has been awarded a five-year agreement with a major media production and distribution company in the United States valued at $22 million.
The agreement includes options, which if exercised brings the total contract value to $32 million.
Pursuant to the agreement, Globecomm will provide origination, monitoring and uplinking services for the media company's channel portfolio. Globecomm will also design and construct a state-of-the-art network operations center and dedicated uplink facility (the facility) at its world headquarters in Hauppauge, NY, which will be utilized to broadcast the media company's content to authorized sites throughout the United States. The Company anticipates completion of the facility in its fiscal third quarter ending March 31, 2007 and anticipates recognizing revenues under the agreement soon thereafter.
Throughout the past five years, Globecomm has invested a significant amount of capital expanding its service line offerings beyond Internet Protocol based voice and data services, to include broadcast video and positioning the Company for the IPTV revolution.
Globecomm's video capabilities have expanded to include the turnaround and monitoring of 24 video channels on a global basis and the design and installation of one of the industry's first satellite-based IPTV facilities.
David Hershberg, Chief Executive Officer and Chairman of Globecomm Systems Inc., said: "Globecomm's vision, investment and commitment to the multi-faceted video broadcast and IPTV space has resulted in this very prestigious multi-year contract award and we are thrilled to have been selected. Globecomm's world headquarters has rapidly evolved into a major point-of-presence for next generation voice, data, video and multi-media network services. The Company possesses some of the world's most experienced IPTV broadcast engineers who have designed and installed major uplink facilities around the globe, with the most recent major accomplishment being the design and integration of the new SES Americom IP Prime Broadcast Center. These factors played a significant role in the decision to award the Company this contract."
Mr. Hershberg continued, "Over the past twelve months, Globecomm has announced a broad range of prestigious long-term satellite-based contracts ranging from the Company's involvement in the Federal Aviation Administration's Telecommunications Infrastructure program through our subcontract from Harris Corporation, to our selection by Raytheon supporting the National Weather Service's Advanced Weather Interactive Processing System, the recently announced NATO Force Tracking System and now this major award. The progress the Company has made on these fronts, including this new broad-based agreement, has positioned Globecomm as a premium provider of voice, data and video services globally. These awards demonstrate the diversity of skill sets of our engineering staff and should provide a backdrop of stabilized growth for the foreseeable future."