It’s been a rough old week for satellite communications business, SpeedCast International – there was the profit downgrade on Tuesday and sell off that extended into Wednesday, halving the share price from $3.48 to $1.76.
And then yesterday it was back in favour after it announced it had shared in a $US3 billion contract from the US Department of Homeland Security.
The contract will be worth around $USS600 million a year or more over five years.
“Speedcast Government is honoured to have been selected as an awardee under the TacCom II vehicle,” said Speedcast Government chief executive Moe Abutaleb.
“We are committed to bringing leading-edge technologies, equipment, network, and technical services to support DHS and its end users on this important program.”
TacCom II is designed to provide federal agencies with access to the latest tools and technologies. The contract vehicle features equipment (radios, infrastructure and satellite solutions) and services (systems integration, installation, engineering, and operations and maintenance) to ensure end-to-end transmission of mission-critical data.
The equipment and services offered through the contract vehicle can be used for all types of missions including maritime, airborne and land-based,” the release said yesterday.
The end result is that Speedcast shares jumped 9.8% yesterday to $1.89, still a long way from that $3.48 before the earnings downgrade (which was the second in 10 months).