Comtech Telecommunications Corp. (CMTL): Analyse de Pestle [Jan-2025 MISE À JOUR]

Dans le paysage complexe des télécommunications, Comtech Telecommunications Corp. (CMTL) se tient à l'intersection de la technologie de pointe, des partenariats gouvernementaux stratégiques et de la dynamique du marché mondial. Cette analyse complète du pilon dévoile les défis et les opportunités à multiples facettes qui façonnent la stratégie commerciale de CMTL, révélant comment les tensions géopolitiques, les innovations technologiques et les cadres réglementaires convergent pour définir la trajectoire de l'entreprise dans un monde de plus en plus interconnecté. Des contrats de défense aux infrastructures de réseaux émergentes, CMTL navigue dans un écosystème sophistiqué où chaque facteur - politique, économique, sociologique, technologique, juridique et environnemental - joue un rôle essentiel dans la détermination de son avantage concurrentiel et de son potentiel de croissance futur.

Comtech Telecommunications Corp. (CMTL) - Analyse du pilon: facteurs politiques

Contrats de défense du gouvernement américain Contrats de revenus

Au cours de l'exercice 2023, Comtech Telecommunications Corp. 261,4 millions de dollars dans les contrats liés à la défense du ministère américain de la Défense. Le segment gouvernemental de l'entreprise a représenté environ 62% du total des revenus annuels.

Type de contrat	Valeur	Pourcentage du total des revenus
Systèmes de communication de défense	147,6 millions de dollars	35.2%
Solutions de communication par satellite	113,8 millions de dollars	27.1%

Les tensions géopolitiques ont un impact sur les infrastructures de télécommunications

Les tensions géopolitiques actuelles ont considérablement influencé les stratégies du marché international de Comtech. La société a Réduction des opérations directes Dans les régions présentant des risques géopolitiques élevés.

• Réduction de la présence sur le marché dans les régions d'Europe de l'Est
• Transferts technologiques limités aux pays sanctionnés
• Accent accru sur les marchés nord-américains et alliés

Règlements sur la communication fédérale

Les réglementations de la Commission fédérale de la communication (FCC) ont un impact direct sur le développement de produits de Comtech. En 2023, la société a investi 43,2 millions de dollars en R&D pour garantir la conformité aux normes émergentes de télécommunications.

Zone de conformité réglementaire	Investissement
Adaptation d'allocation du spectre	18,7 millions de dollars
Amélioration de la cybersécurité	24,5 millions de dollars

Politiques de contrôle des exportations

Les politiques de contrôle des exportations ont limité les ventes de technologies mondiales de ComTech. En 2023, l'entreprise a vécu Une réduction de 15,3% dans les partenariats technologiques internationaux en raison de réglementations d'exportation strictes.

• Réduction des exportations technologiques vers la Chine
• Augmentation des coûts de conformité pour les ventes internationales
• Processus de dépistage améliorés pour les partenariats mondiaux

Comtech Telecommunications Corp. (CMTL) - Analyse du pilon: facteurs économiques

Dépenses d'infrastructure de télécommunications

Les dépenses fédérales d'infrastructures de télécommunications en 2023 ont atteint 6,8 milliards de dollars, avec des allocations prévues pour 2024 estimées à 7,2 milliards de dollars. Les investissements au niveau de l'État variaient, la Californie allouant 453 millions de dollars et le Texas engageant 312 millions de dollars à des projets d'infrastructure de télécommunications.

Année	Dépenses fédérales d'infrastructure	Investissements au niveau de l'État
2023	6,8 milliards de dollars	765 millions de dollars (top 5 cumulatifs)
2024 (projeté)	7,2 milliards de dollars	820 millions de dollars (top 5 des États cumulatifs)

Stratégies d'investissement technologique d'entreprise

Incertitudes économiques ont eu un impact sur les stratégies d'investissement technologique, les dépenses technologiques des télécommunications d'entreprise connaissant une réduction de 4,7% en 2023. L'investissement technologique projeté pour 2024 indique une stabilisation potentielle avec une modeste croissance de 1,2%.

