Esports Entertainment Group Partners with Hall of Fame Resort and Entertainment Company to Become the Exclusive Esports Provider at the Hall of Fame Village Powered by Johnson Controls

Newark, New Jersey–(Newsfile Corp. – July 9, 2021) – Esports Entertainment Group, Inc. (NASDAQ: GMBL) (NASDAQ: GMBLW), an esports entertainment and online gambling company, and Hall of Fame Resort and Entertainment Company (“HOFV”) (NASDAQ: HOFV) (NASDAQ: HOFVW), the only resort, entertainment and media company centered around the power of professional football and the owner of the Hall of Fame Village powered by Johnson Controls (the “Destination”), today announced a partnership that will bring esports to the Destination.

Per terms of the partnership, Esports Entertainment Group will be the Hall of Fame Village powered by Johnson Controls’ official esports provider and will operate a 7,000-square-foot Helix eSports entertainment center that will be located in the retail promenade at the Destination, joining Topgolf Swing Suites and Don Shula’s, among others. The esports center, which is slated to open in mid-2022, will serve as an entertainment hub where gamers can socialize, practice, compete and learn through a variety of esports activities and events. This facility enables the HOFV to benefit from the strong demand for esports worldwide. In addition to the location, this new partnership allows for the consideration of additional growth in several other business lines, including the potential for esports betting and fantasy sports betting as legislators continue to entertain the opportunity to legalize sports betting within Ohio over the next few months.

“We are excited to work with HOFV to bring esports to the Hall of Fame Village,” said Grant Johnson, CEO of Esports Entertainment Group. “This partnership places our brand in front of professional football fans globally and will place a Helix eSports center right in Canton. It also aligns extremely well with our recent strategic push into Ohio, which gained momentum in recent months through our partnership with the Cleveland Cavaliers as well as last month’s testimony in front of the Ohio State Senate Select Committee on Gaming by our CFO Dan Marks and VP of Strategy Jeff Cohen as advocates for the esports industry.”

“With the popularity of esports and its continued upwards trajectory, we are thrilled to partner with the highly respected EEG to offer fans a new state-of-the-art facility at the Village,” said Michael Crawford, President & CEO of HOFV. “Having an EEG-powered esports complex as part of our development on campus adds another compelling opportunity for gaming enthusiasts and guests to engage in virtual environments as well as offering us the ability to draw in fans from all over the world – both in person and virtually – providing us with strategic growth opportunities within our Company’s gaming vertical.”

Helix eSports will feature 80 high-end PCs, both next generation console systems (Xbox Series X and Playstation5) and other leading gaming and computing equipment, including virtual reality. It will be open for casual gameplay, allowing the Destination’s guests to socialize with friends while gaming in addition to future planned competitive tournaments and leagues. Additionally, there will be capacity for community and educational events meant to empower the next generation of gamers with equitable access to technology and STEM education.

About Hall of Fame Resort & Entertainment Company

Hall of Fame Resort & Entertainment Company (NASDAQ: HOFV) (NASDAQ: HOFVW) is a resort and entertainment company leveraging the power and popularity of professional football and its legendary players in partnership with the Pro Football Hall of Fame. Headquartered in Canton, Ohio, the Hall of Fame Resort & Entertainment Company is the owner of the Hall of Fame Village powered by Johnson Controls, a multi-use sports, entertainment and media destination centered around the Pro Football Hall of Fame’s campus. Additional information on the Company can be found at www.HOFREco.com.

About Esports Entertainment Group

Esports Entertainment Group is a full stack esports and online gambling company fueled by the growth of video-gaming and the ascendance of esports with new generations. Our mission is to help connect the world at large with the future of sports entertainment in unique and enriching ways that bring fans and gamers together. Esports Entertainment Group and its affiliates are well-poised to help fans and players to stay connected and involved with their favorite esports. From traditional sports partnerships with professional NFL/NHL/NBA/FIFA teams, community-focused tournaments in a wide range of esports, and boots-on-the-ground LAN cafes, EEG has influence over the full-spectrum of esports and gaming at all levels. The Company maintains offices in New Jersey, the UK and Malta. For more information visit www.esportsentertainmentgroup.com.

FORWARD-LOOKING STATEMENTS

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

Contact:

U.S. Investor Relations
RedChip Companies, Inc.
Dave Gentry
407-491-4498

[email protected]

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Global Demand for IT and Business Services Continues Upward Surge in Q2, ISG Index™ Finds

Global combined ACV, at record $19.1 billion, hits new high for
third straight quarter

Cloud-based as-a-service spend at record $11.2 billion, up 38%

Managed services also reaches new quarterly high of $7.9
billion, up 24%

ISG raises its 2021 forecasts for both as-a-service and managed
services

STAMFORD, Conn.–(BUSINESS WIRE)– With COVID-19 accelerating digital transformation and the move to the cloud, global demand for technology and business services has reached a new record for the third straight quarter, the latest state-of-the industry report from Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, finds.

Data from the ISG Index™, which measures commercial outsourcing contracts with annual contract value (ACV) of $5 million or more, show second-quarter ACV for the combined global market (both as-a-service and managed services) reached a record $19.1 billion, up 32 percent versus a soft quarter last year, when demand was sharply lower amid the onset of the pandemic. Global ACV this quarter was up 11 percent versus Q1, which, like the quarter before it, established a record high for the global IT and business services market.

“The global market today is driven by two mega-trends: the move to the cloud and digital transformation. COVID accelerated those moves by three to five years,” said Steve Hall, partner and president of ISG. “Business has clearly shifted, and if you’re lagging in your own strategy change, you may not be competitive much longer.”

The cloud-based as-a-service market reached a record $11.2 billion in the second quarter, up 38 percent off a soft compare, but with sequential growth of 13 percent. Infrastructure-as-a-service (IaaS) climbed to a record $8.2 billion, up 41 percent year-over-year and 15 percent quarter-over quarter. Software-as-a-service, at $3.0 billion, also establish a new quarterly high, up 31 percent versus last year and up 8 percent versus the prior quarter.

Managed services topped out at $7.9 billion, a new record, up 24 percent from last year and 8 percent from last quarter, fueled by a record 525 contracts signed during the second quarter, including four mega-deals exceeding $100 million of ACV. IT outsourcing (ITO) reached a record $6.1 billion, up 17 percent from last year and 5 percent over Q1, while business process outsourcing (BPO), at $1.8 billion, soared 52 percent over last year, and 23 percent sequentially.

For the first half of 2021, the combined global market generated a record $36.3 billion of ACV, up 20 percent. As-a-service, at a record $21.0 billion, was up 25 percent, and managed services, at a record $15.3 billion, was up 15 percent. Within as-a-service, IaaS reached a record $15.3 billion, up 28.5 percent, and SaaS hit a record $5.7 billion, up 15 percent. On the managed services side, ITO was at a record $12.0 billion, up 8 percent, and BPO reached $3.3 billion, up 48 percent.

Americas

The Americas region saw its combined ACV grow by double digits for the second straight quarter. Second-quarter combined ACV reached a record $9.5 billion, up 25 percent versus last year and 10 percent over the prior quarter. As-a-service ACV was a record $5.9 billion, up 33 percent year-over-year, with IaaS ACV of $3.9 billion, up 33 percent, and SaaS ACV of $1.9 billion, up 31 percent, both records. Managed services ACV, on record deal activity, advanced 14 percent, to a record $3.6 billion, with $2.6 billion of ITO ACV, up 5 percent, and $1.1 billion of BPO ACV, up 44 percent.

