Comtech Telecommunications receives $58.9M Navy contract

Comtech Telecommunications Corp. Monday said it has received a $58.9 million contract to supply the U.S. Navy with satellite communications hardware, software and services.

The Melville-based provider of communications equipment for military and civilians markets said it already has received the first delivery order worth $7.9 million.

Work will be performed at the company's Tempe, Arizona, subsidiary, Comtech EF Data Corp.

The sole-source contract with the Space and Naval Warfare Systems Command in San Diego calls for Comtech to supply satellite modem upgrade kits, software upgrades and support services.

A modem, short for modulator/demodulator, converts signals to let incompatible devices such as digital computers and analog telephone lines communicate. 

Work is expected to be completed by March 2023.

In March, Comtech reported net income of $15.8 million, or 66 cents per diluted share, on net sales of $133.7 million for the three months ended Jan. 31. 

Shares of Comtech rose 1.7 percent Monday morning to $31.71. The stock has climbed about 142 percent during the past 12 months.