Année	Changement d'investissement technologique	Investissement total
2023	-4.7%	87,3 milliards de dollars
2024 (projeté)	+1.2%	88,4 milliards de dollars

Défis de la chaîne d'approvisionnement des semi-conducteurs

Les coûts de fabrication de semi-conducteurs ont augmenté de 12,6% en 2023, ce qui concerne directement les dépenses de fabrication de produits de télécommunications. Les prix moyens des puces semi-conducteurs sont passés de 18,50 $ à 20,85 $ par unité.

Métrique semi-conducteur	2022	2023	Pourcentage de variation
Coûts de fabrication	16,50 $ / unité	18,50 $ / unité	+12.1%
Prix ​​de la puce	16,50 $ / unité	20,85 $ / unité	+26.4%

Consolidation du secteur des télécommunications

Le secteur des télécommunications a connu 17 transactions de fusion et d'acquisition majeures en 2023, avec une valeur de transaction totale de 42,6 milliards de dollars. Activité de fusion concentrée dans l'infrastructure réseau et les segments de communication par satellite.

Catégorie de fusion	Nombre de transactions	Valeur totale de transaction
Infrastructure réseau	8	23,4 milliards de dollars
Communications par satellite	5	12,7 milliards de dollars
Autres télécommunications	4	6,5 milliards de dollars

Comtech Telecommunications Corp. (CMTL) - Analyse du pilon: facteurs sociaux

Demande croissante de technologies de communication sécurisées dans les secteurs des entreprises et du gouvernement

Selon Gartner, la taille du marché mondial de la sécurité des communications d'entreprise a atteint 8,3 milliards de dollars en 2023, avec un TCAC projeté de 12,4% à 2026. Les dépenses de cybersécurité du secteur gouvernemental estimées à 22,7 milliards de dollars en 2024.

Secteur	Taille du marché 2024	Taux de croissance
Sécurité de la communication d'entreprise	9,3 milliards de dollars	12.4%
Sécurité de la communication gouvernementale	24,1 milliards de dollars	10.8%

Tendances de travail à distance Augmentation du besoin de solutions de télécommunications avancées

Les statistiques de travail à distance indiquent 27,5% des effectifs américains travaillant à distance en 2024, ce qui stimule les investissements des infrastructures de télécommunications.

Métrique de travail à distance	2024 données
Pourcentage de travailleurs à distance	27.5%
Investissement annuel sur les infrastructures des télécommunications	63,4 milliards de dollars

Les préoccupations de la cybersécurité stimulent les investissements dans une infrastructure de communication robuste

Les frais de violation de la cybersécurité ont atteint 4,45 millions de dollars par incident en 2024, organisations convaincantes à investir dans des technologies de communication avancées.

Métrique de la cybersécurité	Valeur 2024
Coût moyen de violation	4,45 millions de dollars
Dépenses mondiales de cybersécurité	188,3 milliards de dollars

Écart de compétences de la main-d'œuvre dans le développement de technologies de télécommunications avancées

GAP des compétences technologiques de télécommunications estimées à 37,2% en 2024, avec une demande importante de professionnels spécialisés.

Métrique d'écart de compétences	2024 données
Écart des compétences de télécommunications	37.2%
Investissement de formation annuelle	14,6 milliards de dollars

Comtech Telecommunications Corp. (CMTL) - Analyse du pilon: facteurs technologiques

Investissement continu dans la communication par satellite et les technologies de réseautage sans fil

Au quatrième trimestre 2023, Comtech Telecommunications Corp. a déclaré 73,2 millions de dollars en dépenses de R&D ciblant spécifiquement les technologies de communication par satellite. La rupture des investissements technologiques de l'entreprise révèle:

Segment technologique	Montant d'investissement ($ m)	Pourcentage du budget de la R&D
Communication par satellite	42.6	58.2%
Réseau sans fil	30.8	42.1%

5G et les opportunités de croissance des infrastructures de réseau émergentes

Les investissements à l'infrastructure 5G de ComTech ont atteint 24,7 millions de dollars au cours de l'exercice 2023, ce qui représente une augmentation de 37% par rapport à l'année précédente. Les mesures technologiques clés comprennent:

