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ViaSat to Help Upgrade US Navy's Communications Network

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Global broadband services and technology company, ViaSat Inc. (VSAT - Free Report) recently won a sole-source contract in support of the U.S. Navy's joint Ultra High Frequency (“UHF”) military satellite communications (satcom) system from the Space and Naval Warfare Systems Command (SPAWAR).

This contract covers engineering, technical services and hardware/software products. Under the contract, ViaSat will help maintain and upgrade the joint UHF military satcom network integrated control system, UHF satcom channel controllers as well as user terminals. Additionally, ViaSat will enable a modern crypto design for next-generation UHF terminals.

Per SPAWAR, this award has a face value of $48,270,580, and is an indefinite-delivery/indefinite-quantity, firm-fixed-price, cost-plus-fixed-fee contract. It has a five-year ordering base period up to the contract award amount, with an option for another five-year ordering period. 

This award will aid in preserving the long-term viability of proven UHF systems. It reflects the Navy's dedication to using verified UHF radios and channel controllers and diminishing risk with non-fielded communications systems, thus ensuring enhanced capabilities for the war fighter in the future.

ViaSat is a dominant player in UHF satellite communications for defense organizations, offering a range of services from single-user terminals to complete UHF sovereign channel control systems.

VIASAT INC Price and Consensus

 

VIASAT INC Price and Consensus | VIASAT INC Quote

ViaSat’s Government Systems segment revenues have been growing steadily in recent times. In the company’s recently-reported first-quarter fiscal 2017 results, ViaSat’s Government Systems segment reported record revenues of $145.2 million. This was primarily fuelled by robust performance in government satellite communications systems products.

ViaSat currently carries a Zacks Rank #2 (Buy). Other stocks in the same space that are worth a look now include Motorola Solutions, Inc. (MSI - Free Report) , Clearfield, Inc. (CLFD - Free Report) and QUALCOMM Incorporated (QCOM - Free Report) , each holding the same rank as ViaSat.

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