Comtech: 3 Key Takeaways for Long-Term Investors
Comtech agreed to sell its Satellite and Space Communications business for $157.5 million to focus on its public safety technology segment, Allerium. The divestiture will generate $128.3 million in net proceeds to repay senior debt. Allerium operates in Next Generation 9-1-1 emergency communications with $520 million in funded backlog and 80% recurring revenue. The company achieved positive operating cash flow of $25 million in fiscal 2026 after seven quarters of cash burn, demonstrating improved operational discipline.