The American company Comtech Telecommunications Corp. (NASDAQ: CMTL), which manufactures communication systems, has won contracts to supply emergency communications and warning systems. For the first time, a major contract has been awarded for a new WEA wireless system
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Comtech is one of the main beneficiaries of the NG911 program, which aims to modernize emergency services communications in the United States. Comtech won its first major $7.1 million contract last week to supply a Wireless Emergency Alerts (WEA) system to one of the largest US mobile operators. It is compatible with 5G networks and can receive notifications on mobile devices in areas prone to floods, tornadoes, or other natural disasters.
In addition, the company announced this week that it had been awarded a contract to design the NG911 emergency communications system for Arizona for $35.8 million. Based on the base price for the contract, it is $23.5 million, but improvements may extend the deal for several years.
Often, Comtech receives such contracts as municipalities move to new technologies for emergency communication, using not just voice calls, but data transmission, MMS with photos, etc. Moreover, Comtech’s new solution provides additional cyber protection and prevents unauthorized access. Several hacking cases have been reported, for example in Texas in 2017, when 150 sirens sounded continuously for an hour and a half, creating panic.
CMTL’s stock surged 9.46% to close Monday’s session at $25.45. The company has a current market of $660.94 million and its outstanding shares stood at 25.91 million.