Europe, Middle East
and Africa (EMEA)

EMEA’s combined market reached $6.3 billion, up 31 percent from the prior year and 4 percent from the first quarter. As-a-service climbed 41 percent, to a record $2.3 billion, fueled by a 47 percent surge in IaaS, to a record $2.2 billion, and 27 percent growth in SaaS, to a record $722 million. Managed services, at $3.4 billion, was down 4 percent quarter over quarter, its second straight quarterly decline from a record Q4, although it was up 23 percent over a soft Q2 a year ago. Deal activity for the quarter was at a record high. ITO generated $2.8 billion of ACV, up 18 percent, and BPO produced $611 million of ACV, up 54 percent.

Asia Pacific

Asia Pacific surpassed combined-market ACV of $3 billion for the first time, climbing 59 percent over the prior year and 35 percent quarter-over-quarter, to a record $3.4 billion. ACV for as-a-service came in at a record $2.4 billion, up 50 percent over last year, on 52 percent growth in IaaS, to a record $2.1 billion, and 38 percent growth in SaaS, to a record $312 million. Managed services, meanwhile, turned in its best quarter in two years, with ACV soaring 87 percent, to a record $929 million. ITO reached a record $800.1 million, up 80 percent, and BPO rocketed 148 percent, to $129 million. Contract activity was at its highest level in the region in three years.

2021 Forecast

ISG is forecasting the market for cloud-based services (IaaS and SaaS) will grow 21 percent globally in 2021, up slightly from its 18 percent growth forecast last quarter. The firm also is raising its forecast for managed services growth to 9 percent, up from its prior forecast of 5 percent.

Commenting on the forecast, Hall said: “The demand environment and associated technology spend is very robust and shows no signs of slowing down. Right now, cloud is central to virtually every one of our client conversations. The debate is whether these are major structural shifts or COVID-related shifts. We believe the surge goes beyond pent-up demand and could signal the early stages of a longer-term cycle, with continuing strong investment in 5G, data center, compute, cloud provisioning and other business-transforming technologies.”

About the ISG Index™

The ISG Index™ is recognized as the authoritative source for marketplace intelligence on the global technology and business services industry. For 75 consecutive quarters, it has detailed the latest industry data and trends for financial analysts, enterprise buyers, software and service providers, law firms, universities and the media. In 2016, the ISG Index was expanded to include coverage of the fast-growing as-a-service market, measuring the significant impact cloud-based services are having on digital business transformation. ISG also provides ongoing analysis of automation and other digital technologies in its quarterly ISG Index presentations.

The 2Q21 Global ISG Index was presented during a conference call and webcast today. To listen to an audio replay of the call and view presentation slides, visit this webpage.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

Source: Information Services Group, Inc.

Decentralized Apps (“Dapps”) Using Blockchain to Change the Internet

 

What are Decentralized Apps?

Since Bitcoin launched more than a decade ago, blockchain protocols are constantly being developed and refined to unlock new functionalities and use cases. Now there is a budding industry of decentralized applications built on blockchain — everything from finance to gaming to web browsing to collecting art. Decentralized applications (also known as “dapps”) deliver services similar to those offered by typical consumer applications, but they use blockchain technology to provide users more control over their data by eliminating the need for centralized intermediaries to manage the data, thus making the service “decentralized. ”This new model for building massively scalable and profitable applications is emerging. Bitcoin paved the way with its cryptographically stored ledger, scarce-asset model, and peer-to-peer technology. These features provide a starting point for building a new type of software called decentralized applications, or dapps. dapps are gaining media coverage and will receive wider adaption than the most currently used web apps of today. dapps provide increased flexibility, transparency, resiliency and have a better-incentivized composition than existing software models. One of the main goals of the founders of Ethereum, (After Bitcoin, Ethereum is the second-largest cryptocurrency by market capitalization. It is the most actively used blockchain), was to make these kinds of apps easier to create. They still face challenges in trying to make that happen. Thousands of dapps exist today on Ethereum, ranging from a Twitter replacement to a decentralized virtual reality game. Developers hope Ethereum 2.0, a long-awaited upgrade that officially started being rolled out on Dec. 1, 2020, will ease these problems in the coming years.

 

Decentralized vs. Centralized Applications

A software application is software that defines a specific goal. There are millions of software applications currently in use, and the vast majority of web software applications follow a centralized server-client model. Some are distributed, and a select few novel ones are decentralized. Currently, centralized systems are the most widespread model for software applications. Centralized systems directly control the operation of the individual units and the flow of information from a single center. All individuals are directly dependent on the central power to send and receive information and to be commanded. Facebook, Amazon, Google, and every other mainstream service we use on the internet use this model. Let’s call these huge services “The Stacks.” The Stacks are useful because they provide a valuable service to us, but they have immense flaws, which we will touch upon at a different time.   While the internet channels huge amounts of data through massive, centralized servers, a blockchain represents hundreds or even thousands of machines that share the transactional burden over a distributed network. On the front end, decentralized apps and websites use the same technology to render a page on the internet. However, on the back end, dapps communicate with their respective blockchain networks through a “wallet,” which serves as a bridge to the blockchain ecosystem. Wallets manage your blockchain address and the cryptographic keys necessary to identify and authenticate yourself. Instead of using the HTTP protocol to communicate with the blockchain, dapp wallets trigger smart contracts that interact with the blockchain and execute transactions. A dapp, then, is the front-end user interface that communicates with smart contracts that transact on the blockchain, at which point the distributed network of nodes that makes up the blockchain validates and confirms the dapp data. While a well-designed decentralized application user experience may not seem so different from a web app, it differs from the latter in that it lacks servers, HTTP, and potential censorship.

 

Decentralized and Distributed

Distributed means computation is spread across multiple nodes instead of just one. Decentralized means no node is instructing any other node as to what to do. A lot of Stacks such as Google have adopted a distributed architecture internally to speed up computing and data latency. This means that a system can be both centralized and distributed. Yes, a system can be distributed and decentralized. Bitcoin is distributed because its timestamped public ledger, the blockchain, resides on multiple computers. It’s also decentralized because if one node fails, the network is still able to operate. That means that any app that uses a blockchain alongside other peer-to-peer tools can be distributed and decentralized. Centralized systems can be distributed as well. Software applications that are able to achieve decentralized consensus are a real innovation. The dapp space is an emerging field with a lot of smart people still experimenting with new models. Different developers have different opinions on what exactly a dapp is. Some developers think that having no central point of failure is all it takes and some think that there are other requirements.

 

How Does a Dapp Work?

Dapps built on Ethereum use blockchain technology under the hood to connect users directly. Blockchains are a way to tie together a distributed system, where each user has a copy of the records. With blockchains under the hood, users don’t have to go through a third party, meaning they don’t have to give up control of their data to someone else. By their nature, centralized entities have power of the data that flows into and out of their networks. For example, financial entities can stop transactions from being sent, and Twitter can delete tweets from its platform. dapps put users back in control, making these kinds of actions difficult if not impossible. There isn’t one agreed-upon definition of a dapp as it’s a relatively new concept. But the key characteristics of a dapp include: Open source: The code is public for anyone to look at, copy and audit. Decentralized: Dapps don’t have anyone in charge, so no central authority can stop users from doing what they want on the app. Blockchains: If there isn’t a central entity, then what’s holding the app together? Dapps use an underlying blockchain (such as Ethereum) to coordinate instead of a central entity. Smart contracts: Decentralized applications use Ethereum smart contracts, which automatically executes certain rules.Global: The goal is for anyone in the world to be able to publish or use these dapps.

 

What Are Dapps Used For?

