Yahoo Finance Comtech (CMTL) Joins DIFI, Boosts Innovation in Space Industry
Comtech Telecommunications Corp. CMTL recently announced its entry in the Digital Intermediate Frequency Interoperability (“DIFI”) Consortium. With a long history of supporting new standards and introducing new satellite technologies in the global market, the latest move to be part of this prestigious association comes as a major advantage.
DIFI Consortium is an independent space industry group that bolsters the digital transformation of satellite and related industries. The industries capitalize on an open, interoperable Digital IF/RF standard that replaces the natural interoperability of analog IF signals and helps prevent vendor lock-in. It promotes standards in satellite application areas, including remote sensing, satellite communications, and earth observation.
DIFI Consortium boasts a growing roster of premier organizations in the space industry. Some of the founding members of this association are Kongsberg Satellite Services AS, Intelsat Corp., Hawkeye 360, and the U.S. Navy. Currently, DIFI is in the process of implementing administrative structures that underscore the importance of interoperability in satellite networks. It is also focused on recruiting additional member companies that have a keen interest in space networks.
The DIFI Consortium is focused on developing a new standard for a digital interface, which will enable users to connect digital baseband equipment and RF or edge devices. It will allow lossless switching between antennas and geographically diverse systems along with the usage of low-cost interconnect devices. This will help in reducing costs to a large extent.
Comtech is a leading innovator of satellite technology, and satellite connectivity and standards. The addition of this communications equipment company to DIFI is likely to contribute to the digital transformation of innovative technologies for the benefit of the space industry.
Recently, private equity firms, White Hat Capital Partners LP and Magnetar Capital, had invested $100 million to revamp and boost Comtech’s growth strategy and leadership transition plan. Per the deal, the investment entities will initially purchase $100 million of convertible preferred stock. This will then be converted into shares of Comtech valued at $24.50 per share. This is subject to an adjustment of $26.00 per share based on Comtech's FY22 financial performance.
Comtech has created a niche market for highly secure wireless solutions to defend global security and improve public safety. The company continues to provide market-leading products for messaging, location, and deployable wireless communications. It offers services to integrate networks, servers, gateways and intelligent peripherals, and provides transmission responses to users.
Customers depend on Comtech’s commercial wireless applications, which are based on innovative mobile cloud-computing services like public safety solutions, hyper-local search, workforce tracking, social applications, and telematics and navigation. Federal government agencies also depend on its cybersecurity expertise, professional consulting services and highly secure deployable satellite solutions for mission-critical communications.
Comtech currently has a Zacks Rank #4 (Sell). Its shares have gained 49.2% compared with the industry’s growth of 16.3% in the past year.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Clearfield, Inc. CLFD is a better-ranked stock in the industry, sporting a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised 8.8% upward over the past 30 days.
Clearfield delivered a trailing four-quarter earnings surprise of 50.8%, on average. It has catapulted 194.3% in the past year.
Harmonic, Inc. HLIT carries a Zacks Rank #2 (Buy). The consensus estimate for current-year earnings has been revised 23.1% upward over the past 30 days.
Harmonic delivered a trailing four-quarter earnings surprise of 61.1%, on average. The stock has appreciated 65.4% in the past year. HLIT has a long-term earnings growth expectation of 15%.
Qualcomm Incorporated QCOM is another solid pick for investors, carrying a Zacks Rank #2. The consensus estimate for current-year earnings has been revised 13.9% upward over the past 30 days.
Qualcomm delivered a trailing four-quarter earnings surprise of 11.2%, on average. It has returned 13.3% in the past year. QCOM has a long-term earnings growth expectation of 17.5%.
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