CARLSBAD, Calif. – Viasat, Inc. (NASDAQ: VSAT), a prominent satellite communications company, secured a $33.6 million contract from the U.S. Air Force Research Laboratory (AFRL) to create Active Electronically Scanned Array (AESA) systems. This initiative is part of the Defense Experimentation Using the Commercial Space Internet (DEUCSI) program, aimed at bolstering satellite communications resiliency for tactical aircraft, including rotary wing platforms.
The DEUCSI program’s goal is to utilize commercial satellite connectivity and services to address the need for resilient communications through a hybrid network that can tap into various frequencies, orbits, and providers. Viasat’s commercial AESA technology and expertise in integration and radio frequency integrated circuits (RFIC) will be instrumental in developing a new phased array antenna. This antenna is designed to offer enhanced flexibility and reliability for dynamic mission requirements and the demand for resilient communications.
Viasat’s AESA antenna promises high performance with low size, weight, and power (SWAP) specifications, enabling tactical aircraft to maintain connections across different frequencies, orbits, and commercial networks. The system is expected to provide a simplified solution with no moving parts, upgraded performance, and better aerodynamics for the aircraft. Additionally, the antenna systems are crucial for military operations that require multiple beams, low probability of intercept (LPI), and jamming resistance capabilities.
Michael Maughan, Vice President of Space and Mission Systems at Viasat Government, expressed enthusiasm about applying the company’s AESA phased array antenna technology expertise to the DEUCSI program. He emphasized the importance of hybrid resilient communication solutions for future government mobility operations.
This contract follows previous awards Viasat received in August 2023, marking the company’s continued involvement in phased array antenna technology development across various domains, including land, maritime, space, and airborne applications.
Viasat, following its May 2023 acquisition of Inmarsat, continues to expand its global communications network, focusing on high-quality, reliable, and secure connections that positively impact lives worldwide.
The information for this article is based on a press release statement from Viasat, Inc.
In other recent news, Viasat Inc. has experienced a series of significant developments. Deutsche Bank reiterated its Hold rating on Viasat stock, following recent developments in the inflight connectivity market where competitor Starlink has gained approximately 2,500 aircraft contracts. Meanwhile, JPMorgan downgraded Viasat from Overweight to Neutral, following United Airlines’ decision to transition its In-Flight Connectivity (IFC) services from providers including Viasat to Starlink.
Viasat has also announced a $1.25 billion Senior Secured Notes offering, with proceeds intended to fund the redemption of part of its existing notes due in 2026. The company has secured a $153 million contract to provide engineering and network modernization services for the U.S. Army’s Blue Force Tracker program. On the financial front, Viasat reported a tripling of its revenues to $4.5 billion, under the stewardship of Shawn Duffy, who will remain as Chief Accounting Officer after stepping down as CFO.
In terms of strategic partnerships, Viasat has formed alliances with Airbus Defence and Space, and Azercosmos, the national satellite operator of Azerbaijan. Lastly, Viasat’s shareholders approved an amendment and restatement of the company’s 1996 Equity Participation Plan, raising the total shares available for issuance to 59,401,000.
InvestingPro Insights
As Viasat, Inc. (NASDAQ: VSAT) secures a new contract with the U.S. Air Force Research Laboratory, the company’s financial health and market performance offer additional insights. According to InvestingPro data, Viasat operates with a significant market capitalization of $1.64 billion, demonstrating its substantial presence in the satellite communications industry. Despite not being profitable over the last twelve months, analysts predict the company will turn a profit this year, reflecting potential optimism in its operational direction.
InvestingPro Tips highlight that Viasat trades at a low Price / Book multiple of 0.33, which could suggest that the stock is undervalued relative to its assets. This is particularly relevant as the company continues to invest in technology development and expand its global communications network. Additionally, the company has a high shareholder yield, which may appeal to investors looking for companies with a potential return on their investment through stock price appreciation or other means.
On the performance front, Viasat’s stock has experienced high volatility and has fared poorly over the last month, with a 25.32% decrease in its price total return. Despite these short-term fluctuations, the company’s liquid assets exceed its short-term obligations, providing a cushion for its financial obligations and investments in initiatives like the DEUCSI program.
For those interested in a deeper analysis, InvestingPro offers further insights into Viasat’s financial metrics and projections. Currently, there are 10 additional InvestingPro Tips available for Viasat, which can be found at https://www.investing.com/pro/VSAT, providing investors with a more comprehensive understanding of the company’s financial position and market potential.
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