Dow Jones Business News
Eagle Broadband Inks Distribution Pact With General Dynamics For Global, Satellite-Based Voice And Data Commun Services
Tuesday October 28, 2:55 pm ET
LEAGUE CITY, Texas (Dow Jones)--Eagle Broadband Inc. granted U.S. and U.K. distribution rights for its Orb'Phone Exchange product to General Dynamics Corp. (NYSE:GD - News) .
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According to the terms of the five-year deal, General Dynamics' Decision Systems unit will sell and support the satellite voice- and data-communications product to government and military markets, including the U.S. Department of Defense, General Services Administration and Defense Information Systems Agency.
In a press release Tuesday, Eagle said Orb'Phone, using the Iridium satellite service, can be used in non-line-of-sight environments, such as within buildings, underground, or aboard in-flight aircraft.
Financial terms of the agreement weren't disclosed.
Eagle Broadband's stock recently traded at 67 cents, up 13 cents, or 24.1%, on the American Stock Exchange. Composite volume was 27.4 million shares, compared with the stock's average daily trading volume of 3.8 million shares. The price marked a new 52-week high for the shares, whose previous high was 63 cents set Aug. 26.
Eagle had revenue of $29.8 million for the year ended Aug. 31, 2002 and $9.5 million for the nine months ended May 31, 2003. General Dynamics, a Falls Church, Va.-based aerospace and defense contractor, had $13.83 billion in sales in 2002.
Company Web site: eaglebroadband.com
-Nora Devine; Dow Jones Newswires; 201-938-5400
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