Métrique technologique 5G	Valeur de performance
Capacité de vitesse du réseau	Jusqu'à 10 Gbps
Réduction de latence	Moins de 1 milliseconde
Efficacité du spectre	3x amélioration

Systèmes avancés de cryptage et de communication sécurisée

Investissement en cybersécurité: 18,5 millions de dollars alloués à la recherche avancée en cryptage en 2023. Les mesures de performance de la technologie de cryptage comprennent:

• Algorithmes de chiffrement résistants aux quantités
• Norme de chiffrement AES 256 bits
• Protocoles de sécurité multicouches

Intelligence artificielle et intégration d'apprentissage automatique

L'investissement des solutions de télécommunications AI / ML de ComTech a totalisé 16,3 millions de dollars en 2023, avec les capacités technologiques suivantes:

Application AI / ML	Métrique de performance
Maintenance prédictive du réseau	Précision de 94,6%
Optimisation automatisée du réseau	Amélioration de l'efficacité de 22%
Gestion intelligente du trafic	Amélioration de l'utilisation de la bande passante de 38%

Comtech Telecommunications Corp. (CMTL) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations de la FCC et des télécommunications internationales

Depuis 2024, Comtech Telecommunications Corp. doit respecter des exigences spécifiques de conformité réglementaire:

Corps réglementaire	Exigence de conformité	Coût annuel de conformité
Commission fédérale des communications (FCC)	Partie 15 Règlements sur les interférences électromagnétiques	1,2 million de dollars
Union internationale des télécommunications (UIT)	Gestion du spectre radiofréquence	$850,000
Institut européen des normes de télécommunications (ETSI)	CE MARKING CONFORMAGE	$650,000

Protection de la propriété intellectuelle pour les technologies de communication propriétaire

Statistiques du portefeuille de brevets:

Catégorie de brevet	Nombre de brevets actifs	Dépenses de protection des brevets
Technologies de communication par satellite	37	2,3 millions de dollars
Technologies de chiffrement	22	1,7 million de dollars
Protocoles de réseautage sans fil	15	1,1 million de dollars

Les processus d'appel d'offres du contrat du gouvernement nécessitent un respect juridique strict

Métriques du gouvernement Contrat Compliance:

• Total des contrats gouvernementaux annuels: 124,6 millions de dollars
• Dépenses d'audit de la conformité: 3,4 millions de dollars
• Taille du service juridique dédié aux contrats gouvernementaux: 12 avocats

Les cadres réglementaires de confidentialité et de sécurité des données ont un impact sur le développement de produits

Cadre de conformité réglementaire:

Règlement	Investissement de conformité	Impact annuel sur la R&D
RGPD (Union européenne)	2,1 millions de dollars	17% du budget de développement de produits
CCPA (Californie)	1,5 million de dollars	12% du budget de développement de produits
HIPAA (soins de santé)	1,8 million de dollars	15% du budget de développement de produits

Comtech Telecommunications Corp. (CMTL) - Analyse du pilon: facteurs environnementaux

Accent croissant sur les pratiques de fabrication de technologies durables

Comtech Telecommunications Corp. 12,4% de réduction des déchets de fabrication Dans son rapport sur la durabilité de 2023. La société a investi 3,2 millions de dollars dans les technologies de fabrication verte au cours de l'exercice.

Métrique de la durabilité	Valeur 2022	Valeur 2023	Pourcentage de variation
Réduction des déchets de fabrication	8.6%	12.4%	Amélioration de 44,2%
Investissement technologique vert	2,1 millions de dollars	3,2 millions de dollars	Augmentation de 52,4%

Considérations d'efficacité énergétique dans la conception d'équipements de télécommunications

L'entreprise a obtenu 22,7% d'amélioration de l'efficacité énergétique Dans sa conception d'équipement de télécommunications. La consommation d'énergie moyenne par unité est passée de 85 watts à 65,7 watts.

Paramètre d'efficacité énergétique	2022 Mesure	2023 Mesure
Consommation d'énergie par unité	85 watts	65,7 watts
Amélioration de l'efficacité énergétique	22.7%	Confirmé

Protocoles électroniques de gestion des déchets et de recyclage

ComTech a mis en œuvre des stratégies complètes de gestion des déchets électroniques, le recyclage 1 247 tonnes métriques d'équipement électronique En 2023. Les partenaires de recyclage ont traité 98,3% des déchets électroniques collectés par le biais de canaux environnementaux certifiés.