The Ethereum white paper published by Ethereum creator Vitalik Buterin in 2013 splits dapps into three main types: Financial apps: These are applications where money is involved. Semi-financial apps: Decentralized apps that involve money, but also require another piece, such as data from outside the Ethereum blockchain. Other apps: Every other type of decentralized app developers are looking to create, including online voting and storage apps. What are the features of any profitable dapp should have? Open Source: Open sourcing a dapp changes the structure of its business practices so that the internet is common denominator instead of a chain of close silos. Internal Currency: How is an open source dapp developer supposed generate income? They allocate scarce resources in the network using a scarce token, an appcoin.  Users need this appcoin to use the network.  Owners of scarce resources get paid in appcoins. Decentralized Consensus: The blockchain’s innovation is decentralized consensus. If your app needs some feature that requires everyone else to agree on something, you should use a blockchain. No Central Point of Failure: Dapps can’t be shutdown, because there is no server to take own. Ata in a dapp is decentralized across all of its noes.  Each node is independent, if one fails, the others are still able to run on the network.

 

Financial Applications

Financial applications are popularly known as DeFi applications, short for “decentralized finance. ”The idea is to use blockchains (especially Ethereum) to improve more complex financial applications – such as lending, wills and insurance – and stablecoins, alternative coins that aim to stabilize cryptocurrency prices.

 

Semi-Financial Apps

The second type of app is similar, but it mixes money with “a heavy non-monetary side” as Buterin puts it in the Ethereum white paper. Buterin gives the example of Ethereum developers setting up “bounties,” rewards that can only be unlocked if someone accomplishes a task. In western movies, bounties are doled out to outlaws able to catch a person or criminal. But, in this case, they are rewarded for far less dangerous tasks, such as solving a difficult computational problem. The magic here is the smart contract is (in theory) able to tell if the bounty hunter has provided a working solution, only disbursing the funds if this condition is met. Another example is a crop insurance application that’s dependent on an outside weather feed. Say a farmer buys a derivative that automatically pays out if a drought wipes out her crops. These smart contracts rely on so-called “oracles” that relay up-to-date information about the outside world, like how many inches of rain fell last season. The major caveat, though, is that many developers are skeptical oracles can be used in a decentralized way. Users have to trust that the data feed is providing the correct data, and not gaming the data for their own financial interest.

 

Other Applications: DAOs and Beyond

Ethereum is a flexible platform, so developers are dreaming up other ideas that don’t fit into the usual financial classifications. One example is to use this approach to create a decentralized social network that’s resistant to censorship. Most mainstream social apps, such as Twitter, censor some posts, and some critics argue those social apps apply inconsistent standards about what content is censored or “downranked. ”So, with a decentralized app like Peepeth, once you publish a message to the blockchain, it can’t be erased, not even by the company that built the platform. It will live on Ethereum forever. Some have explored taking this idea of decentralization even further. If Bitcoin can do away with financial authorities, is it possible to do the same for companies and other types of organizations? Decentralized Autonomous Organizations (DAOs) are one particularly ambitious breed of dapp that attempts to answer “yes” to that question. The goal is to form a leaderless company by programming rules at the beginning about how members can join, vote, how to release company funds and more. Once launched, the DAO would operate under these rules indefinitely.

 

Dapp Challenges

Dapps are early, experimental, and developers have yet to solve several crucial problems with the underlying network holding them back. For one, dapps can be very expensive to run when Ethereum grows more congested with users. Although traditional apps sometimes have issues with scale, those issues are exacerbated in a decentralized environment, which by its nature can’t operate without a certain level of cooperation and coordination among multiple stakeholders.

 

The Future of Decentralized Apps

Although Bitcoin can arguably be called the first dapp, Ethereum has since become the primary growth driver of the dapp ecosystem. Mainly because of its smart contracts, network effect, and user base. As the decentralized finance (DeFi) market expands its use cases and adoption, dapps present an essential launching point to new audiences by deploying user interfaces that emulate conventional web applications while accessing the new capabilities of blockchain. In doing so, dapps are in many ways expanding the functionality of the internet through blockchain. Irrespective of the underlying blockchain use, interest in dapps is growing fast — and the movement has only just begun. As blockchain continues to develop at a speedy pace, it’s probable that finance, gaming, online markets, and social media will all become blockchain-based dapps.

 

This article
is authored by  Peter Spoleti and republished with permission from the Vertex Markets Knowledge Center. Vertex uses AI to make B2B introductions
providing a business networking site free from guesswork as to where more
valuable interactions are found. Contact Vertex Markets here.

 

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An Expert on Search and Rescue Robots Explains the Technologies Used in Disasters like the Florida Condo Collapse

Texas
A&M’s Robin Murphy has deployed robots at 29 disasters, including three
building collapses, two mine disasters and an earthquake as director of the
Center for Robot-Assisted Search and Rescue. She has also served as a technical
search specialist with the Hillsboro County (Florida) Fire and Rescue
Department. The Conversation talked to Murphy to provide readers an
understanding of the types of technologies that search and rescue crews at the
Champlain Towers South disaster site in Surfside, Florida, have at their
disposal, as well as some they don’t. The interview has been edited for length.

 

What types of technologies are rescuers using at the Surfside condo collapse site?

We don’t have reports about it from Miami-Dade Fire Rescue Department, but news coverage shows that they’re using drones.

A standard kit for a technical search specialist would be basically a backpack of tools for searching the interior of the rubble: listening devices and a camera-on-a-wand or borescope for looking into the rubble.

 

How are drones typically used to help searchers?

They’re used to get a view from above to map the disaster and help plan the search, answering questions like: What does the site look like? Where is everybody? Oh crap, there’s smoke. Where is it coming from? Can we figure out what that part of the rubble looks like?

In Surfside, I wouldn’t be surprised if they were also flying up to look at those balconies that are still intact and the parts that are hanging over. A structural specialist with binoculars generally can’t see accurately above three stories. So they don’t have a lot of ability to determine if a building’s safe for people to be near, to be working around or in, by looking from the ground.

Drones can take a series of photos to generate orthomosaics. Orthomosaics are like those maps of Mars where they use software to glue all the individual photos together and it’s a complete map of the planet. You can imagine how useful an orthomosaic can be for dividing up an area for a search and seeing the progress of the search and rescue effort.

Search and rescue teams can use that same data for a digital elevation map. That’s software that gets the topology of the rubble and you can start actually measuring how high the pile is, how thick that slab is, that this piece of rubble must have come from this part of the building, and those sorts of things.

 

How might ground robots be used in this type of disaster?

The current state of the practice for searching the interior of rubble is to use either a small tracked vehicle, such as an Inkutun VGTV Extreme, which is the most commonly used robot for such situations, or a snakelike robot, such as the Active Scope Camera developed in Japan.

Teledyne FLIR is sending a couple of tracked robots and operators to the site in Surfside, Florida.

Ground robots are typically used to go into places that searchers can’t fit into and go farther than search cameras can. Search cams typically max out at 18 feet, whereas ground robots have been able to go over 60 feet into rubble. They are also used to go into unsafe voids that a rescuer could fit in but that would be unsafe and thus would require teams to work for hours to shore up before anyone could enter it safely.

In theory, ground robots could also be used to allow medical personnel to see and talk with survivors trapped in rubble, and carry small packages of water and medicine to them. But so far no search and rescue teams anywhere have found anyone alive with a ground robot.

 

What are the challenges for using ground robots inside rubble?

The big problem is seeing inside the rubble. You’ve got basically a concrete, sheetrock, piping and furniture version of pickup sticks. If you can get a robot into the rubble, then the structural engineers can see the interior of that pile of pickup sticks and say “Oh, OK, we’re not going pull on that, that’s going to cause a secondary collapse. OK, we should start on this side, we’ll get through the debris quicker and safer.”

Going inside rubble piles is really hard. Scale is important. If the void spaces are on the order of the size of the robot, it’s tricky. If something goes wrong, it can’t turn around; it has to drive backward. Tortuosity – how many turns per meter – is also important. The more turns, the harder it is.

