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|Globecomm Awarded Two Contracts From US Government Customers Valued at $12.8 Million; Options Bring Potential Total Contract Values up to $66.6 Million|
HAUPPAUGE, N.Y., Sep 08, 2011 (BUSINESS WIRE) --
Globecomm Systems Inc. (NASDAQ: GCOM), a leading global provider of communications solutions and services, announced today that the Company has been awarded two contracts from the US Government customers valued at $12.8 million. One contract includes options, which if exercised would bring the total contract value up to $61.3 million or both contracts up to $66.6 million. The Company anticipates the majority of the revenue on these contracts being recognized in the current fiscal year ending June 30th 2012.
Under the terms of the first contract, Globecomm will provide program management and related services for delivery of advanced satellite modem technology. Under the second contract Globecomm will provision satellite modem equipment and related services.
Thomas Coyle, Senior Vice President and General Manager of Globecomm Systems Inc., said: "We are very pleased with these new awards, building upon our recent awards for management and provision of advanced satellite communication solutions for several US Government customers. While the competitive landscape for these new procurements dictated a reduction from our normally demonstrated margins, we are excited to have the opportunity to continue as major supplier to the US Government in the latest modem technology."
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 Investor Relations:
Globecomm provides specialized communications products to support its global service offerings for media, wireless, government, maritime and enterprise customers.
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