s of the company’s technologies for use in oncology and hypothermic cancer treatment systems. These systems improve treatment precision, reduce marginal costs and allow for higher insurance reimbursement rates. Customers Commercial Solutions Segment Representative Customers The company’s customers include satellite systems integrators, wireless and other communication service providers, and broadcasters; and domestic and international defense customers, as well as the U.S. and foreign governments, prime contractors and system suppliers, such as L-3 Communications, Harris Corporation, General Dynamics Corporation, Raytheon Company and ViaSat Inc. The company’s customers also include satellite broadcasters, such as The DIRECTV Group and EchoStar Corporation, as well as end-customers, such as AT&T Inc.; BT Group plc.; China Mobile Limited; Embratel Participações S.A.; Intelsat, Ltd.; Globecomm Systems, Inc.; O3b Networks; and Rockwell Collins, Inc. Government Solutions Segment Representative Customers The company’s customers include the U.S. Army logistics community, the U.S. Army war-fighter community, foreign governments, prime contractors to the U.S. Armed Forces and NATO; and domestic and international defense customers, prime contractors and system suppliers, such as Raytheon Company, Exelis Inc., EADS and Thales Group. The company’s customers also include medical equipment companies, such as Varian Medical Systems, Inc.; aviation industry system integrators, such as Rockwell Collins, Inc.; the U.S. government customers in the Middle East, Europe, North Africa and Latin America, and related prime contractors and systems integrators; and oil companies, such as Shell Oil Company and Petronas. Research and Development The company’s research and development expenses included $42.2 million for the year ended July 31, 2016. Regulations The company’s products that are incorporated into wireless communications systems must comply with various government regulations, including those of the Federal Communications Commission. The company’s manufacturing facilities, which might store, handle, emit, generate and dispose of hazardous substances that are used in the manufacture of its products, are subject to various local, state and federal regulations, including those issued by the Environmental Protection Agency. The company’s products are also subject to European Union directives related to the recycling of electrical and electronic equipment. The company’s international sales are subject to the U.S. and foreign regulations, such as the International Traffic in Arms Regulations, the Export Administration Regulations, and the trade sanctions laws and regulations administered by the U.S. Department of the Treasury’s Office of Foreign Assets Control. The company’s financial reporting, corporate governance, public disclosure and compliance practices are governed by laws, such as the Sarbanes-Oxley Act of 2002, Dodd-Frank Act of 2010, and rules and regulations issued by the Securities and Exchange Commission. Competition Commercial Solutions: The company competes with Airbus DS Communications; Advantech Wireless Inc.; CalAmp Corp.; COM Dev International Ltd. (a subsidiary of Honeywell, Inc.); Comverse Technology Inc.; CPI International, Inc.; Datum Systems, Inc.; 8x8 Inc.; Emergency CallWorks; Ericsson LM Telephone Co.; Gilat Satellite Networks Ltd.; Gogo Inc.; Google Inc.; Harris Corporation; iDirect, Inc.; Intermap Technologies Corp.; Iridium Communications Inc.; KVH Industries Inc.; Newtec; Nokia Networks; NovelSat; Orbcomm, Inc.; Paradise Datacom LLC (a subsidiary of Teledyne Corporation); Solacom Technologies Inc.; Telenav, Inc.; ViaSat, Inc.; West Corporation; and Xura, Inc. Government Solutions: The company competes with Aethercomm, Inc.; CACI International Inc.; CalAmp Corp.; Computer Sciences Corporation; DB Control Corp. (a subsidiary of HEICO Corp.); E2V Technologies Ltd.; Empower RF Systems, Inc.; General Dynamics Corporation; Harris Corporation; L-3 Communications Holdings Inc.; Mercury Systems, Inc.; NeuStar, Inc.; The KEYW Holding Corporation; Northrop Grumman Corporation;
68 South Service Road
Melville, NY 11747
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