COMTECH TELECOMMUNICATIONS CORP DE
For the period ended Jul 31, 2024. Filed Oct 30, 2024.
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FY2024 · Filed Oct 30, 2024
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Item 2. PROPERTIES
We consider our facilities to be well maintained and adequate for current and planned production requirements. All of our manufacturing facilities, including those that serve the military market, must comply with stringent customer specifications. We employ formal quality management programs and other training programs, including the International Standard Organization’s quality procedure registration programs.
Historically, we have not owned any material properties or facilities and have relied upon a strategy of leasing. We do not currently own any material properties. The following table lists our primary leased facilities at July 31, 2024:
| Location · Property Type · Square Footage · Lease Expiration | ||||
|---|---|---|---|---|
| Satellite and Space Communications | ||||
| Chandler, Arizona | A | Manufacturing and Engineering and Corporate Headquarters | 146,000 | July 2036 |
| Orlando, Florida | B | Manufacturing and Engineering | 99,000 | April 2026 |
| Hampshire, UK | C | Manufacturing and Engineering | 77,000 | November 2030 |
| Santa Clara, California | D | Manufacturing and Engineering | 47,000 | April 2026 |
| Cypress, California | E | Support, Engineering and Sales | 28,000 | July 2025 |
| Tempe, Arizona | A | Manufacturing and Engineering | 20,000 | January 2027 |
| Various facilities | F | Support, Engineering and Sales | 19,000 | Various |
| Plano, Texas | E | R&D and Engineering | 12,000 | August 2025 |
| Saint-Laurent, Canada | G | Manufacturing, Engineering, Sales and General Office | 12,000 | June 2029 |
| Terrestrial and Wireless Networks | ||||
| Seattle, Washington | H | Network Operations, R&D, Engineering and Sales | 30,000 | October 2033 |
| Stoughton, Massachusetts | I | Network Operations | 26,000 | March 2025 |
| Annapolis, Maryland | J | Support, Engineering and Sales | 17,000 | July 2026 |
| Gatineau, Canada | K | Network Operations, R&D, Engineering, Sales and General Office | 16,000 | April 2028 |
| Chicago, Illinois | K | General Office | 4,000 | September 2024 |
| Corporate | ||||
| Melville, New York | L | General Office | 9,600 | August 2027 |
| Annapolis, Maryland | J | General Office and Common Areas | 2,000 | July 2026 |
| Total Square Footage | 564,600 | |||
A. To support our long-term business goals, we entered a 15-year lease for a new 146,000 square foot high-volume technology manufacturing facility in Chandler, Arizona. In fiscal 2023, we completed the relocation of certain of our satellite ground infrastructure production facility operations to this new facility, which reduced our Tempe, Arizona footprint to 20,000 square feet through January 2027. The Chandler, Arizona facility utilizes state-of-the-art design and production techniques, including analog, digital and RF microwave production, hardware assembly and full-service engineering. In fiscal 2024, this location became our new corporate headquarters.
B. Our Satellite and Space Communications segment engineers and manufactures our over-the-horizon microwave troposcatter systems and mission-critical satellite equipment in a leased facility in Orlando, Florida.
C. Our Satellite and Space Communications segment currently leases two manufacturing facilities in Hampshire (Basingstoke), United Kingdom, where we previously manufactured high precision full motion fixed and mobile X/Y satellite tracking antennas. As a result of our fourth quarter fiscal 2024 decision to exit this product line, we are currently in discussions with each landlord regarding our exit and termination of such facility leases.
D. Our Satellite and Space Communications segment manufactures certain amplifiers in a leased manufacturing facility located in Santa Clara, California.
E. Our Satellite and Space Communications segment maintains office space in Cypress, California and Plano, Texas used primarily for R&D, engineering, sales and customer support.
F. Our Satellite and Space Communications segment leases an additional five facilities, four of which aggregate 16,000 square feet and are located in the U.S. with the remaining facility aggregating 3,000 square feet located in India. All are primarily utilized for engineering, sales, software development, customer support, and general office use.
G. Our Satellite and Space Communications segment maintains office space in Saint-Laurent, Canada, used primarily for sales, engineering, manufacturing and general office use.
H. Our Terrestrial and Wireless Networks segment maintains office space in Seattle, Washington used primarily for servicing and hosting our VoIP and VoWiFi E911 and NG-911 services, and related emerging technologies.
I. Our Terrestrial and Wireless Networks segment maintains office space in Stoughton, Massachusetts used primarily for servicing certain of our state and local municipality NG-911 customers.
J. Our Terrestrial and Wireless Networks segment maintains office space in Annapolis, Maryland used primarily for the design and development of our software-based systems and applications and network operations for our Terrestrial and Wireless Networks segment.
K. Our Terrestrial and Wireless Networks segment maintains office space in Gatineau, Canada and Chicago, Illinois that are utilized for network operations, R&D, engineering, sales of our public safety and location technology solutions and general office use. We exited our Chicago, Illinois office in September 2024. Our facility in Gatineau, Canada is subject to expropriation by the City of Gatineau and we expect to exit this facility and enter into a new lease agreement for an alternate facility in calendar 2025.
L. Our Unallocated segment maintains general office space in a building complex located in Melville, New York for certain company-wide functions.
The terms for all of our leased facilities are generally for multi-year periods and we believe that we will be able to renew these leases or find comparable facilities elsewhere.
In fiscal 2024, as part of the divestiture of our solid-state RF microwave high power amplifiers and control components product line, we no longer lease the 45,000 square foot engineering and manufacturing facility in Melville, New York or the 8,000 square foot facility in Topsfield, Massachusetts.
As part of our environmental related initiatives, we were able to reduce our total company-wide square footage of our various facilities for a total three-year reduction of 288,000 sq. ft. or 33.8%.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.