Contract Total Now $127.0 MillionCurrent Year Allocation $34.2 Million
HAUPPAUGE, N.Y. (BUSINESS WIRE) -- Globecomm Systems Inc. (NASDAQ: GCOM), a leading global provider of satellite-based communications infrastructure solutions and services, announced today that the Company's wholly-owned subsidiary, Globecomm Services Maryland, has received an increase in the total value of a four-year contract from a major U.S. Government prime contractor valued up to $127.0 million. The original contract amount was $42.4 million and $70.0 million has been authorized by the customer during the first three years of the contract. The customer has now exercised its option to authorize $34.2 million for the third contract year.
Each option year requires incremental funding and includes additional options to increase the scope of work. This $34.2 million option is fully funded and includes a significant increase in scope over the base contract. The $34.2 million option now brings the amount exercised to approximately $70.0 million, with approximately $57.0 million of options remaining in the final option year.
Globecomm will provide satellite earth stations and services that leverage the Company's global service network by providing voice, video, and data services in the Company's rapidly growing managed network service businesses.
As a valued added offering, Globecomm will offer the customer life cycle services supported by a global network of qualified technicians enabling a highly professional, technical and responsive support handling activities such as implementation, preventive, and corrective maintenance, and a full range of 24 x 7 technical support services. These services include engineering support, equipment, complete with installation and maintenance to multiple locations in the Middle East, Africa, Asia, and certain Pacific and Caribbean Islands.
Bill Raney, Senior Vice President of Globecomm Systems Inc., said: "This is another step toward fulfilling the Globecomm vision to remain the premier services provider supporting our customers operating in the far outreaches of the globe."
Keith Hall, President and Chief Operating Officer of Globecomm Systems Inc., said: "The extension of this contract is a tremendous example of our ability to provide a full range of Managed Network Services. Globecomm prides itself in maintaining and building upon strong customer relationships. We look forward to continued expansion of this partnership in the years to come."
About Globecomm Systems
Globecomm Systems Inc. provides end-to-end value-added satellite-based communication products, services and solutions by leveraging its core satellite ground segment systems and network capabilities, with its satellite communication services capabilities. The products and services Globecomm offers include pre-engineered products, systems design and integration services, managed network services and life cycle support services. Globecomm's customers include communications service providers, commercial enterprises, broadcast and other media and content providers and government and government-related entities.
Based in Hauppauge, New York, Globecomm Systems also maintains offices in Washington, DC, Maryland, New Jersey, the Netherlands, Hong Kong, Germany, Singapore, the United Arab Emirates and Afghanistan.
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements are based on management's current expectations and observations. You should not place undue reliance on our forward-looking statements because the matters they describe are subject to certain risks, uncertainties and assumptions that are difficult to predict. Our forward-looking statements are based on the information currently available to us and speak only as of the date of this press release. Over time, our actual results, performance or achievements may differ from those expressed or implied by our forward-looking statements, and such differences might be significant and materially adverse to our security holders.
We have identified some of the important factors that could cause future events to differ from our current expectations and they are described in our most recent Annual Report on Form 10-K and most recent Quarterly Report of Form 10-Q, including without limitation under the captions ''Risk Factors'' and ''Management's Discussion and Analysis of Financial Condition and Results of Operations,'' and in other documents that we may file with the SEC, all of which you should review carefully. Please consider our forward-looking statements in light of those risks as you read this press release.
Source: Globecomm Systems Inc.
Globecomm Systems Inc.David Hershberg, 631-231-9800
Chairman and Chief Executive Officer
or
Matthew Byron, 631-457-1301
Vice President, Corporate Office
ir@globecommsystems.com
www.globecommsystems.com