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|Globecomm Receives an Increased Scope Under a Multi-Year Contract with a Major U.S. Government Prime Contractor|
Contract Total Now $152 Million
HAUPPAUGE, N.Y., Mar 16, 2011 (BUSINESS WIRE) -- Globecomm Systems Inc. (NASDAQ: GCOM), a leading global provider of communications 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 five-year contract from a major U.S. Government prime contractor. During the first four years of the contract $95.0 million has been authorized by the customer. The customer has now exercised its option to authorize $57 million for the fifth contract year, bringing the contract total to $152 million.
Each option year requires incremental funding and includes additional options to increase the scope of work. This $57 million option is fully funded and includes a significant increase in scope over the base contract.
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 example of Globecomm's continued commitment to the US Government and the foreign service community."
Keith Hall, President and Chief Operating Officer of Globecomm Systems Inc., said: "The scope of this contract exhibits the full breadth of Globecomm's capabilities as a communication solution provider. We are proud of our team which continues to provide a high level of quality service. This contract is a great example of how we can grow with our customers. The partnership continues to strengthen and we look forward to supporting this customer for many years to come."
About Globecomm Systems
Globecomm Systems Inc., or Globecomm, is a leading global provider of satellite-based managed network solutions. Employing our expertise in emerging communication technologies we are able to offer a comprehensive suite of system integration, system products, and network services enabling a complete end-to-end solution for our customers. We believe our integrated approach of in-house design and engineering expertise combined with a world-class global network and our 24 by 7 network operating centers provides us a unique competitive advantage. We are now taking this value proposition to selective vertical markets, including government, wireless, media, enterprise, and maritime. As a network solution provider we leverage our global network to provide customers managed access services to the United States Internet backbone, video content, the public switched telephone network or their corporate headquarters, or government offices. We currently have customers for which we are providing such services in the United States, Europe, South America, Africa, the Middle East, and Asia.
Based in Hauppauge, New York, Globecomm Systems also maintains offices in Maryland, New Jersey, Virginia, the Netherlands, South Africa, 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 difference 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.
For Globecomm Government information:
Globecomm provides specialized communications products to support its global service offerings for media, wireless, government, maritime and enterprise customers.
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