Business Services Industry
Globecomm Systems Awarded Two Network Services Contracts Valued at Approximately $1.6 Million
Business Wire, June 1, 2005
HAUPPAUGE, N.Y. -- Globecomm Systems Inc. (NASDAQ: GCOM), a global provider of end-to-end value-added satellite-based communications solutions, today announced that the Company's wholly owned subsidiary, Globecomm Network Services Corporation (GNSC), has been awarded two contracts for network services valued at approximately $1.6 million.
Pursuant to the first contract, GNSC will provide network management services, field installation services and site management services to a major financial institution in the United States (U.S.) for a term of three-years. With the addition of this contract, GNSC will now be managing a total of three major U.S. enterprise customer network contracts.
The second contract is to provide satellite uplink, downlink and teleport services to a major branch of the U.S. government military for a twelve-month term.
David Hershberg, Chief Executive Officer and Chairman of Globecomm Systems Inc., said, "GNSC is gaining a reputation for providing world class service on a global basis resulting in these types of contract awards. Globecomm has invested significant amounts of capital over the last five years in GNSC as we continue to transform our business model from a pure systems integration model to a service oriented model with a more predictable recurring revenue stream. The service business is significantly different from the Company's traditional system integration business in that once critical revenue mass is achieved to cover the required fixed expenses, incremental revenue results in much greater flow through to the bottom line."
About Globecomm Systems
Globecomm Systems Inc. provides end-to-end value-added satellite-based communication solutions by leveraging its core satellite ground segment systems and network capabilities, with satellite communication services capabilities. The solutions Globecomm offers include general contracted complex communications networks, militarized commercial off the shelf products and services, voice over Internet Protocol (VOIP), video broadcast, business recovery, satellite-based terrestrial restoral, content delivery and other networks on a global basis. Globecomm's customers include communications service providers, commercial enterprises, Internet Service Providers, content providers and government entities.
Based in Hauppauge, New York, Globecomm Systems also maintains offices in Washington D.C., Hong Kong, the United Kingdom and the United Arab Emirates.
Globecomm Systems Inc., 45 Oser Avenue, Hauppauge, NY 11788-3816, USA.
TEL: 631 231-9800, FAX: 631 231-1557;
Email: ir@globecommsystems.com; Web: www.globecommsystems.com.
Certain of the statements contained in this press release may be deemed forward-looking statements. Such statements, and other matters addressed in this press release, involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially from these statements and matters include risks and other factors detailed, from time to time, in the Company's reports filed with the Securities and Exchange Commission, including, but not limited to, the Company's Annual Reports for the year ended June 30, 2004 on Form 10-K and its Quarterly Reports on Form 10-Q, which the Company urges investors to consider. These risks and other factors include, but are not limited to general and political and economic instability in the United States and abroad, including the hostilities in Iraq and Afghanistan. Also, we cannot assure investors that we will win additional network services contracts from U.S. enterprise customers or from the U.S. military.
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