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, 2024:
Location Property Type Square Footage Lease Expiration
Satellite and Space Communications
Chandler, Arizona A Manufacturing and Engineering and Corporate Headquarters 146,000 July 2036
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
Cypress, California E Support, Engineering and Sales 28,000 July 2025
Tempe, Arizona A Manufacturing and Engineering 20,000 January 2027
Various facilities F Support, Engineering and Sales 19,000 Various
Plano, Texas E R&D and Engineering 12,000 August 2025
Saint-Laurent, Canada G Manufacturing, Engineering, Sales and General Office 12,000 June 2029
460,000
Terrestrial and Wireless Networks
Seattle, Washington H Network Operations, R&D, Engineering and Sales 30,000 October 2033
Stoughton, Massachusetts I Network Operations 26,000 March 2025
Annapolis, Maryland J Support, Engineering and Sales 17,000 July 2026
Gatineau, Canada K Network Operations, R&D, Engineering, Sales and General Office 16,000 April 2028
Chicago, Illinois K General Office 4,000 September 2024
93,000
Corporate
Melville, New York L General Office 9,600 August 2027
Annapolis, Maryland J General Office and Common Areas 2,000 July 2026
11,600
Total Square Footage 564,600
A. To support our long-term business goals, we entered a 15-year lease for a new 146,000 square foot high-volume technology manufacturing facility in Chandler, Arizona. In fiscal 2023, we completed the relocation of certain of our satellite ground infrastructure production facility operations to this new facility, which reduced our Tempe, Arizona footprint to 20,000 square feet through January 2027. The Chandler, Arizona facility utilizes state-of-the-art design and production techniques, including analog, digital and RF microwave production, hardware assembly and full-service engineering. In fiscal 2024, this location became our new corporate headquarters.
B. Our Satellite and Space Communications segment engineers and manufactures our over-the-horizon microwave troposcatter 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 (Basingstoke), United Kingdom, where we previously manufactured high precision full motion fixed and mobile X/Y satellite tracking antennas. As a result of our fourth quarter fiscal 2024 decision to exit this product line, we are currently in discussions with each landlord regarding our exit and termination of such facility leases.
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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 maintains office space in Cypress, California and Plano, Texas used primarily for R&D, engineering, sales and customer support.
F. Our Satellite and Space Communications segment leases an additional five facilities, four of which aggregate 16,000 square feet and are located in the U.S. with the remaining facility aggregating 3,000 square feet located in 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 Saint-Laurent, Canada, used primarily for sales, engineering, manufacturing and general office use.
H. 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.
I. 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.
J. Our Terrestrial and Wireless Networks segment maintains office space in Annapolis, Maryland used primarily for the design and development of our software-based systems and applications and network operations for our Terrestrial and Wireless Networks segment.
K. 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. We exited our Chicago, Illinois office in September 2024. Our facility in Gatineau, Canada is subject to expropriation by the City of Gatineau and we expect to exit this facility and enter into a new lease agreement for an alternate facility in calendar 2025.
L. Our Unallocated segment maintains general office space in a building complex located in Melville, New York for certain company-wide functions.
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.
In fiscal 2024, as part of the divestiture of our solid-state RF microwave high power amplifiers and control components product line, we no longer lease the 45,000 square foot engineering and manufacturing facility in Melville, New York or the 8,000 square foot facility in Topsfield, Massachusetts.
As part of our environmental related initiatives, we were able to reduce our total company-wide square footage of our various facilities for a total three-year reduction of 288,000 sq. ft. or 33.8%.
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