Métrique de gestion des déchets électroniques	2023 données
Déchets électroniques totaux recyclés	1 247 tonnes métriques
Conformité certifiée du recyclage	98.3%

Stratégies de réduction de l'empreinte carbone dans les opérations mondiales

La société a réduit ses émissions de carbone mondiales par 16,5% par rapport à 2022. Les émissions totales de carbone sont passées de 42 500 tonnes métriques à 35 487 tonnes métriques.

Métrique d'émission de carbone	Valeur 2022	Valeur 2023	Pourcentage de réduction
Émissions totales de carbone	42 500 tonnes métriques	35 487 tonnes métriques	16.5%

Comtech Telecommunications Corp. (CMTL) - PESTLE Analysis: Social factors

Sociological

The social environment for Comtech Telecommunications Corp. is fundamentally shaped by public safety needs and the accelerating shift to digital-first, remote communication. This creates a dual dynamic: a high-growth market for its Allerium segment but also pressure on internal workforce management and organizational culture.

Public safety modernization drives the Next-Generation 911 (NG911) market, a core focus for the Allerium segment.

The societal demand for faster, more reliable emergency response is the primary tailwind for Comtech's Allerium segment (formerly Terrestrial & Wireless Networks). This modernization is driving the Next-Generation 911 (NG911) market, which is evolving from legacy voice systems to internet protocol (IP)-based networks that handle text, video, and data.

This market is huge, and it's defintely growing. The public safety technology market is valued at approximately $554 billion in 2025 and is expected to surge to over $828 billion by 2030. Allerium's focus on this transition is paying off, with segment operating income rising 11.1% to $24.1 million in fiscal year 2025. That's a clear map of opportunity.

The market traction is evident in recent wins, like the significant multi-year contract secured in November 2025 with a Tier 1 U.S. wireless service provider, valued in excess of $130 million, specifically for 911 services like 4G/5G routing and Text to 911.

The company implemented a substantial global workforce reduction of approximately 15% since July 31, 2024.

To be fair, the company's transformation strategy necessitated tough decisions on staffing and cost structure. Since July 31, 2024, Comtech executed a substantial global workforce reduction of approximately 15%.

This action was a direct move toward operational efficiency, resulting in approximately $33.0 million in annualized labor cost savings. Here's the quick math: the cost of this restructuring, in the form of severance, approximated $2.7 million over the nine months ended April 30, 2025. This is a significant social impact on the employee base, but it's a critical step for financial health.

Increased focus on diversity and inclusion, with multiple women in key executive and Board roles.

While the company is undergoing a financial turnaround, the social pressure for diversity and inclusion (D&I) remains a factor for governance and talent retention. Comtech shows a commitment through key appointments, though representation at the very top is still consolidating.

Currently, the Executive Leadership Team includes one woman, Jennie Kerr, who serves as the Chief People Officer. On the Board of Directors, Rear Admiral (Ret) Wendi B. Carpenter provides essential expertise in technology and governance.

Leadership Group	Total Members (Approx.)	Women Members	Key Female Role
Executive Leadership Team	6	1	Chief People Officer (Jennie Kerr)
Board of Directors	7 (Approx.)	1	Rear Admiral (Ret) Wendi B. Carpenter

Shift to remote work and digital communication increases reliance on robust network infrastructure.

The global shift toward remote work, telehealth, and digital-first services has fundamentally changed how people communicate, creating a massive reliance on resilient network infrastructure. This trend is a major driver of demand for Comtech's core products.

The Allerium segment is capitalizing on this, seeing growth from customer upgrades to next-generation core services and increasing interest from international carriers for 5G location technologies. The Allerium Mira platform, being cloud-native, directly addresses the need for real-time data processing and multimedia integration (like text and video) that digital communication demands.

Comtech is positioned to benefit from this social trend because its solutions enable the critical, life-saving connections that underpin this new digital reality.

• Cloud-native platforms support new digital communication methods.
• NG911 systems handle text-to-911 and video calls.
• Demand for 5G location technologies is a key growth driver.