There’s also different surfaces. The robot may be on a concrete floor, next thing it’s on a patch of somebody’s shag carpeting. Then it’s got to go through a bunch of concrete that’s been pulverized into sand. There’s dust kicking up. The surroundings may be wet from all the sewage and all the water from sprinkler systems and the sand and dust start acting like mud. So it gets really hard really fast in terms of mobility.

 

What is your current research focus?

We look at human-robot interaction. We discovered that of all of the robots we could find in use, including ours – and we were the leading group in deploying robots in disasters – 51% of the failures during a disaster deployment were due to human error.

It’s challenging to work in these environments. I’ve never been in a disaster where there wasn’t some sort of surprise related to perception, something that you didn’t realize you needed to look for until you’re there.

 

What is your Ideal search and rescue robot?

I’d like someone to develop a robot ferret. Ferrets are kind of snakey-looking mammals. But they have legs, small little legs. They can scoot around like a snake. They can claw with their little feet and climb up on uneven rocks. They can do a full meerkat, meaning they can stretch up really high and look around. They’re really good at balance, so they don’t fall over. They can be looking up and all of a sudden the ground starts to shift and they’re down and they’re gone – they’re fast.

 

How do you see the field of search and rescue robots going forward?

There’s no real funding for these types of ground robots. So there’s no economic incentive to develop robots for building collapses, which are very rare, thank goodness.

And the public safety agencies can’t afford them. They typically cost US$50,000 to $150,000 versus as little as $1,000 for an aerial drone. So the cost-benefit doesn’t seem to be there.

I’m very frustrated with this. We’re still about the same level we were 20 years ago at the World Trade Center.

 

This article was republished with permission from The Conversation, a news site dedicated to sharing ideas from academic experts.  It was written by and represents the research-based opinions
of Robin R. Murphy Raytheon Professor of Computer Science and Engineering; Vice-President Center for
Robot-Assisted Search and Rescue (nfp), Texas A&M University

 

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Will the Government’s Financial Support for Cloud Computing Help Investors in the Technology?

 

While the infrastructure bill President Biden is stomping to gather support for is not likely to pass in its current form, it is clear that there will be an infrastructure bill that passes. When a modified bill reaches his desk to sign, it will include projects that the administration believes are important to the country. When we think of infrastructure, we tend to think of roads, bridges, and railways. But this is 2021 and investing in infrastructure also includes improving the three Cs, communication, connectivity, and cloud services.

During the pandemic last year, it became highly apparent how important the three Cs are to our daily lives. And now it’s easy to recognize the increasing importance in our daily work, play, backup storage, and personal gathering of information. While infrastructure improvements in telecommunications and connectivity are understood by most, the cloud is a bit harder to wrap our minds around. The technology is only finding more uses and with high-tech attacks on data and storage needs growing, this area is becoming more exciting to investors as it matures and remains on the national infrastructure list.

 

Cloud Infrastructure Defined

To understand cloud infrastructure, we can’t skip over cloud computing. According to the National Institute of Standards and Technology website, cloud computing “…enables ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.” Put another way; resources are available from everywhere, on-demand on a shared but partitioned, offsite resource.

Cloud infrastructure refers to the hardware and software components of the networks, servers, storage, virtualization software, applications, etc., that support the computing requirements of cloud computing. Cloud infrastructure also includes the abstraction layer that hides the inner workings and logically presents the resource or service to cloud users via app interfaces or another software intermediary.  This allows the two to comprehend each other and deliver a usable resource.

In cloud computing, these resources are hosted by a service provider or IT department and are available to users over the internet or through a network. The resources include machines and components, such as servers, memory, network switches, firewalls, load balancers, and storage.

 

Cloud Infrastructure Components

Investors seeking to benefit from the government’s attention to this area ought to discover the local companies involved in the design and manufacture of the various components, especially those more likely to receive a piece of taxpayers’ money. The cloud infrastructure includes the recognizable back-end hardware elements found within data centers – but on a greater scale. These are multisocket, multicore servers, persistent storage, and local area network equipment, such as switches and routers. U.S. Manufacturers of these components may benefit when a bill passes.

 

Take-Away

Globally the cloud computing market is projected to reach $791.48 billion by 2028, which has a compound annual growth rate of 17.9%. Specifically, in the U.S., there is a focus and likely funding that adds to the attractiveness of this tech sector. Although where the money will be spread is not certain, a recent executive order by the President shows he believes the big tech companies and other corporate giants have grown too large. Information on smaller U.S.-based companies operating in this sector are available on Channelchek along with company descriptions, data, and in the case of Digitech (DGTI), a newly published analysts report.

 

Suggested Reading:

Threats to Your Personal Information	Norton Crypto Introduces Home Mining

How Your Data is Used to Generate Big Returns	Is Inflation Going to Hurt Stocks?

 

Sources:

https://csrc.nist.gov/publications/detail/sp/800-145/final#:~:text=Cloud%20computing%20is%20a%20model,effort%20or%20service%20provider%20interaction.

 

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Image Credit: T/Data Breach (Flickr)

Ransomware, Data Breach, Cyberattack: What they have to do with your Personal Information, How Worried Should You Be?

 

The headlines are filled with news about ransomware attacks tying up organizations large and small, data breaches at major brand-name companies and cyberattacks by shadowy hackers associated with Russia, China, and North Korea. Are these threats to your personal information?

If it’s a ransomware attack on a pipeline company, probably not. If it’s a hack by foreign agents of a government agency, maybe, particularly if you’re a government employee. If it’s a data breach at a credit bureau, social media company or major retailer, very likely.

The bottom line is that your online data is not safe. Every week a new major data breach is reported, and most Americans have experienced some form of data theft. And it could hurt you. What should you do?

 

Mildly Annoyed or Majorly Aggrieved

First, was the latest digital crime a ransomware attack or was it a data breach? Ransomware attacks encrypt or lock up, your programs or data files, but your data is usually not exposed, so you probably have nothing to worry about. If the target is a company whose services you use, you might be inconvenienced while the company is out of commission.

If it was a data breach, find out if your information has been exposed. You may have been notified that your personal data was exposed. U.S. laws require companies to tell you if your data was stolen. But you can also check for yourself at haveibeenpwned.com.

A data breach could include theft of your online credentials: your username and password. But hackers might also steal your bank account or credit card numbers or other sensitive or protected information, such as your personal health information, your email address, phone number, street address or Social Security number.

Having your data stolen from a company can be scary, but it is also an opportunity to take stock and apply some common-sense measures to protect your data elsewhere. Even if your data has not been exposed yet, why not take the time now to protect yourself?

 

How Bad is It?

As a cybersecurity scholar, I suggest that you make a risk assessment. Ask yourself some simple questions, then take some precautions.

If you know your data was stolen, the most important question is what kind of data was stolen. Data thieves, just like car thieves, want to steal something valuable. Consider how attractive the data might be to someone else. Was it highly sensitive data that could harm you if it were in the wrong hands, like financial account records? Or was it data that couldn’t really cause you any problems if someone got hold of it? What information is your worst-case vulnerability if it were stolen? What could happen if data thieves take it?

Many e-commerce sites retain your purchase history, but not your credit card number, so ask yourself, did I authorize them to keep it on file? If you make recurring purchases from the site, such as at hotel chains, airlines and grocery stores, the answer is probably yes. Thieves don’t care about your seat preferences. They want to steal your credit card info or your loyalty rewards to sell on the black market.

 

What to Do

A hand holds a smartphone showing a text message on the screen.

Two-factor authentication, which typically involves receiving a code in a text message, provides an extra layer of security in case your password is stolen. The Focal Project/Flickr, CC BY-NC.

