Viasat, Inc. Secures $33.6 Million Contract from U.S. Air Force Research Lab for AESA Systems
Viasat, Inc. (NASDAQ: VSAT), a leading satellite communications company, has landed a lucrative $33.6 million contract from the U.S. Air Force Research Laboratory (AFRL) to develop Active Electronically Scanned Array (AESA) systems. This partnership is part of the Defense Experimentation Using the Commercial Space Internet (DEUCSI) program, which aims to enhance satellite communications resiliency for tactical aircraft.
The DEUCSI program focuses on leveraging commercial satellite connectivity to create a hybrid network that can access various frequencies, orbits, and providers. Viasat's expertise in commercial AESA technology, integration, and RFIC will play a crucial role in building a new phased array antenna. This antenna will provide increased flexibility and reliability to meet dynamic mission requirements and the need for resilient communications.
The AESA antenna developed by Viasat offers high performance with low size, weight, and power specifications, allowing tactical aircraft to stay connected across different networks and frequencies. This system eliminates the need for moving parts, enhances performance, and improves aerodynamics for aircraft. Moreover, the antenna systems are essential for military operations requiring multiple beams, low probability of intercept, and jamming resistance capabilities.
Michael Maughan, Viasat Government's Vice President of Space and Mission Systems, is excited about applying the company's AESA technology to the DEUCSI program. He highlights the importance of hybrid resilient communication solutions for future government mobility operations.
In addition to this contract, Viasat has been making strides in phased array antenna technology development across various domains. The company's acquisition of Inmarsat in May 2023 further solidifies its position in global communications, focusing on delivering high-quality, reliable, and secure connections worldwide.
Analyzing Viasat's recent developments and financial performance, the company's market capitalization of $1.64 billion underscores its strong presence in the satellite communications industry. While the company has not been profitable in the last twelve months, analysts predict a turnaround this year, indicating positive prospects for its operations.
InvestingPro data reveals that Viasat trades at a low Price / Book multiple of 0.33, suggesting potential undervaluation relative to its assets. The company's high shareholder yield may attract investors seeking returns through stock price appreciation. Despite recent stock price fluctuations, Viasat's liquid assets exceed its short-term obligations, providing financial stability for initiatives like the DEUCSI program.
For a more comprehensive analysis of Viasat's financial metrics and projections, InvestingPro offers additional tips and insights to help investors understand the company's financial position and market potential.