0000023197-12-000011.txt : 20120404 0000023197-12-000011.hdr.sgml : 20120404 20120404083108 ACCESSION NUMBER: 0000023197-12-000011 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20120329 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20120404 DATE AS OF CHANGE: 20120404 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMTECH TELECOMMUNICATIONS CORP /DE/ CENTRAL INDEX KEY: 0000023197 STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663] IRS NUMBER: 112139466 STATE OF INCORPORATION: DE FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-07928 FILM NUMBER: 12740322 BUSINESS ADDRESS: STREET 1: 68 SOUTH SERVICE ROAD STREET 2: SUITE 230 CITY: MELVILLE STATE: NY ZIP: 11747 BUSINESS PHONE: 6319627000 MAIL ADDRESS: STREET 1: 68 SOUTH SERVICE ROAD STREET 2: SUITE 230 CITY: MELVILLE STATE: NY ZIP: 11747 FORMER COMPANY: FORMER CONFORMED NAME: COMTECH INC DATE OF NAME CHANGE: 19870503 FORMER COMPANY: FORMER CONFORMED NAME: COMTECH TELECOMMUNICATIONS CORP DATE OF NAME CHANGE: 19831215 FORMER COMPANY: FORMER CONFORMED NAME: COMTECH LABORATORIES INC DATE OF NAME CHANGE: 19780425 8-K 1 form8-k.htm CURRENT REPORT form8-k.htm


United States
Securities and Exchange Commission
Washington, D.C. 20549
 
 
FORM 8-K
 
 
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
 

April 4, 2012
(March 29, 2012)
 
 
0-7928
Date of Report
(Date of earliest event reported)
 
Commission File Number

 
(Exact name of registrant as specified in its charter)

Delaware
 
11-2139466
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer Identification Number)
 
 
68 South Service Road, Suite 230
Melville, New York 11747
 
 
(Address of Principal Executive Offices) (Zip Code)
 
     
     
 
(631) 962-7000
 
 
(Registrant’s telephone number, including area code)
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 


 
 

 
 
Item 1.01               Entry into a Material Definitive Agreement.
 
On March 29, 2012, Comtech Telecommunications Corp.’s subsidiary, Comtech Mobile Datacom Corporation (“Mobile Datacom”), entered into a three-year indefinite delivery/indefinite quantity (“IDIQ”) contract with the U.S. Army for its Force XXI Battle Command Brigade and Below (also known as the Blue Force Tracking (“BFT-1”) program for a not-to-exceed value of $80.7 million.

Under the IDIQ contract, Mobile Datacom will provide engineering services, program management and satellite network operations on a cost-plus-fixed-fee basis, and hardware, including options for mobile satellite transceivers, on a firm-fixed-price basis to the U.S. Army. In addition, the U.S. Army has agreed to license Comtech’s intellectual property (“IP”).

The contract’s base performance period begins April 1, 2012 and ends March 31, 2013 and provides for two twelve-month option periods exercisable by the U.S. Army. The contract is “undefinitized,” as defined in the Federal Acquisition Regulations (“FAR”), since the contract value is subject to finalization and downward negotiation, except for a fixed annual IP license fee. The payment of annual IP license fees beyond the base year is contingent upon the U.S. Army’s exercise of the optional performance periods.

A copy of the press release announcing the contract is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
 
 
Item 9.01               Financial Statements and Exhibits.
 
 
 
 

 
 
SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, Comtech Telecommunications Corp. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
  COMTECH TELECOMMUNICATIONS CORP.
 
Dated: April 4, 2012
 
By:
/s/ Michael D. Porcelain   
 
Name: Michael D. Porcelain
 
Title: Senior Vice President and
 
Chief Financial Officer

 
 

 


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Exhibit 99.1
 
COMTECH AWARDED UNDEFINITIZED $80.7 MILLION CONTRACT
 TO SUPPORT THE BLUE FORCE TRACKING PROGRAM
 
Melville, NY, April 2, 2012 - Comtech Telecommunications Corp. (NASDAQ:CMTL) announced today that its Maryland-based subsidiary, Comtech Mobile Datacom Corporation, has been awarded a three-year indefinite delivery/indefinite quantity (“IDIQ”) contract to provide sustainment support for the U.S. Army’s Force XXI Battle Command Brigade and Below - Blue Force Tracking (“BFT-1”) program, a battle command real-time situational awareness and control system.  Under the terms of this contract, Comtech will provide engineering services, program management and satellite network operations on a cost-plus-fixed-fee basis, and hardware, including options for mobile satellite transceivers, on a firm-fixed-price basis to the U.S. Army. In addition, the U.S. Army has agreed to license Comtech’s intellectual property (“IP”).
 
The three-year BFT-1 IDIQ sustainment contract has a not-to-exceed value of $80.7 million. The contract’s base performance period begins April 1, 2012 and ends March 31, 2013 and provides for two twelve-month option periods exercisable by the U.S. Army. Except for a fixed annual IP license fee, the contract value is subject to finalization and downward negotiation. The payment of annual IP license fees beyond the base year is contingent upon the U.S. Army’s exercise of the optional performance periods. The specific terms and conditions related to the IP license are covered by a separate licensing agreement which provides for an initial licensing period that begins April 1, 2012 and ends March 31, 2013 and provides for annual renewals, at the U.S. government’s option, for up to a five-year period, after which time the U.S. government will have a limited non-exclusive right to use Comtech’s IP for no additional IP licensing fee.
 
Comtech also announced today the receipt of its first order under the BFT-1 sustainment contract. This $25.6 million undefinitized order has been initially funded in the amounts of $10.0 million for the IP license fee for the base performance period and an initial $7.0 million for engineering services, program management and satellite network operations. Pricing for the engineering services, program management and satellite network operations has not yet been finalized and cannot exceed $15.6 million.
 
Fred Kornberg, President and Chief Executive Officer of Comtech Telecommunications Corp., said, “We are delighted that Comtech and the U.S. Army worked together to sustain critical worldwide military operations and believe the receipt of this contract demonstrates the ongoing importance of the U.S. Army’s BFT-1 and MTS satellite tracking communication systems.”
 
Further, Paul Lithgow, President of Comtech Mobile Datacom Corporation, said, “We look forward to continued support of U.S. military forces using the system and we will do all we can to innovate and improve the system to be more efficient and cost effective for the nation.”
 
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.
 
Comtech Telecommunications Corp. designs, develops, produces and markets innovative products, systems and services for advanced communications solutions. The Company believes many of its solutions play a vital role in providing or enhancing communication capabilities when terrestrial communications infrastructure is unavailable, inefficient or too expensive. The Company conducts business through three complementary segments: telecommunications transmission, RF microwave amplifiers and mobile data communications. The Company sells products to a diverse customer base in the global commercial and government communications markets. The Company believes it is a market leader in the market segments that it serves.
 
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
 
 
Media Contact:
Michael D. Porcelain, Senior Vice President and Chief Financial Officer
(631) 962-7000
Info@comtechtel.com

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