Comtech Telecommunications makes communications equipment used by the military. Militaries, and some individuals and industries, use Comtech’s satellite communications products for voice, video, and data transmission in areas where land-line communications are non-existent. Their mobile data communication products are used by a variety of military vehicles to connect to satellite based communication networks. Their broadband amplifiers are used by the Military for radar detection and by Medical institutions for cancer detection and treatment. . 
Headquartered in Melville, New York, Comtech sells its products to the Department of Defense, militaries of foreign governments, oil companies, and medical companies. Their revenue grew doubled from 2004 to 2007.  Comtech supplies the U.S. military with satellite-based communication products as well as mobile communication equipment. Because sales to the U.S. Military compose nearly half of its revenue, Comtech has devoted more of its research and development budget to developing durable, compact satellite-based communications products designed for ground personnel and military vehicles. In addition, Comtech has devoted a substantial portion of its research and development budget to lowering the production costs of its over-the-horizon microwave systems, a cost-effective alternative to satellite communications, due to increased sales of these products to oil companies and a Northern African country.
Sales of Comtech’s products rose by $54.2 million, or 13.8%, to $445.1 million during 2007. For 2007, growth primarily came from increased sales of Cometch’s over-the-horizon microwave equipment to the U.S. Military and its mobile data-transmission products to the U.S. Army’s Logistics Program.
Sales to the U.S. Government, which made up 47.3% of 2006 revenue, continued to grow as a portion of Comtech’s total sales, reaching 61.3% of 2007 revenue. While sales to international customers grew by 13.7% in 2007, sales to the U.S. Government rose by 47.5%.  Because security and cost are vital to the U.S. Military’s communications networks, the U.S.Office of Management and Budget expects satellite-based communication to triple from 2007 to 2010.
Comtech is more profitable than its competitors - its 2007 gross margin of 43.4% beats the industry average of 35.99% in 2007.
The company's operating margin increased from 16.3% in 2006 to 19.1% in 2007.
In May 2008, Comtech agreed to buy Radyne Corp.(RADN) for $223.6 million. Comtech will make a first step cash tender offer at $11.50 per share, representing a premium of about 33 percent over Radyne's average closing price from February 2008 to May 2008. Buy purchasing Radyne, Comtech will have access to Radyne’s satellite-based communications products and broadband amplifier equipment. Additionally, Comtech purchased the satellite communication company in order to expand its customer base to more foreign governments and companies, which made up 26.2% of 2007 sales.
Telecommunications Transmission Segment(49.3% of 2007 Revenue): This segment produces produces modems, power amplifiers, and over-the-horizon microwave equipment designed for highly secure data and video transmission in areas where land line communication is unfeasible .
Sales in this segment increased 11.1% to $445.7 million in 2007 driven by sales of their 16 Mbps troposcatter modem upgrade kits to U.S. Department of Defense as well as increased sales of its over-the-horizon equipment. T
Mobile Data Communications Segment(42.6% of 2007 Revenue):
In August 2007, Comtech signed a 3-year contract with a ceiling value of $605.1 million to provide the U.S. Military with MTS products and support. In addition, Comtech agreed to a 3 year, $216 million contract to supply the U.S. Army’s BFT tacking system with its mobile data communications products. Sales of its MTS and BFT products have made its Mobile Data Communications segment Comtech’s fastest growing segment for 2005, 2006, and 2007. 
During 2007, net sales in Comtech’s Mobile Data Communication Segment increased by 26.8%.
RF Microwave Amplifiers Segment(8.1% of 2007 Revenue): Comtech’s RF Microwave Amplifiers segment manufactures high-power, broadband amplifiers in the microwave and RF spectrum that are used by the U.S. Military to boost signals as well as jamming radar and Identification Friend or Foe(IFF) system and by medical companies for oncology treatment.
