The new teleport business contracts, to provide satellite communication services across the Middle East and Australasia, are worth $5 million in additional revenue and are incremental to the Company’s existing customer base. The $5 million of new teleport business contract wins in FY14 include:
- $2.4 million as a sub-contractor supporting a USG systems integrator to provide satellite communication services to a US government agency for a communications network in the PACOM region. NewSat’s contract in support of this US Department of Defense network has a base period along with four one-year option terms, which if exercised, have a total contract value of $2.4 million
- $2.1 million of new contracts with a US based systems integrator to provide satellite communications to US government personnel in the Middle East
- Multiple new contracts with systems integrators to provide satellite communications to mining, oil, gas and construction customers across Australia and Papua New Guinea
NewSat Founder and CEO, Adrian Ballintine said, “After last financial year’s solid result, these new contracts are further building blocks to cement a great start to the year for NewSat. The consistent growth in our base teleport business and the ongoing global demand for communications underpins NewSat’s strategic growth project, the Jabiru Satellite Program.
“Supporting US government agencies in the harsh and remote Middle Eastern region is testament to our ability to provide secure services and quality support in a mission critical environment.
“We are also pleased to see a significant increase in confidence in the Australian market, through a positive rebound in the number of new resource related projects and expansions on the horizon. This has resulted in some new contracts and a healthy sales pipeline for the future.”