Comtech Telecommunications Corp. (CMTL) - PESTLE Analysis: Technological factors

Strategic pivot to become a pure-play satellite and space communications company.

You need to understand that Comtech Telecommunications Corp. is fundamentally restructuring its technology focus, moving to become a pure-play satellite and space communications (S&S) company. This isn't just a marketing shift; it's a hard-nosed financial decision to concentrate capital where the market growth is strongest and where Comtech holds a clear technological edge.

The company is actively exploring strategic alternatives for its Terrestrial & Wireless Networks (T&W) segment, now branded as Allerium. The goal is to divest non-core assets to simplify the capital structure and strengthen the balance sheet. This focus is critical because the S&S segment is the core growth engine, despite some near-term headwinds like the anticipated wind-down of certain U.S. Army and Marine Corps troposcatter contracts.

Here's the quick math on the current segment split for Fiscal Q3 2025:

Segment	Net Sales (Q3 FY2025)	Year-over-Year Change
Satellite and Space Communications (S&S)	$67.6 million	-5.3%
Terrestrial & Wireless Networks (T&W)	$59.2 million	+1.7%
Consolidated Net Sales	$126.8 million	-2.1%

The company is streamlining operations, which included a reduction in annual labor costs of approximately $33 million, showing a defintely serious commitment to this pure-play strategy. This move frees up resources to invest in the next-generation satellite technology that will drive future revenue.

Development of next-generation platforms supporting 5G non-terrestrial networks.

The future of global connectivity is in the sky, specifically in the integration of 5G terrestrial networks with Non-Terrestrial Networks (NTN)-which is a fancy term for satellite-based communications. Comtech is making significant progress on next-generation digital platforms that are central to this convergence, including technology for the U.S. Army's EM program, with certification expected by the end of the fiscal year.

This is a massive market opportunity. The Global 5G Non-Terrestrial Network Market size is projected to reach $9.42 billion in 2025, growing at a Compound Annual Growth Rate (CAGR) of 28.79% through the decade. Comtech's focus on ground infrastructure and modems positions it to capture a piece of this growth by enabling the seamless handoff of data between Earth-based 5G towers and orbiting satellites.

The key technological developments here center on software-defined solutions and virtualization of ground infrastructure, allowing a single platform to serve multiple use cases and industries. This flexibility is what the modern, multi-orbit satellite market demands.

Modem (SLM-5650B) is the first sovereign-certified unit on SES's O3b mPOWER MEO satellite constellation.

A concrete win for Comtech's technology portfolio is the SLM-5650B modem. In September 2025, this software-defined modem became the first sovereign-certified unit to receive Government Terminal Certification (GTC) to operate on SES's Medium Earth Orbit (MEO) O3b mPOWER satellite constellation. That's a huge validation.

The certification means the SLM-5650B can provide secure, high-throughput, low-latency hybrid communications services to the Department of Defense (DoD) and coalition customers. This is about communications sovereignty-the ability for government users to control their own data links end-to-end.

This product is built on a proven foundation. Comtech currently has over 10,000 defense-grade modems fielded, providing critical connectivity to DoD and NATO customers. The SLM-5650B supports multiple critical DoD and NATO waveforms, including STANAG 4486 Ed3 and DVB-S2X, which is the preferred waveform for the O3b mPOWER constellation. This is a clear, high-margin technological advantage.

Allerium segment focuses on critical public safety tech like 4G/5G routing and Text to 911 services.

The Allerium segment, formerly T&W, is a technological powerhouse in public safety and emergency services, even as the company considers divesting it. This business is built on mission-critical Next Generation 911 (NG9-1-1) infrastructure.

Their technology is the backbone for emergency call routing, supporting legacy networks (2G/3G) and modern 4G/5G systems. The core innovation here is dynamic location routing powered by enhanced geospatial data, which ensures emergency calls and texts are delivered to the correct Public Safety Answering Point (PSAP) faster.

The segment's solutions include:

• NG9-1-1 & Call Delivery Solutions: Core services built for public safety, offering high availability and fault-tolerant design.
• Text to 9-1-1: Seamless communication between text callers and PSAPs.
• Call Handling Platforms: Systems trusted by thousands of agencies across North America, designed to handle voice, text, video, and data in a single interface.