If you haven’t already, set up two-factor authentication with all websites that store your valuable data. If data thieves stole your password, but you use two-factor authentication, then they can’t use your password to access your account.

It takes a little effort to enter that single-use code sent to your phone each time, but it does protect you from harm when the inevitable breach occurs. Even better, use an authentication app rather than texting for two-factor authentication. This is especially critical for your bank and brokerage accounts. If you think your health-related information is valuable or sensitive, you should also take extra precautions with your health care provider’s website, your insurance company, and your pharmacy.

If you used a unique password instead of reusing a favorite password you’ve used elsewhere, hackers can’t successfully use your credentials to access your other accounts. One-third of users are vulnerable because they use the same password for every account.

Take this opportunity to change your passwords, especially at banks, brokerages and any site that retains your credit card number. You can record your unique passwords on a piece of paper hidden at home or in an encrypted file you keep in the cloud. Or you can download and install a good password manager. Password managers encrypt passwords on your devices before they’re sent into the cloud, so your passwords are protected even if the password manager company is hacked.

If your credit card number was exposed, you should notify your bank. Now is a good time to set up mobile banking alerts to receive notifications of unusual activity, big purchases and so on. Your bank may want to issue new cards with new numbers to you. That’s considerably less of a hassle than experiencing identity theft.

You should also consider closing old unused accounts so that the information associated with them is no longer available. Do you have a loyalty account with a hotel chain, restaurant, or airline that you haven’t used in years and won’t use again? Close it. If you have a credit card with that company, make sure they report the account closure to the credit reporting agencies.

Now is a great time to check your credit reports from all three credit bureaus. Do you rarely apply for new credit and want to protect your identity? If so, freeze your credit. Make sure to generate unique passwords and record them at home in case you need to unfreeze your credit later to apply for a loan. This will help protect you from some of the worst consequences of identity theft.

 

This article was republished with permission from The
Conversation, a news site dedicated to sharing ideas from academic
experts.  It was written by and represents the research-based findings of Merrill Warkentin, James J.
Rouse Endowed Professor of Information Systems, Mississippi State University.

 

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Is Zero Trust Architecture Enough?	Should Investors Listen to Influencers?

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Comtech Telecommunications Corp. Awarded $5.0 Million Contract to Deploy a Next Generation 911 Solution to a U.S. Government End Customer

 

MELVILLE, N.Y.–(BUSINESS WIRE)–Jun. 17, 2021– 
June 17, 2021— 
Comtech Telecommunications Corp. (NASDAQ: CMTL), a world leader in secure wireless communications technologies, announced today, that 
Comtech Solacom Technologies, Inc., a division of Comtech’s Commercial Solutions segment, was awarded a Next Generation 911 (“NG 911”) modernization project for a 
U.S. Government end customer. Of the total 
$5.0 million contract value, 
$3.2 million was awarded to 
Comtech in its fourth fiscal quarter.

Comtech Solacom will provide a full turnkey solution, including all hardware and software, installation, and training for a multi-node, geographically dispersed Guardian call management system. The Guardian solution will be deployed in a redundant, multi-geo-diverse configuration ensuring the highest possible service availability with an intuitive user interface allowing call takers to quickly assess, prioritize and handle landline, wireless and VoIP emergency calls. Call takers can quickly create conferences, transfer calls, determine the location of callers and replay recently recorded conversations.

“Comtech’s commitment to innovative next generation emergency communication solutions has been recognized by the selection of the Solacom Guardian solution to modernize the 911 operations of a major 
U.S. Government end customer. Deployed and supported in close cooperation with the prime contractor, the Guardian solution will further enhance our long-standing partnership with this customer allowing them to focus on critical missions,” said  Fred Kornberg, Chairman of the Board and Chief Executive Officer of 
Comtech Telecommunications Corp.

Comtech Solacom emergency call handling and management solutions are built on more than 30 years of research and innovation in the application of advanced hardware and software technologies for public safety. For more information, visit: www.solacom.com.

Comtech Telecommunications Corp. is a leader in the global communications market headquartered in 
Melville, New York. With a passion for customer success, 
Comtech designs, produces and markets advanced secure wireless solutions to more than 1,000 customers in more than 100 countries. For more information, please visit www.comtechtel.com.

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s 
Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such 
Securities and Exchange Commission filings.

Media Contact:
Michael D. Porcelain, President and Chief Operating Officer

Comtech Telecommunications Corp.
631-962-7000
[email protected]

Source: 
Comtech Telecommunications Corp.

Comtech Telecommunications Corp. Awarded $5.0 Million Contract to Deploy a Next Generation 911 Solution to a U.S. Government End Customer

 

MELVILLE, N.Y.–(BUSINESS WIRE)–Jun. 17, 2021– 
June 17, 2021— 
Comtech Telecommunications Corp. (NASDAQ: CMTL), a world leader in secure wireless communications technologies, announced today, that 
Comtech Solacom Technologies, Inc., a division of Comtech’s Commercial Solutions segment, was awarded a Next Generation 911 (“NG 911”) modernization project for a 
U.S. Government end customer. Of the total 
$5.0 million contract value, 
$3.2 million was awarded to 
Comtech in its fourth fiscal quarter.

Comtech Solacom will provide a full turnkey solution, including all hardware and software, installation, and training for a multi-node, geographically dispersed Guardian call management system. The Guardian solution will be deployed in a redundant, multi-geo-diverse configuration ensuring the highest possible service availability with an intuitive user interface allowing call takers to quickly assess, prioritize and handle landline, wireless and VoIP emergency calls. Call takers can quickly create conferences, transfer calls, determine the location of callers and replay recently recorded conversations.

“Comtech’s commitment to innovative next generation emergency communication solutions has been recognized by the selection of the Solacom Guardian solution to modernize the 911 operations of a major 
U.S. Government end customer. Deployed and supported in close cooperation with the prime contractor, the Guardian solution will further enhance our long-standing partnership with this customer allowing them to focus on critical missions,” said  Fred Kornberg, Chairman of the Board and Chief Executive Officer of 
Comtech Telecommunications Corp.

Comtech Solacom emergency call handling and management solutions are built on more than 30 years of research and innovation in the application of advanced hardware and software technologies for public safety. For more information, visit: www.solacom.com.

Comtech Telecommunications Corp. is a leader in the global communications market headquartered in 
Melville, New York. With a passion for customer success, 
Comtech designs, produces and markets advanced secure wireless solutions to more than 1,000 customers in more than 100 countries. For more information, please visit www.comtechtel.com.

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s 
Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such 
Securities and Exchange Commission filings.

Media Contact:
Michael D. Porcelain, President and Chief Operating Officer

Comtech Telecommunications Corp.
631-962-7000
[email protected]

Source: 
Comtech Telecommunications Corp.

Tuesday, June 15, 2021

Comtech (CMTL)
Outerbridge Seeks Strategic Alternatives

Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite packet data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs, develops, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Kevin Wahle, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Outerbridge Letter. Yesterday, Outerbridge Capital announced it had delivered a letter to Comtech’s BoDs seeking a review of strategic alternatives. According to the letter, while Outerbridge believes “Comtech continues to be a market leader with best-in-class products and strong growth prospects, the Company…remains significantly undervalued.” Outerbridge values CMTL shares in the $32-$40 range.


