NextPlat's Global Telesat Receives Connectivity Services Contract Extension from Military Customer
Rhea-AI Summary
NextPlat Corp (NASDAQ: NXPL) announced that its subsidiary, Global Telesat Communications (GTC), has secured a one-year extension for a wireless connectivity services contract from an African military customer. The contract, initially awarded in Q1 2024, includes Iridium Push-To-Talk (PTT) device hardware and airtime services, with options for additional future purchases.
The extension represents a continuation of what was previously the largest contract of its type in the company's history. The hardware and airtime services sales under this contract are not affected by recent US tariffs. The Iridium Extreme® PTT devices provide instant, secure, and reliable global communication, particularly valuable for government, military, and enterprise customers operating in challenging environments.
Positive
- Contract extension represents continuation of company's historically largest contract of its type
- High-margin recurring airtime services contribute to revenue growth through 2025
- Contract includes options for additional future hardware purchases
- Sales under this contract are exempt from recent US tariffs
Negative
- None.
News Market Reaction 1 Alert
On the day this news was published, NXPL declined 10.68%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Contract Renewal for Hardware and High Margin Recurring Airtime Services Expected to Contribute to Continued Growth in Connectivity Services Revenue Throughout 2025
The original contract for Iridium Push-To-Talk (PTT) device hardware and related airtime services from this military customer was awarded to GTC in the first quarter of 2024 and at that time, represented the largest contract of its type received by the company in its history. The extension contract includes options for additional future hardware purchases and annual airtime services. All hardware and airtime services sales under this contract are not subject to any recently imposed US tariffs.
Increasingly popular with government, military and enterprise customers, the Iridium Extreme® PTT devices provide instant, secure, and reliable communication anywhere in the world, making them an essential tool for multi-national operations, emergency response, and remote fieldwork. Designed for use in the most challenging environments, the devices offer global coverage, rugged durability, and advanced push-to-talk capabilities, enabling teams to stay connected at the push of a button.
"The renewal of this significant hardware and connectivity services contract is further evidence of value and growing international interest in Iridium PTT devices we are seeing from a diverse range of government and enterprise organizations. We are honored that this customer has chosen us to continuing supporting their connectivity needs and we look forward to further building upon the trust they have placed in us to keep their personnel connected," said David Phipps, President of NextPlat and CEO of Global Operations, and Managing Director of Global Telesat Communications.
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About NextPlat Corp
NextPlat is a global e-commerce platform company created to capitalize on multiple high-growth sectors and markets including technology and healthcare. Through acquisitions, joint ventures and collaborations, the Company intends to assist businesses in selling their goods online, domestically, and internationally, allowing customers and partners to optimize their e-Commerce presence and revenue. NextPlat currently operates an e-Commerce communications division offering voice, data, tracking, and IoT products and services worldwide as well as pharmacy and healthcare data management services in
Forward-Looking Statements
Certain statements in this release constitute forward-looking statements. These statements include the capabilities and success of the Company's business and any of its products, services, or solutions. The words "believe," "forecast," "project," "intend," "expect," "plan," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, any of which could cause the Company to not achieve some or all of its goals or the Company's previously reported actual results, performance (finance or operating), including those expressed or implied by such forward-looking statements. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"), copies of which may be obtained from the SEC's website at www.sec.gov. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.
Media and Investor Contact for NextPlat Corp:
Michael Glickman
MWGCO, Inc.
917-397-2272
mike@mwgco.net
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SOURCE NextPlat Corp.
FAQ
What is the duration of NextPlat's (NXPL) new contract extension with the African military customer?
What type of services and products are included in NXPL's military contract extension?
When was the original contract between NXPL and the African military customer established?
Are NXPL's hardware and airtime services affected by recent US tariffs?