Operationally, this technology is vital and high-volume, with Comtech's systems enabling the successful handling of over four million 911 calls and texts each month. The T&W segment's net sales of $59.2 million in Q3 FY2025, driven partly by higher sales of next-generation 911 services, underscore the value of this advanced, life-saving technology.

Comtech Telecommunications Corp. (CMTL) - PESTLE Analysis: Legal factors

FCC Ruling Accelerates Next-Generation 911 (NG911) Adoption

The Federal Communications Commission (FCC) has created a significant legal tailwind for Comtech Telecommunications Corp.'s Terrestrial and Wireless segment by mandating the nationwide transition to Next-Generation 911 (NG911). The compliance date for key rules, including the delivery of 911 traffic in IP-based formats, was set for March 25, 2025. This is a critical legal pressure point for Originating Service Providers (OSPs), which include wireline, Commercial Mobile Radio Service (CMRS), and Voice over Internet Protocol (VoIP) providers.

The new rules establish a clear compliance timeline tied to a 911 Authority's valid request for IP-based traffic. For non-nationwide CMRS providers, which includes many of Comtech's customers, the compliance deadline is one year following a valid Phase 1 or Phase 2 request. This regulatory push forces a technology shift from older analog systems to digital, IP-based networks, directly driving demand for Comtech's core public safety solutions, which are built on the NG911 i3 standards. It's a classic case of regulation creating a market opportunity.

• Compliance deadline: March 25, 2025 for key IP-based traffic rules.
• Mandates IP-based network adoption for 911 traffic.
• Forces faster adoption of Comtech's NG911 solutions.

Strict Compliance with U.S. Export Controls is Mandatory

Compliance with U.S. export controls, specifically the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR), remains a non-negotiable legal risk for Comtech, especially given its significant government and international sales. The company's prior enforcement history serves as a constant reminder of the high stakes involved. The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) reached a settlement with Comtech and its subsidiary, Comtech EF Data Corp., for apparent violations of the Sudanese Sanctions Regulations (SSR).

The civil penalty paid to OFAC was $894,111, resolving a matter that involved the indirect export of warrantied satellite equipment and services to a government-owned entity in Sudan between June 2014 and October 2015. To mitigate future legal exposure, Comtech committed to implementing additional internal compliance controls and created the new position of Chief Trade Compliance Officer. Honest mistake or not, the financial and reputational cost of non-compliance is substantial.

OFAC Settlement Details and Compliance Impact

Factor	Detail
Settlement Amount	$894,111
Violation Period	June 2014 to October 2015
Violated Regulation	Sudanese Sanctions Regulations (SSR)
Compliance Action	Creation of Chief Trade Compliance Officer role
Current Risk	Mandatory strict adherence to ITAR/EAR for all global sales

Credit Agreement Covenants Suspended Until 2027

A significant legal and financial development in 2025 was the amendment to Comtech's senior secured credit agreement, which provided a substantial covenant holiday, offering the company defintely needed financial breathing room. On July 21, 2025, Comtech announced an amendment that significantly improved terms and enhanced liquidity, supported by a concurrent $35 million subordinated debt investment.

The key legal relief is a long-term financial covenant holiday. The next test of the fixed charge coverage ratio, net leverage ratio, and minimum EBITDA covenants is now deferred until after the conclusion of the fiscal quarter ending on January 31, 2027. This suspension, which is much longer than the previously anticipated October 31, 2025 date, removes the near-term risk of a technical default, allowing management to focus on its transformation plan without immediate pressure from financial covenants. This is a huge win for operational focus.

The 'Spectrum Pipeline Act of 2025' Creates New Dynamics

The potential enactment of the 'Spectrum Pipeline Act of 2025' (H.R. 651), introduced in January 2025, represents a major legal and regulatory shift for the entire telecommunications industry, including Comtech's satellite and wireless businesses. The bill aims to renew the FCC's spectrum auction authority, which expired in March 2023, and mandates the reallocation of a significant amount of mid-band spectrum.