Net sales in Comtech’s RF Microwave Amplifiers segment decreased from $44.1 million in 2006 to $36.2 million in 2007.  The U.S. Military decreased orders for Comtech’s device jamming systems in 2006 and 2007 because these jamming systems operate on outdated technology. Longer than expected production time has delayed shipments of Comtech’s device jamming systems equipped with newer technology. Although Comtech has not devoted a substantial part of research and development spending to its RF Microwave Amplifiers segment, acquisitions, such as the 2008 acquisition of Radyne, have doubled the size of its RF Microwave Amplifier segment.
The U.S. Military wants to increase their budget by 13.5%, or $57 billion, in fiscal 2010. This budget increase is about 6% higher than average budget increase over the past eight years. Although some of the budget increase will pay for rising health care costs and military pensions, the 10% budget increase, adjusted for inflation, will help the U.S. military prepare for a world after the War in Iraq. The U.S. military plans on reinvesting in new equipment and supplies to replace the equipment damaged from the wars in Iraq and Afghanistan.  Several army vehicles are not equipped with communication receivers.Comtech has begun to design durable transceivers and receivers that can be installed for a variety of military vehicles in response to increased funding for the U.S. Military's MTS program. . As of 2007, Comtech communication equipment is present in the Apache helicopter, the Black Hawk helicopter, the Abrams tank, and the Bradley Fighting Vehicles.
The Future Combat Systems(FCS) is a major program in the U.S. Army’s modernization efforts. FCS is made up of manned vehicles, unmanned vehicles, and personnel all connected through a common network. In order to act as a cohesive-unit, this family of vehicles and soldiers requires advanced and reliable logistics and communication equipment.  In addition, the U.S. Office of Management and Budget expects military satellite throughput, measured in Mbps, to triple from 2007 to 2009.  The need for reliable communications networks will benefit satellite-based telecommunication companies into 2010.
As of 2004, only 6% of African citizens owned a mobile phone. Because there is little land-line communications infrastructure, sales of mobile phones have grown rapidly since 2004. One North African country accounted for 3% of Comtech’s 2007 net sales and 9.7% of its 2006 net sales. Comtech’s research and development budget to lowering the costs of its telecommunication products and its mobile data communications products in order to take advantage of the growing telecommunications sector in Africa. Slowing growth in global economies could significantly reduce new orders for telecommunication equipment from developing economies. The emerging markets are vulnerable to the financial crisis affecting the U.S. and Western Europe and sales of new technological equipment are likely to decrease. Slowing global macroeconomic growth, especially in Africa, could significantly hurt Comtech’s future revenue because sales from come African country comprised such a large portion of its 2006 and 2007 net sales.
iDirect Technologies(Privately Held): iDirect provides networking equipment that allows broadband access over satellite networks. It sells to government agencies and large enterprises including France Telecom, BT, and the National Guard. iDirect operates worldwide with offices in Brazil, Hong Kong, the United Kingdom, and the United States. Singapore Technologies acquired iDirect for $165 million.
Qualcomm, Inc.(QCOM): Qualcomm manufactures digital wireless telecommunications products. Qualcomm Wireless and Internet(QWI) uses CDMA-based systems for wireless voice and data communications as well as GPS products. This segment sells equipment used by companies to connect wirelessly with their assets, products, and workforce. Its products operate on Globalstar low-Earth-orbit satellite-based telecommunications systems. Generating revenues of nearly $9 billion for 2007, Qualcomm able to devote substantially more money to acquisitions and research and development than its competitors
ViaSat, Inc.(VSAT): ViaSat produces satellite and other wireless communications and networking systems for government and commercial use. Their government sector develops products that enable military and government users to communicate through secure networks. ViaSat’s Commercial segment produces communications equipment designed for consumer broadband products and mobile broadband products. Its Satellite Services segment provides terrestrial and satellite services for enterprise networking and backup protection of primary networks. In 2008, ViaSat began developing a competing line of BFT products. ViaSat’s BFT products could reduce the revenue Comtech receives from its BFT products by $50 million.
Paradise Datacom LLC(Privately Held): Paradise Datacom manufactures satellite telecommunications equipment. Paradise offers customers the possibility of purchasing a total electronic package, which reduces the amount of time their customers have to spend searching for equipment. Paradise Datacom has manufacturing facilities and offices in Europe and North America.
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Above chart in US dollars