Comtech Telecommunications Corp. (CMTL) shares were down 0.32 percent on Thursday bringing the stock price down to $18.56 at ring of the bell.
The U.S. communication equipment company was awarded a contract to develop and install a new communications system in the state of Pennsylvania for emergency services. The more than $175 million worth of the contract shows Comtech’s ability and the prospect of future orders.
Comtech will develop the project and ensure that Next Generation 911 communications are deployed. This is an emergency services contact scheme that varies in advanced functionality from the old single phone number. In specific, when the service will be contacted, the user may send a video, text message, or pictures. In certain emergency cases, these advance capabilities can be critical, such as firefighters can use footage to determine the magnitude of the fire, and police can obtain a picture of the suspect from eyewitnesses.
Deployment of the Next Generation 911 service began in 2013 and it continues to this day in different states of the United States, and also in Canada. Comtech will earn the larger portion of the payment worth $111.6 million under this deal in the second quarter of fiscal year 2021.
To improve the U.S. communications system, Comtech is active in several important defense and civilian programs. In military drills, the company’s technologies work successfully while on the other hand communication services provided to civilian government bring in a stable cash flow. Furthermore, in the international commercial and government communications market, Comtech offers different solutions.
But despite the growth potential the Melville, New York-based company bears, its stock performance does not matches with that. Price of Comtech Telecommunications Corp.’s (CMTL) stock dropped -7.98 percent over the past 5 sessions while the loss increases to nearly 50 percent since start of the year. However, stock is up 19 percent over the past month while its market capitalization as of Thursday was about $459 million.