Who Is Outerbridge? Founded by Rory Wallace, Outerbridge is a New York-based investment adviser that typically invests across the technology and technology-impacted sectors.  Probably its most well known play was at Barnes & Noble Education, where Outerbridge also pushed for a strategic review. Ultimately, the investment advisor ended up with two Board seats …

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Tuesday, June 15, 2021

Voyager Digital Ltd. (VYGVF)(VYGR:CA)
Initiation on Voyager Digital: the Fastest Growing Digital Asset Broker

Voyager Digital Ltd through its subsidiary, operates as a crypto asset broker that provides retail and institutional investors with a turnkey solution to trade crypto assets. The company offers investors execution, data, wallet and custody services through its institutional-grade open architecture platform.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Kevin Wahle, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Initiating Coverage. We are initiating research coverage on Voyager Digital Ltd. Voyager is a leading-edge, commission-free, crypto-currency brokerage. We believe the Company is well positioned to capitalize on fast growing interest in the cryptocurrency space, whiling leveraging its platform to become the central financial platform for its clients.


Leading Crypto Trading Platform With Stickiness.  Voyager’s platform enables trading on over 60 (and growing) different cryptocurrencies and assets, the largest of any platform. In addition, the Company pays interest on 20 of the coins, providing a reason for clients to move assets to, and keep them on, the platform. Voyager provides faster execution and deeper liquidity, often enabling clients to …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Friday, June 11, 2021

Comtech (CMTL)
Positives Outweigh the Negatives

Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite packet data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs, develops, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

3Q21 Results. Comtech reported revenue of $139.4 million, up 3.2% from the $135.1 million reported last year. Adjusted EBITDA came in at $17.7 million compared to $12.5 million last year. EPS was $0.03 and adjusted EPS was $0.26 compared to a loss of $0.16 and EPS of $0.05, respectively, last year. We had forecast revenue of $141 million, adjusted EBITDA of $10.6 million, EPS of $0.03, and adjusted EPS of $0.14.


Multiple Potential Business Drivers.  Comtech has a number of large opportunities ahead, including a multi-year agreement for next gen satellite earth station equipment that could be worth hundreds of millions, an updated version of BFT, also potentially worth in the hundreds of millions, multiple NG911 statewide contracts, and additional troposcatter opportunities. And, at the most basic, just a …

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Noble Capital Markets Senior Research Analyst Joe Gomes sits down with TAAL Distributed Information Technologies President Chris Naprawa for this exclusive interview. Research, News, and Advanced Market Data on TAALF View all C-Suite Interviews About TAAL TAAL Distributed Information Technologies Inc. delivers value-added blockchain services, providing professional-grade, highly scalable blockchain infrastructure and transactional platforms to support businesses building solutions and applications upon the BitcoinSV platform, and developing, operating, and managing distributed computing systems for enterprise users.

Comtech Telecommunications Corp. Announces Results for Its Fiscal 2021 Third Quarter and Updates Its Financial Targets for Fiscal 2021

 

MELVILLE, N.Y.–(BUSINESS WIRE)–Jun. 8, 2021– 
June 8, 2021— 
Comtech Telecommunications Corp. (NASDAQ: CMTL) today reported its operating results for the third fiscal quarter ended 
April 30, 2021 and updated its financial targets for fiscal 2021.

Fiscal 2021 Third Quarter Highlights

• Consolidated net sales of 
  $139.4 million and Adjusted EBITDA of 
  $17.7 million (or 12.7% of consolidated net sales). Adjusted EBITDA, which significantly exceeded 
  Comtech’s expectation for its third quarter of fiscal 2021, is a non-GAAP financial measure that is reconciled to the most directly comparable GAAP financial measure and is more fully defined below.

• With bookings of 
  $115.9 million, the Company achieved a book-to-bill ratio (a measure defined as bookings divided by net sales) of 0.83 during its third quarter of fiscal 2021. Backlog as of 
  April 30, 2021 was 
  $636.5 million. The total value of multi-year contracts that 
  Comtech has received is substantially higher than its reported backlog. When adding Comtech’s backlog and the total unfunded value of multi-year contracts that 
  Comtech has received and for which it expects future orders, its revenue visibility approximates 
  $1.1 billion.

• The Company incurred an aggregate of 
  $5.3 million of acquisition plan expenses due to the 
  April 2021 settlement of litigation related to the 2019 acquisition of GD NG-911 as well as the 
  March 2021 closing of the UHP acquisition. The integration of UHP into Comtech’s satellite ground station product line is well underway, and it does not expect to incur any significant acquisition plan expenses for the remainder of fiscal 2021.

• The Company’s annual effective income tax rate was 11.5%, excluding a net discrete tax expense of 
  $0.2 million.

• Comtech reported GAAP operating income of 
  $2.4 million, GAAP net income of 
  $0.8 million and GAAP net income per diluted share (“EPS”) of 
  $0.03 for the third quarter of fiscal 2021. Non-GAAP operating income was 
  $8.9 million, Non-GAAP net income was 
  $6.8 million and Non-GAAP EPS was 
  $0.26. These Non-GAAP amounts exclude acquisition plan expenses, restructuring costs, COVID-19 related costs, strategic emerging technology costs for next-generation satellite technology and a net discrete tax expense. Non-GAAP amounts are reconciled to the most directly comparable GAAP financial measures in the table below.

• Comtech generated GAAP operating cash flows of 
  $6.8 million during the third quarter and had 
  $39.2 million of cash and cash equivalents and total debt outstanding of 
  $215.0 million as of 
  April 30, 2021.

Commenting on the Company’s third quarter fiscal 2021 performance,  Fred Kornberg, Chairman of the Board and Chief Executive Officer, stated, “Thanks to the hard work of all of our team members, we achieved solid operating performance and have recently secured important contract awards that bode well for our future. We are continuing to invest in new state-of-the-art production and engineering facilities as well as new next-generation wireless technology solutions that we believe our customers will want in the post-COVID-19 pandemic economic recovery. Looking forward, we are confident that we will have a strong finish to fiscal 2021 and achieve growth in fiscal 2022.”

COMMENTS AND FINANCIAL TARGETS FOR EXPECTED FISCAL 2021 PERFORMANCE

Comtech is making the following comments on expected fiscal 2021 performance:

• Comtech expects fiscal 2021 consolidated net sales to be in a range of 
  $580.0 million to 
  $590.0 million. This updated target primarily reflects a change in anticipated revenues in its Government Solutions segment due to the 
  U.S. government’s 
  April 2021 announcement to fully withdraw troops from 
  Afghanistan as well as other program changes. At the same time, the Company’s effort to streamline business operations are paying off and it continues to target Adjusted EBITDA in a range of 
  $74.0 million to 
  $76.0 million for fiscal 2021.

• During the third quarter, 
  Comtech incurred 
  $0.3 million of strategic emerging technology costs for next-generation satellite technology to advance its solutions offerings to be used with new broadband satellite constellations. The Company is evaluating this new market in relation to its long-term business strategies, and it may incur additional costs over the next twelve months.

• As disclosed in the Company’s Quarterly Report on Form 10-Q filed with the 
  Securities and Exchange Commission (“SEC”) today, at the start of Comtech’s fourth quarter of fiscal 2021, it entered into a multi-year agreement enabling a customer to potentially order hundreds of millions of dollars of its next-generation satellite earth station technology. Shortly after 
  Comtech signed this agreement, it received its first order valued at more than 
  $13.0 million to make certain customizations on behalf of this customer. Work on these efforts has commenced immediately.

• Comtech expects fiscal 2021 revenue in its Commercial Solutions segment to be slightly higher than the amount it achieved in fiscal 2020, primarily due to: (i) strong demand for 
  Comtech’s public safety technology solutions; (ii) delivering 5G virtual mobile location-based technology solutions for two 
  U.S. tier-one mobile network operators; (iii) contract performance in support of a critical 
  U.S. Air Force and 
  U.S. Army Anti-jam Modem (“A3M”) program under the 
  U.S. Space Force’s Space and Missile Systems Center (“SMC”) agency; and (iv) deliveries of SLM-5650B satellite modems and firmware related to a previously awarded contract from the 
  U.S. Naval Information Warfare Systems Command.