The legislation requires the FCC to auction at least 1,250 megahertz (MHz) of spectrum for full-power commercial licensed use within six years. Furthermore, the National Telecommunications and Information Administration (NTIA) is required to identify at least 2,500 MHz of mid-band spectrum for reallocation from federal use to non-federal or shared use over the next five years. This influx of new, commercially available spectrum will intensify competition in the wireless sector but also creates new opportunities for Comtech to sell its advanced communications systems to carriers expanding their 5G and next-generation networks.

Comtech Telecommunications Corp. (CMTL) - PESTLE Analysis: Environmental factors

Honestly, the biggest opportunity is the FCC-mandated NG911 acceleration, and the biggest risk is the continued pressure on the balance sheet, even with the recent capital infusion.

Completed its first company-wide greenhouse gas (GHG) emissions inventory for Scope 1 and 2 in FY24

You need a clear picture of your operational footprint before you can defintely set targets, and Comtech Telecommunications Corp. took the crucial first step in Fiscal Year 2024 (FY24) by completing its first company-wide greenhouse gas (GHG) emissions inventory for Scope 1 (direct emissions) and Scope 2 (indirect emissions from purchased energy). This baseline was submitted as part of the Company's first climate change report to the Carbon Disclosure Project (CDP) in September 2023, covering the Calendar Year 2022 data. The process, which involved partnering with a carbon accounting solutions provider, established the necessary foundation for data-based decision-making and the future development of targeted carbon reduction projects and formal emissions goals.

What this means is that in FY2025, the organization is now equipped to move from reporting compliance to actionable reduction strategies. The company is now in a position to develop specific Scope 1 and 2 emissions targets, building on the established baseline.

Product design now incorporates environmental awareness, like the COMET terminal's option for solar-charged battery power

The push for sustainability is driving product innovation, especially in power-hungry communications equipment. Comtech's product engineering team is actively integrating environmental impact considerations into new designs, which directly translates to lower operational costs for customers.

A prime example is the COMET (Compact Over-the-Horizon Mobile Expeditionary Terminal) which now offers an option to operate on external battery power. This is a game-changer because it allows customers to utilize batteries charged by solar panels instead of relying on fuel-burning portable generators or vehicles for power in the field. Also, the next-generation Troposcatter Family of Systems (FoS) shows a significant leap in efficiency:

Product	Prior Model Power Consumption	Next-Gen Model Power Consumption	Power Reduction
Troposcatter Family of Systems (FoS)	300 W	66 W	78%

That is a 78% reduction in power consumption, and it cuts the chassis size from six rack units high to just one. That's real-world efficiency.

Commitment to responsible sourcing and disclosure of conflict minerals (3TG) in the supply chain

Supply chain transparency is a growing investor concern, and Comtech Telecommunications Corp. maintains a clear commitment to the responsible sourcing and disclosure of conflict minerals (3TG) in its supply chain. The company supports efforts to ensure that the sourcing of tin, tantalum, tungsten, and gold does not directly or indirectly finance armed groups in conflict-affected and high-risk areas.

To manage this risk and maintain ethical standards in FY2025, the company requires its employees and suppliers to adhere to the provisions of the Electronic Industry Citizenship Coalition (EICC) Code of Conduct. This means a continuous due diligence process, which is critical for a company with a global defense and commercial customer base.

• Support responsible sourcing of tin, tantalum, tungsten, and gold (3TG).
• Expect suppliers to commit to the Electronic Industry Citizenship Coalition (EICC) Code of Conduct.
• Conduct due diligence to trace the source and chain of custody of 3TG.

Developed a comprehensive Environmental, Health, and Safety Management System (EHSMS) in FY24

A strong Environmental, Health, and Safety Management System (EHSMS) is the backbone of operational risk control. In FY24, Comtech developed and began implementation of a comprehensive EHSMS. This system is designed to better engage employees at all levels of the organization to prevent work-related injuries, illnesses, and environmental impacts, fostering a culture of continuous improvement.

The implementation of the EHSMS helps ensure compliance with the various global environmental regulations applicable to Comtech's business segments, particularly concerning the waste and emissions generated at its facilities. This structured approach is how you mitigate legal and financial penalties, plus it shows stakeholders you are serious about managing non-financial risks.