Cubic Completes Acquisition of Vocality International

Cubic Mission Solutions expands C4ISR portfolio offerings and presence in European market

SAN DIEGO – November 30, 2016 – Cubic Corporation (NYSE: CUB) today announced the acquisition of Vocality International, a leading provider of embedded technology that unifies communications platforms, enhances voice quality, increases video performance and optimizes data throughput. The addition of Vocality, which is headquartered in Shackleford, United Kingdom, further expands Cubic Mission Solutions’ (CMS) portfolio in Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) for secure and expeditionary communications, and ISR Processing, Exploitation and Dissemination (PED).

Vocality’s ability to bridge communication platforms and manage networks is essential for businesses, government agencies and military personnel to communicate securely with one another and allows legacy systems to communicate seamlessly with cutting-edge wireless and cellular networks. Vocality is a current partner of Cubic’s subsidiary DTECH and will enhance the content and intellectual property on key Programs of Record currently being delivered by CMS. The purchase price is GB£8 million (US$10 million) subject to other customary adjustments per the terms of the stock purchase agreement.

“The acquisition of Vocality is extremely important to our overall company and C4ISR strategy as Vocality’s solutions expand our offerings and strengthens our business in this emerging area,” said Bradley H. Feldmann, president and chief executive officer of Cubic Corporation. “The addition of Vocality expands our C4ISR portfolio, along with DTECH, GATR and TeraLogics, and will provide further opportunities in higher growth and higher margin markets.”

“We are pleased to welcome Vocality and its employees into the Cubic family,” said Mike Twyman, president of Cubic Mission Solutions. “Vocality is well aligned with our current capabilities and solutions and their technologies will provide additional opportunities to further integrate our architecture, serve our customers in the defense industry and expand offerings for transportation and other key vertical markets.” 

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to the safe harbor created by such Act. Forward-looking statements include, among others, statements about our expectations regarding our preliminary financial results for the fourth quarter and fiscal year ended September 30, 2016 and our expectation that the delayed funding will be received in fiscal year 2017 and that we will experience improved performance in 2017. These statements are often, but not always, made through the use of words or phrases such as “may,” “will,” “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “predict,” “potential,” “opportunity” and similar words or phrases or the negatives of these words or phrases. These statements involve risks, estimates, assumptions and uncertainties that could cause actual results to differ materially from those expressed in these statements, including, among others: actual results for the fourth quarter and fiscal year ended September 30, 2016 may differ materially from our estimates due to the completion of our financial closing procedures, final adjustments and audit of the financial statements, and other developments that may arise between now and the time the financial results are finalized; continued funding delays in the U.S. Department of Defense related orders and our dependence on U.S. and foreign government contracts; delays in approving U.S. and foreign government budgets and cuts in U.S. and foreign government defense expenditures; the ability of certain government agencies to unilaterally terminate or modify our contracts with them; the U.S. government’s increased emphasis on awarding contracts to small businesses, and our ability to retain existing contracts or win new contracts under competitive bidding processes; the effects of politics and economic conditions on negotiations and business dealings in the various countries in which we do business or intend to do business; competition and technology changes in the defense and transportation industries; the effect of adverse regulatory changes on our ability to sell products and services; our ability to identify, attract and retain qualified employees; unforeseen problems with the implementation and maintenance of our information systems; our involvement in litigation, including litigation related to patents, proprietary rights and employee misconduct; our reliance on subcontractors and on a limited number of third parties to manufacture and supply our products; our ability to comply with our development contracts and to successfully develop, introduce and sell new products, systems and services in current and future markets; defects in, or a lack of adequate coverage by insurance or indemnity for, our products and systems; and changes in U.S. and foreign tax laws, exchange rates or our economic assumptions regarding our pension plans. In addition, please refer to the risk factors contained in our SEC filings available at www.sec.gov, including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Because the risks, estimates, assumptions and uncertainties referred to above could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date hereof, and, except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date hereof.