• Comtech expects fiscal 2021 revenue in its Government Solutions segment to be significantly lower than the amount it achieved in fiscal 2020. Fiscal 2021 is anticipated to reflect significantly lower sales of field support services, partially offset by demand for: (i) Manpack Satellite Terminals, networking equipment and other advanced VSAT products by the 
  U.S. Army; (ii) ongoing sustainment services for the 
  U.S. Army for the AN/TSC-198A SNAP terminal; (iii) sustainment services for the 
  U.S. Army’s Project Manager Mission Command (“PM MC”) Blue Force Tracking (“BFT-1”) program; and (iv) Joint Cyber Analysis Course (“JCAC”) training solutions.

• During its third quarter of fiscal 2021, 
  Comtech initiated an effort to improve efficiencies and streamline operations in its Government Solutions segment. These efforts, which remain ongoing, include the consolidation of certain administrative and operating functions in both its 
  Florida and 
  Maryland locations. In addition, 
  Comtech has started to shift production of many of its key satellite earth station products from its existing 
  Tempe, Arizona locations to a new 146,000 square foot facility in 
  Chandler, Arizona as well as the combination of certain related functions. This new facility is located less than 10 miles from its current facilities and is expected to support anticipated growth and long-term business goals. Over time, these efforts are expected to improve consolidated Adjusted EBITDA margins.

• Additional information about the Company’s third quarter fiscal 2021 performance and updated fiscal 2021 targets can be found in the Company’s Form 10-Q as filed with the 
  SEC. Because of the pandemic’s continuing impact on global business conditions, the Company is not providing any GAAP operating income, GAAP net income or GAAP EPS guidance or a reconciliation of the Company’s projected Adjusted EBITDA results to the most comparable GAAP measure, as such a reconciliation cannot be prepared without unreasonable effort. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.

Conference Call

The Company has scheduled an investor conference call for 
4:30 PM (ET) on 
Tuesday, June 8, 2021. Investors and the public are invited to access a live webcast of the conference call from the Investor Relations section of the 
Comtech website at www.comtechtel.com. Alternatively, investors can access the conference call by dialing (800) 895-3361 (domestic), or (785) 424-1062 (international) and using the conference I.D. ”
Comtech.” A replay of the conference call will be available for seven days by dialing (800) 839-4568 or (402) 220-2681. In addition, an updated investor presentation is available on the Company’s website.

About Comtech

Comtech Telecommunications Corp. is a leader in the global communications market headquartered in 
Melville, New York. With a passion for customer success, 
Comtech designs, produces and markets advanced secure wireless solutions to more than 1,000 customers in more than 100 countries. For more information, please visit www.comtechtel.com.

Cautionary Statement Regarding Forward-Looking Statements

Certain information in this press release contains forward-looking statements, including but not limited to, information relating to the Company’s future performance and financial condition, plans and objectives of the Company’s management and the Company’s assumptions regarding such future performance, financial condition, and plans and objectives that involve certain significant known and unknown risks and uncertainties and other factors not under the Company’s control which may cause its actual results, future performance and financial condition, and achievement of plans and objectives of the Company’s management to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, among other things: the possibility that the expected synergies and benefits from recent acquisitions will not be fully realized, or will not be realized within the anticipated time periods; the risk that the acquired businesses will not be integrated with the Company successfully; the possibility of disruption from recent acquisitions, making it more difficult to maintain business and operational relationships or retain key personnel; the risk that the Company will be unsuccessful in implementing a tactical shift in its Government Solutions segment away from bidding on large commodity service contracts and toward pursuing contracts for its niche products with higher margins; the nature and timing of receipt of, and the Company’s performance on, new or existing orders that can cause significant fluctuations in net sales and operating results; the timing and funding of government contracts; adjustments to gross profits on long-term contracts; risks associated with international sales; rapid technological change; evolving industry standards; new product announcements and enhancements, including the risks associated with expanding the sales of the 
Company’s Heights^TM Network Platform (“HEIGHTS”); changing customer demands and or procurement strategies; changes in prevailing economic and political conditions; changes in the price of oil in global markets; changes in foreign currency exchange rates; risks associated with the Company’s legal proceedings, customer claims for indemnification, and other similar matters; risks associated with the Company’s obligations under its Credit Facility; risks associated with the Company’s large contracts; risks associated with the COVID-19 pandemic; and other factors described in this and the Company’s other filings with the 
Securities and Exchange Commission.

COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited)
		Three months ended  April 30,								Nine months ended  April 30,
		2021				2020				2021				2020
Net sales		$	139,376,000			$	135,121,000			$	435,886,000			$	467,042,000
Cost of sales		86,360,000				82,120,000				276,982,000				289,872,000
Gross profit		53,016,000				53,001,000				158,904,000				177,170,000
Expenses:
Selling, general and administrative		26,997,000				32,313,000				83,999,000				93,538,000
Research and development		13,092,000				12,324,000				37,391,000				40,925,000
Amortization of intangibles		5,310,000				5,517,000				15,671,000				15,952,000
Acquisition plan expenses		5,267,000				5,983,000				99,807,000				14,397,000
		50,666,000				56,137,000				236,868,000				164,812,000
Operating income (loss)		2,350,000				(3,136,000		)		(77,964,000		)		12,358,000
Other expenses (income):
Interest expense		1,518,000				1,504,000				5,233,000				4,924,000
Interest (income) and other		(276,000		)		108,000				(276,000		)		37,000
Income (loss) before provision for (benefit from) income taxes		1,108,000				(4,748,000		)		(82,921,000		)		7,397,000
Provision for (benefit from) income taxes		316,000				(759,000		)		(2,078,000		)		1,503,000
Net income (loss)		$	792,000			$	(3,989,000	)		$	(80,843,000	)		$	5,894,000
Net income (loss) per share:
Basic		$	0.03			$	(0.16	)		$	(3.12	)		$	0.24
Diluted		$	0.03			$	(0.16	)		$	(3.12	)		$	0.24
Weighted average number of common shares outstanding – basic		25,911,000				24,982,000				25,875,000				24,730,000
Weighted average number of common and common equivalent shares outstanding – diluted		26,266,000				24,982,000				25,875,000				24,892,000

COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES Condensed Consolidated Balance Sheets
	April 30, 2021				July 31, 2020
	(Unaudited)				(Audited)
Assets
Current assets:
Cash and cash equivalents	$	39,198,000			$	47,878,000
Accounts receivable, net	144,132,000				126,816,000
Inventories, net	83,106,000				82,302,000
Prepaid expenses and other current assets	25,801,000				20,101,000
Total current assets	292,237,000				277,097,000
Property, plant and equipment, net	29,366,000				27,037,000
Operating lease right-of-use assets, net	47,296,000				30,033,000
Goodwill	347,780,000				330,519,000
Intangibles with finite lives, net	274,048,000				258,019,000
Deferred financing costs, net	1,839,000				2,391,000
Other assets, net	6,026,000				4,551,000
Total assets	$	998,592,000			$	929,647,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	33,277,000			$	23,423,000
Accrued expenses and other current liabilities	97,602,000				85,161,000
Operating lease liabilities, current	8,755,000				8,247,000
Dividends payable	2,600,000				2,468,000
Contract liabilities	56,192,000				40,250,000
Interest payable	227,000				163,000
Total current liabilities	198,653,000				159,712,000
Non-current portion of long-term debt, net	215,000,000				149,500,000
Operating lease liabilities, non-current	41,542,000				24,109,000
Income taxes payable	2,588,000				1,963,000
Deferred tax liability, net	24,495,000				17,637,000
Long-term contract liabilities	8,997,000				9,596,000
Other liabilities	15,695,000				17,831,000
Total liabilities	506,970,000				380,348,000
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value  $.10 per share; shares authorized and unissued 2,000,000	—				—
Common stock, par value  $0.10 per share; authorized 100,000,000 shares; issued 41,102,215 shares and 39,924,439 shares at  April 30, 2021 and  July 31, 2020, respectively	4,110,000				3,992,000
Additional paid-in capital	601,029,000				569,891,000
Retained earnings	328,332,000				417,265,000
	933,471,000				991,148,000
Less:
Treasury stock, at cost (15,033,317 shares at  April 30, 2021 and  July 31, 2020)	(441,849,000		)		(441,849,000		)
Total stockholders’ equity	491,622,000				549,299,000
Total liabilities and stockholders’ equity	$	998,592,000			$	929,647,000

