Item 2. Properties
ITEM 2. PROPERTIES
We consider our facilities to be well maintained and adequate for current and planned production requirements. All of our manufacturing facilities, including those that serve the military market, must comply with stringent customer specifications. We employ formal quality management programs and other training programs, including the International Standard Organization’s quality procedure registration programs.
Historically, we have not owned any material properties or facilities and have relied upon a strategy of leasing. We do not currently own any material properties. The following table lists our primary leased facilities at July 31, 2022:
Location Property Type Square Footage Lease Expiration
Satellite and Space Communications
Chandler, Arizona A Manufacturing and Engineering 146,000 July 2036
Tempe, Arizona A Manufacturing and Engineering 136,000 Various
Orlando, Florida B Manufacturing and Engineering 99,000 April 2026
Hampshire, UK C Manufacturing and Engineering 77,000 November 2030
Santa Clara, California D Manufacturing and Engineering 47,000 April 2026
Melville, New York E Manufacturing and Engineering 45,000 December 2031
Various facilities F Support, Engineering and Sales 22,000 Various
Cypress, California G Support, Engineering and Sales 28,000 July 2025
Plano, Texas G R&D and Engineering 12,000 August 2025
Saint-Laurent, Canada H Manufacturing, Engineering, Sales and General Office 12,000 June 2029
624,000
Terrestrial and Wireless Networks
Seattle, Washington I Network Operations, R&D, Engineering and Sales 58,000 October 2033
Stoughton, Massachusetts J Network Operations 26,000 March 2025
Lake Forest, California K R&D and Engineering 18,000 July 2023
Annapolis, Maryland K Support, Engineering and Sales 17,000 July 2026
Gatineau, Canada L Network Operations, R&D, Engineering, Sales and General Office 16,000 October 2024
Chicago, Illinois L General Office 4,000 September 2024
139,000
Corporate
Annapolis, Maryland K General Office and Common Areas 2,000 July 2026
Melville, New York M Corporate Headquarters and General Office 9,600 August 2027
11,600
Total Square Footage 774,600
A. Although primarily used for our satellite ground station equipment product lines, which are part of the Terrestrial and Wireless Networks segment, both of our business segments utilize, from time to time, our high-volume technology manufacturing facilities in Arizona. These manufacturing facilities utilize state-of-the-art design and production techniques, including analog, digital and RF microwave production, hardware assembly and full-service engineering.
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To support our long-term business goals, in fiscal 2021, we commenced a 15-year lease for a new 146,000 square foot facility in Chandler, Arizona. In fiscal 2022, we began shifting operations related to the production of our satellite ground station products from our existing manufacturing locations, such as Tempe, Arizona, to this new facility. We also signed a new 10-year lease in the United Kingdom to expand our Satellite and Space segment's international manufacturing capabilities. This facility is expected to support the production of X/Y satellite tracking antennas that can be used in connection with the thousands of new LEO, MEO and large HTS satellite constellations reportedly being launched over the next several years. COVID-19 and global supply chain disruptions have delayed efforts to get our new technology manufacturing centers fully operational and have increased our start-up costs. Relocation to the Chandler, Arizona facility is expected to be completed in fiscal 2023, at which point we will reduce our Tempe, Arizona footprint to approximately 20,000 square feet through January 2027.
B. Our Satellite and Space Communications segment engineers and manufactures our over-the-horizon microwave systems and mission-critical satellite equipment in a leased facility in Orlando, Florida.
C. Our Satellite and Space Communications segment currently leases two manufacturing facilities in Hampshire, United Kingdom where we manufacture our high precision full motion fixed and mobile X/Y satellite tracking antennas, RF feeds, reflectors and radomes.
D. Our Satellite and Space Communications segment manufactures certain amplifiers in a leased manufacturing facility located in Santa Clara, California.
E. Our Satellite and Space Communications segment manufactures certain of our solid-state, high-power amplifiers in a 45,000 square foot engineering and manufacturing facility on more than two acres of land in Melville, New York and an 8,000 square foot facility in Topsfield, Massachusetts. We lease the New York facility from a partnership controlled by our former CEO. Our Massachusetts lease is currently on a month-to-month basis and therefore excluded from the table above.
F. Our Satellite and Space Communications segment leases an additional seven facilities, four of which aggregate 16,000 square feet and are located in the U.S. with the remaining three facilities aggregating 6,000 square feet located in Singapore, China and India. All are primarily utilized for engineering, sales, software development, customer support, and general office use.
G. Our Satellite and Space Communications segment maintains office space in Cypress, California and Plano, Texas used primarily for R&D, engineering, sales and customer support.
H. Our Satellite and Space Communications segment maintains office space in Saint-Laurent, Canada, used primarily for sales, engineering, manufacturing and general office use.
I. Our Terrestrial and Wireless Networks segment maintains office space in Seattle, Washington used primarily for servicing and hosting our VoIP and VoWiFi E911 and NG-911 services, and related emerging technologies.
J. Our Terrestrial and Wireless Networks segment maintains office space in Stoughton, Massachusetts used primarily for servicing certain of our state and local municipality NG-911 customers.
K. We have leases for facilities in Annapolis, Maryland and Lake Forest, California used primarily for the design and development of our software-based systems and applications and network operations for our Terrestrial and Wireless Networks segment.
L. Our Terrestrial and Wireless Networks segment maintains office space in Gatineau, Canada and Chicago, Illinois that are utilized for network operations, R&D, engineering, sales of our public safety and location technology solutions and general office use.
M. Our corporate headquarters are located in an office building complex in Melville, New York.
The terms for all of our leased facilities are generally for multi-year periods and we believe that we will be able to renew these leases or find comparable facilities elsewhere.
Also, in fiscal 2022, as part of our environmental related initiatives, we were able to reduce our total company-wide square footage of our various facilities by 78,000 sq ft. or 9.1%.
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