AST SpaceMobile Announces New Contract Award with United States Government Through Prime Contractor
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The recent contract award to AST SpaceMobile by a prime contractor working with the United States Government signifies a pivotal development for the company. The engagement with the government sector often implies a high level of credibility and stability in revenue streams, given the long-term nature and scale of government contracts. This is particularly relevant for investors as it may suggest a diversification of AST SpaceMobile's customer base beyond commercial entities, potentially reducing business risk.
From a market perspective, the dual-use capabilities of AST SpaceMobile's technology, which cater to both commercial and government clients, could position the company favorably within the competitive landscape of space-based communication providers. This diversification is a strategic advantage that could lead to more stable stock performance, especially in volatile market conditions.
The undisclosed financial details of the contract with AST SpaceMobile prompt a cautious approach to valuation. However, the fact that it is revenue-generating is a positive indicator of immediate financial impact. The use of the BlueWalker 3 satellite and the planned next five commercial satellites for this contract suggests a clear path for capital deployment and an increase in asset utilization, which could improve the company's return on investment over time.
Investors should monitor the company's future financial disclosures for the specific impact of this contract on earnings, as well as any guidance on future government contracts that could signal growth in this sector. The company's growth trajectory should be evaluated in the context of the broader industry's performance and the increasing demand for space-based communication solutions.
AST SpaceMobile's patented technology, particularly its large phased array antenna technology, is at the forefront of space-based cellular broadband innovation. The ability to provide robust and resilient communication solutions directly to smartphones without the need for specialized hardware is a game-changer. It has the potential to expand the current market for mobile broadband services and create new use cases, especially in remote areas where traditional cellular infrastructure is not feasible.
This contract could also serve as a catalyst for further innovation within the space and telecommunications sectors, as government partnerships often require adherence to stringent performance and security standards. These standards could drive technology advancements that benefit both government and commercial markets, potentially leading to broader industry shifts.
“We are thrilled to announce this initiative with the United States Government,” said Chris Ivory, Chief Commercial Officer and Head of Government Business of AST SpaceMobile. “We believe our patented technology, leveraging our large phased array antenna technology in space, creates opportunities for new mission-critical capabilities in the government sector. We are creating new robust and resilient communications solutions while also facilitating new use cases.”
AST SpaceMobile was awarded a revenue-generating contract to perform certain tasks on the company’s space-based network in low Earth orbit. This initial firm-fixed-priced contract, for an undisclosed amount, will be supported by the company’s BlueWalker 3 satellite in orbit today, as well as its next five commercial satellites. Revenue-generating contracts like this mark a significant milestone in AST SpaceMobile’s growth trajectory and highlight the versatile, dual-use capabilities of its technology.
About AST SpaceMobile
AST SpaceMobile is building the first and only global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on our extensive IP and patent portfolio. Our engineers and space scientists are on a mission to eliminate the connectivity gaps faced by today’s five billion mobile subscribers and finally bring broadband to the billions who remain unconnected. For more information, follow AST SpaceMobile on YouTube, X (Formerly Twitter), LinkedIn and Facebook. Watch this video for an overview of the SpaceMobile mission.
Forward-Looking Statements
This communication contains “forward-looking statements” that are not historical facts, and involve risks and uncertainties that could cause actual results of AST SpaceMobile to differ materially from those expected and projected. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believes,” “estimates,” “anticipates,” “expects,” “intends,” “plans,” “may,” “will,” “would,” “potential,” “projects,” “predicts,” “continue,” or “should,” or, in each case, their negative or other variations or comparable terminology.
These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside AST SpaceMobile’s control and are difficult to predict.
Factors that may cause such differences include, but are not limited to: (i) expectations regarding AST SpaceMobile’s strategies and future financial performance, including AST’s future business plans or objectives, expected functionality of the SpaceMobile Service, anticipated timing of the launch of the Block 1 Bluebird satellites, anticipated demand and acceptance of mobile satellite services, prospective performance and commercial opportunities and competitors, the timing of obtaining regulatory approvals, ability to finance its research and development activities, commercial partnership acquisition and retention, products and services, pricing, marketing plans, operating expenses, market trends, revenues, liquidity, cash flows and uses of cash, capital expenditures, and AST’s ability to invest in growth initiatives; (ii) the negotiation of definitive agreements with mobile network operators relating to the SpaceMobile service that would supersede preliminary agreements and memoranda of understanding and the ability to enter into commercial agreements with other parties or government entities; (iii) the ability of AST SpaceMobile to grow and manage growth profitably and retain its key employees and AST SpaceMobile’s responses to actions of its competitors and its ability to effectively compete; (iv) changes in applicable laws or regulations; (v) the possibility that AST SpaceMobile may be adversely affected by other economic, business, and/or competitive factors; (vi) the outcome of any legal proceedings that may be instituted against AST SpaceMobile; and (vii) other risks and uncertainties indicated in the Company’s filings with the SEC, including those in the Risk Factors section of AST SpaceMobile’s Form 10-K filed with the SEC on March 31, 2023.
AST SpaceMobile cautions that the foregoing list of factors is not exclusive. AST SpaceMobile cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors incorporated by reference into AST SpaceMobile’s Form 10-K filed with the SEC on March 31, 2023. AST SpaceMobile’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, AST SpaceMobile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240207651001/en/
Investor Contact:
Scott Wisniewski
investors@ast-science.com
Media Contact:
Allison
Eva Murphy Ryan
917-547-7289
AstSpaceMobile@allisonpr.com
Source: AST SpaceMobile, Inc.
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