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Iridium (IRDM) Gets Contract for STL Services From L3Harris
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Iridium Communications (IRDM - Free Report) recently inked a five-year commercial contract with L3Harris Technologies (LHX - Free Report) . Per the agreement, Iridium Satellite Time and Location (STL) service will be utilized in more than 36 L3Harris-operated communications network backbone nodes and Federal Aviation Administration (“FAA”) facilities across the United States.
LHX is a prominent technology-oriented aerospace and defense company that supplies modern defense and commercial technologies across air, land, sea, space and cyber domains. Its private network for the FAA provides voice, data and video communications for the National Airspace System operations.
Leveraging Iridium STL service will allow LHX to replace GPS as a primary timing source. This is likely to better synchronize time within the L3Harris communications network, which is essential for supporting multiple critical infrastructure applications.
IRDM highlighted the importance of its STL service in providing reliable timing synchronization to the data center managers throughout their facilities. STL solutions are not only cost-effective but also successful in critical infrastructure environments where GPS is unreliable.
In April 2024, IRDM acquired Satelles, Inc. The buyout was instrumental in boosting Iridium’s solution portfolio with advanced STL services, currently referred to as Iridium STL. The Iridium STL business is expected to generate more than $100 million in service revenues per year by 2030.
Headquartered in McLean, VA, IRDM is a global provider of mobile voice and data satellite communications network. It works with private, government and non-governmental organizations in the United States and abroad.
IRDM’s performance is witnessing momentum from higher engineering and support revenues due to a rise in activity with the U.S. government. It expects a boost in this revenue segment in 2024 owing to ongoing work on the Space Development Agency contract.
Tough competition (in the software ecosystem) from the likes of Globalstar, Inc, Echostar (SATS - Free Report) and Eutelsat Communications (EUTLF - Free Report) coupled with a leveraged balance sheet, remain headwinds for the company.
Performance of Peers
Headquartered in Englewood, CO, EchoStar is a global provider of satellite service operations, video delivery services, broadband satellite technologies and broadband Internet services. The company also offers innovative network technologies, managed services and various communications solutions for aeronautical, enterprise and government customers.
In January 2024, SATS announced that it acquired DISH network as a wholly-owned subsidiary. The merger between the two companies closed on Dec 31, 2023. The acquisition involved the merger of a wholly-owned subsidiary of EchoStar, led by Charlie Ergen, with DISH Network.
In the last reported quarter, SATS reported total revenues of $4.16 billion, down from $4.53 billion in the year-ago quarter. The downtick was primarily due to a decline in subscribers, particularly in the Pay-TV segment.
Headquartered in Paris, France, Eutelsat is a satellite operator that broadcasts television channels (more than 6,500) to cable and satellite homes. The company's satellites also serve fixed and mobile telecommunications services, TV contribution markets, corporate networks and broadband markets for Internet Service Providers and transport, maritime and in-flight markets.
The company is gaining from double-digit growth in the Mobile Connectivity segment, which contributed 12% to total revenues in the last reported quarter. Segmental revenues were up 28.2% year over year. The segment’s performance is also being driven by the entry into service of the high-throughput satellite, EUTELSAT 10B.
EUTLF also has significant pre-commitments and the commercialization of the final beam on EUTELSAT QUANTUM for a maritime mobility client. The company expects this segment to deliver double-digit growth for the full year owing to steady demand for both GEO and LEO-based connectivity solutions.
However, delay in the availability of the ground network is weighing on revenues. Also, a product mix more slanted toward the sale of user terminals is negatively impacting margins.
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Iridium (IRDM) Gets Contract for STL Services From L3Harris
Iridium Communications (IRDM - Free Report) recently inked a five-year commercial contract with L3Harris Technologies (LHX - Free Report) . Per the agreement, Iridium Satellite Time and Location (STL) service will be utilized in more than 36 L3Harris-operated communications network backbone nodes and Federal Aviation Administration (“FAA”) facilities across the United States.
LHX is a prominent technology-oriented aerospace and defense company that supplies modern defense and commercial technologies across air, land, sea, space and cyber domains. Its private network for the FAA provides voice, data and video communications for the National Airspace System operations.
Leveraging Iridium STL service will allow LHX to replace GPS as a primary timing source. This is likely to better synchronize time within the L3Harris communications network, which is essential for supporting multiple critical infrastructure applications.
IRDM highlighted the importance of its STL service in providing reliable timing synchronization to the data center managers throughout their facilities. STL solutions are not only cost-effective but also successful in critical infrastructure environments where GPS is unreliable.
In April 2024, IRDM acquired Satelles, Inc. The buyout was instrumental in boosting Iridium’s solution portfolio with advanced STL services, currently referred to as Iridium STL. The Iridium STL business is expected to generate more than $100 million in service revenues per year by 2030.
Headquartered in McLean, VA, IRDM is a global provider of mobile voice and data satellite communications network. It works with private, government and non-governmental organizations in the United States and abroad.
IRDM’s performance is witnessing momentum from higher engineering and support revenues due to a rise in activity with the U.S. government. It expects a boost in this revenue segment in 2024 owing to ongoing work on the Space Development Agency contract.
Tough competition (in the software ecosystem) from the likes of Globalstar, Inc, Echostar (SATS - Free Report) and Eutelsat Communications (EUTLF - Free Report) coupled with a leveraged balance sheet, remain headwinds for the company.
Performance of Peers
Headquartered in Englewood, CO, EchoStar is a global provider of satellite service operations, video delivery services, broadband satellite technologies and broadband Internet services. The company also offers innovative network technologies, managed services and various communications solutions for aeronautical, enterprise and government customers.
In January 2024, SATS announced that it acquired DISH network as a wholly-owned subsidiary. The merger between the two companies closed on Dec 31, 2023. The acquisition involved the merger of a wholly-owned subsidiary of EchoStar, led by Charlie Ergen, with DISH Network.
In the last reported quarter, SATS reported total revenues of $4.16 billion, down from $4.53 billion in the year-ago quarter. The downtick was primarily due to a decline in subscribers, particularly in the Pay-TV segment.
Headquartered in Paris, France, Eutelsat is a satellite operator that broadcasts television channels (more than 6,500) to cable and satellite homes. The company's satellites also serve fixed and mobile telecommunications services, TV contribution markets, corporate networks and broadband markets for Internet Service Providers and transport, maritime and in-flight markets.
The company is gaining from double-digit growth in the Mobile Connectivity segment, which contributed 12% to total revenues in the last reported quarter. Segmental revenues were up 28.2% year over year. The segment’s performance is also being driven by the entry into service of the high-throughput satellite, EUTELSAT 10B.
EUTLF also has significant pre-commitments and the commercialization of the final beam on EUTELSAT QUANTUM for a maritime mobility client. The company expects this segment to deliver double-digit growth for the full year owing to steady demand for both GEO and LEO-based connectivity solutions.
However, delay in the availability of the ground network is weighing on revenues. Also, a product mix more slanted toward the sale of user terminals is negatively impacting margins.