COMTECH TELECOMMUNICATIONS CORP.
AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
(Unaudited)

Use of Non-GAAP Financial Measures

In order to provide investors with additional information regarding its financial results, this press release contains “Non-GAAP financial measures” under the rules of the 
SEC. The Company’s Adjusted EBITDA is a Non-GAAP measure that represents earnings (loss) before income taxes, interest (income) and other, write-off of deferred financing costs, interest expense, amortization of stock-based compensation, amortization of intangible assets, depreciation expense, estimated contract settlement costs, settlement of intellectual property litigation, acquisition plan expenses, restructuring costs, COVID-19 related costs, strategic emerging technology costs (for next-generation satellite technology), facility exit costs, strategic alternatives analysis expenses and other. The Company’s definition of Adjusted EBITDA may differ from the definition of EBITDA or Adjusted EBITDA used by other companies and therefore may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA is also a measure frequently requested by the Company’s investors and analysts. The Company believes that investors and analysts may use Adjusted EBITDA, along with other information contained in its 
SEC filings, in assessing the Company’s performance and comparability of its results with other companies. The Company’s Non-GAAP measures for consolidated operating income, net income and net income per diluted share reflect the GAAP measures as reported, adjusted for certain items as discussed below. These Non-GAAP financial measures have limitations as an analytical tool as they exclude the financial impact of transactions necessary to conduct the Company’s business, such as the granting of equity compensation awards, and are not intended to be an alternative to financial measures prepared in accordance with GAAP. These measures are adjusted as described in the reconciliation of GAAP to Non-GAAP in the below tables, but these adjustments should not be construed as an inference that all of these adjustments or costs are unusual, infrequent or non-recurring. Non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, financial measures determined in accordance with GAAP. Investors are advised to carefully review the GAAP financial results that are disclosed in the Company’s 
SEC filings. The Company has not quantitatively reconciled its fiscal 2021 Adjusted EBITDA target to the most directly comparable GAAP measure because items such as stock-based compensation, adjustments to the provision for income taxes, amortization of intangibles and interest expense, which are specific items that impact these measures, have not yet occurred, are out of the Company’s control, or cannot be predicted. For example, quantification of stock-based compensation expense requires inputs such as the number of shares granted and market price that are not currently ascertainable. Accordingly, reconciliations to the Non-GAAP forward looking metrics are not available without unreasonable effort and such unavailable reconciling items could significantly impact the Company’s financial results.

		Three months ended								Nine months ended								Fiscal
		April 30,								April 30,								Year
		2021				2020				2021				2020				2020
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA:
Net income (loss)		$	792,000			$	(3,989,000	)		$	(80,843,000	)		$	5,894,000			$	7,020,000
Provision for (benefit from) income taxes		316,000				(759,000		)		(2,078,000		)		1,503,000				2,290,000
Interest (income) and other		(276,000		)		108,000				(276,000		)		37,000				(190,000		)
Interest expense		1,518,000				1,504,000				5,233,000				4,924,000				6,054,000
Amortization of stock-based compensation		1,204,000				981,000				3,190,000				3,098,000				9,275,000
Amortization of intangibles		5,310,000				5,517,000				15,671,000				15,952,000				21,595,000
Depreciation		2,274,000				2,650,000				7,283,000				8,022,000				10,561,000
Estimated contract settlement costs		—				476,000				—				444,000				444,000
Acquisition plan expenses		5,267,000				5,983,000				99,807,000				14,397,000				20,754,000
Restructuring costs		594,000				—				1,195,000				—				—
COVID-19 related costs		416,000				—				576,000				—				—
Strategic emerging technology costs		315,000				—				315,000				—				—
Adjusted EBITDA		$	17,730,000			$	12,471,000			$	50,073,000			$	54,271,000			$	77,803,000

In addition, a reconciliation of 
Comtech’s GAAP consolidated operating income (loss), net income (loss) and net income (loss) per diluted share to the corresponding non-GAAP measures is shown in the tables below for the three and nine months ended 
April 30, 2021 and 2020:

	April 30, 2021
	Three months ended												Nine months ended
	Operating Income				Net Income				Net Income per Diluted Share*				Operating (Loss) Income				Net (Loss) Income				Net (Loss) Income per Diluted Share*
Reconciliation of GAAP to Non-GAAP Earnings:
GAAP measures, as reported	$	2,350,000			$	792,000			$	0.03			$	(77,964,000	)		$	(80,843,000	)		$	(3.12	)
Acquisition plan expenses	5,267,000				4,661,000				0.18				99,807,000				96,379,000				3.70
Restructuring costs	594,000				526,000				0.02				1,195,000				1,058,000				0.04
COVID-19 related costs	416,000				368,000				0.01				576,000				510,000				0.02
Strategic emerging technology costs	315,000				279,000				0.01				315,000				279,000				0.01
Interest expense	—				—				—				—				1,043,000				0.04
Net discrete tax expense (benefit)	—				189,000				0.01				—				(592,000		)		(0.02		)
Non-GAAP measures	$	8,942,000			$	6,815,000			$	0.26			$	23,929,000			$	17,834,000			$	0.69
	April 30, 2020
	Three months ended												Nine months ended
	Operating (Loss) Income				Net (Loss) Income				Net (Loss) Income per Diluted Share*				Operating Income				Net Income				Net Income per Diluted Share*
Reconciliation of GAAP to Non-GAAP Earnings:
GAAP measures, as reported	$	(3,136,000	)		$	(3,989,000	)		$	(0.16	)		$	12,358,000			$	5,894,000			$	0.24
Acquisition plan expenses	5,983,000				4,128,000				0.16				14,397,000				9,934,000				0.40
Estimated contract settlement costs	476,000				328,000				0.01				444,000				306,000				0.01
Net discrete tax expense (benefit)	—				713,000				0.03				—				(790,000		)		(0.03		)
Non-GAAP measures	$	3,323,000			$	1,180,000			$	0.05			$	27,199,000			$	15,344,000			$	0.62
	Fiscal Year 2020
	Operating Income				Net Income				Net Income per Diluted Share*
Reconciliation of GAAP to Non-GAAP Earnings:
GAAP measures, as reported	$	15,174,000			$	7,020,000			$	0.28
Estimated contract settlement costs	444,000				280,000				0.01
Acquisition plan expenses	20,754,000				13,075,000				0.53
Net discrete tax benefit	—				(1,155,000		)		(0.05		)
Non-GAAP measures	$	36,372,000			$	19,220,000			$	0.77

* Per share amounts may not foot due to rounding. Non-GAAP EPS adjustments for the nine months ended 
April 30, 2021 were computed using 26,016,000 weighted average diluted shares outstanding during the respective period. In addition, non-GAAP EPS adjustments for three months ended 
April 30, 2020 were computed using 25,058,000 weighted average diluted shares outstanding during the respective period.

Media Contact:
Michael D. Porcelain, President and Chief Operating Officer
(631) 962-7000
[email protected]

Source: 
Comtech Telecommunications Corp.