Comtech Secures Order for Satellite Ground Station Equipment
Comtech Telecommunications Corp.’s CMTL subsidiary, Comtech EF Data Corp., recently clinched a $1.6-million deal to reinforce its position in the market. Notably, the contract, which deals with the supply of avant-garde satellite ground station technologies, was awarded by a premier mobile network operator in China.
Per the terms of the deal, Comtech EF Data Corp., which is part of its Commercial Solutions segment, will provide its much-acclaimed Heights Networking Platform to elevate the mobile backhaul solutions with unparalleled horsepower, intelligence and efficiency. Equipped with the highest throughput capacity and powerful traffic analytics, the solution leverages a single user interface that enables operators to seamlessly design, implement, monitor and optimize the networking infrastructure.
Modular in design, Comtech’s Heights networking solution supports various business models simultaneously. With dynamic bandwidth allocation and coding techniques, the innovative platform has been intricately designed to support any frequency band and satellite architecture, which allows multiple cost-effective expansion paths. Also, widely known to support burgeoning traffic loads on traditional satellites, the networking platform provides real-time voice and video applications with high data rate Internet access.
Apart from providing users with a plethora of network design tools, the Heights networking platform is furnished with a robust analytics engine that has the capacity to support 2G and 4G ultra-low latency mobile backhaul services with advanced teleport technologies based in China. Ideal for 5G networking services, the comprehensive toolkit, which is incorporated with cost-efficient LTE-backed technologies, offers the best Total Cost of Ownership with the highest Quality of Experience to end users. All these features are likely to aid Comtech’s growth prospects in the near term amid challenging macroeconomic conditions posed by the deadly COVID-19 pandemic.
To strengthen global security and improve public safety with high-performance satellite communications equipment, Comtech has created a niche market for highly secure wireless solutions. The company continues to provide market-leading products for messaging, location and deployable wireless communications. It offers services to integrate networks, servers, gateways and intelligent peripherals as well as provides transmission responses to users.
Impressively, customers depend on Comtech’s commercial wireless applications, which are based on innovative mobile cloud computing services like text messaging, public safety solutions, hyper-local search, workforce tracking, social applications as well as telematics and navigation. Federal government agencies also rely on Comtech’s cyber security expertise, professional consulting services and highly secure deployable satellite solutions for mission-critical communications.
Shares of Comtech have plunged 41% compared with the industry’s decline of 8.6% in the past year.
Zacks Rank & Stocks to Consider
Comtech currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the industry are InterDigital, Inc. IDCC, Ubiquiti Inc. UI and Viasat, Inc. VSAT, each carrying a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
InterDigital’s bottom line surpassed the Zacks Consensus Estimate thrice in the last four quarters. The company has a trailing four-quarter positive earnings surprise of 62%, on average.
Ubiquiti’s bottom line surpassed the consensus mark twice in the preceding four quarters. The company has a trailing four-quarter positive earnings surprise of 5.7%, on average.
Viasat’s earnings surpassed the consensus mark in each of the trailing four quarters. It has a trailing four-quarter positive earnings surprise of 402%, on average.
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