Comtech Telecommunications Corp. Responds to Outerbridge Capital Management LLC's Letter

Strategic Insights -

Comtech Telecommunications Corp. has issued a press release commenting on a letter from shareholder Outerbridge Capital Management LLC, which contained inaccurate and misleading statements regarding the company's recent $100 million investment from White Hat Capital Partners, LP and Magnetar Capital LLC. The investment has significantly enhanced Comtech's ability to execute its strategic plan for creating long-term shareholder value. The company's strategic plan has already delivered strong results, including shareholder returns of 134.5% over the past five years, strategic multi-year next-generation 911 contracts totaling over $200 million, and recognition from Frost & Sullivan and Northern Sky Research for its next-generation 911 solutions and market leadership position in the satellite cellular backhaul market.

Key Takeaways:

  • Comtech Telecommunications Corp. has responded to a letter from Outerbridge Capital Management LLC, which contained inaccurate and misleading statements regarding the company's recent $100 million investment from White Hat Capital Partners, LP and Magnetar Capital LLC.
  • The investment has more than doubled Comtech's accessible capital to achieve its strategic objectives.
  • The company's strategic plan has delivered strong results, including shareholder returns of 134.5% over the past five years.
  • Comtech has signed strategic multi-year next-generation 911 contracts totaling over $200 million from states such as Pennsylvania, Arizona, and Iowa.
  • The company has also been recognized by Frost & Sullivan and Northern Sky Research for its next-generation 911 solutions and market leadership position in the satellite cellular backhaul market.
  • The investment will be applied to a range of initiatives to further accelerate growth and profitability, including completing the build out of Comtech's new technology centers and advanced manufacturing capabilities.
  • Mark Quinlan, who brings over 20 years of experience in the technology space, will be joining the Comtech Board in 2022.

Statistics:

*shareholder returns of 134.5% over the past five years.

*strategic multi-year next-generation 911 contracts totaling over $200 million.

*2005 billion in accessible capital to achieve its strategic objectives.

Sources:

  • Comtech Telecommunications Corp., Press Release, October 25, 2021
  • Comtech Telecommunications Corp., Form 8-K, filed with the Securities and Exchange Commission on October 25, 2021
  • Comtech Telecommunications Corp., Annual Report on Form 10-K, filed with the Securities and Exchange Commission on July 31, 2021.