initially been set at $4.5 million. Comtech has a long history of successfully supporting the Navy and was chosen for this competitive award because it offered the overall best value. The tasks on the $7.5 million order, if fully funded, are expected to be completed by April 2014.