CMTL - Comtech (CMTL) - Add Arizona to the NG911 Client List
Arizona Award. Comtech has been awarded a $35.8 million contract to deploy NG911 technologies and services to the state of Arizona. The contract includes implementing Comtech's NG911 solutions to provide citizens with advanced communication capabilities when calling for emergency services including police, fire, and emergency medical services. The contract can be broken down to $23.5 million, with $12.3 million related to a multi-year extension option.Frost & Sullivan Award. Comtech was recognized by Frost & Sullivan for registering the most significant y-o-y market share increase among all NG911 primary contract holders. F&S puts Comtech's market share at 26.2% in 2020, up from 17.3% in 2019. By closing statewide contracts in Pennsylvania, Ohio, South Carolina, and now Arizona, Comtech's direct NG911 contracts now represent a population of over 55 million.Other Recent Awards. Comtech continues to garner contract awards, including a $5.0 million contract for a NG911 modernization project with a U.S. government end customer; a $3.2 million satellite systems follow-on award with the Brazilian military; and a $7.1 million award for a cellular-based Wireless Emergency Alerts solution with a tier-one mobile network operator.Board Changes. Comtech appointed Judy Chambers to the Board. Ms. Chambers is the managing principal of Meketa Investment Group. The Company also announced the retirement of three long-time Board members following the December 2021 annual meeting. Comtech has refreshed its Board over the past three years, in our view, adding new members resulting in a more diverse Board.Maintain Outperform and $30 Target Price. We continue to rate CMTL shares Outperform with a $30 twelve-month price target. This target represents an EV/EBITDA multiple of 13.0 times our FY2021 adjusted EBITDA estimate of $75.1 million and 12.1x our $80 million FY22 EBITDA estimate. We believe the multiple large opportunities ahead of Comtech could be transformative. Read More >>