Comptech Telecommunications Gets $20 Million Orders To Support American Army's Blue Force Tracking Program

Comtech Telecommunications Corp. CMTL revealed it received notice from the U.S. Army indicating it exercised Option Year two of its three-year Blue-Force Tracking ("BFT-1") sustainment contract and related BFT-1 Intellectual Property license agreement. In all, the contract totaled $20.0 million and meant to continue to provide sustainment support for the American Army.

Comtech said the $20.0 million in funding for Option Year two included $10.0 million for the American Army to continue to license some of the its BFT-1 Intellectual Property. The company indicated the remaining funding was meant for engineering services and satellite network operations for which the company paid on a cost-plus-fixed-fee basis.

The company stated the Option Year two performance period commenced on April 1, 2016 and would be closed by March 31. The Company expects to get additional funded orders for Option Year two.

Comtech's President and CEO, Stanton Sloane, said "We are pleased that Comtech and the U.S. Army will continue to work together to sustain this critical worldwide military communications system. The receipt of these contracts further demonstrates the ongoing importance of the U.S. Army's BFT-1 satellite tracking communication system."

Shares of the company traded down by 1.38 percent on Monday.