Discussion about potential multi-billion dollar Low Earth Orbit (LEO) business deals
MDA Reports Strong Q4 Earnings and Secures New Starlink Mini Contracts
Canadian space technology company, MDA, has reported a strong financial performance for the fourth quarter of 2023. The company's revenue for the three-month period totalled C$205 million, marking an increase of C$19.9 million compared to the same period last year. This growth was also reflected in the Q4 profit, which stood at C$13.5 million, up from C$8.8 million a year earlier.
The strong momentum in MDA's Satellite Systems business is driven by customer demand for communication satellite constellations. The company has secured three constellation contracts in the past two years, including a strategic Starlink Mini contract for the Telesat Lightspeed LEO constellation valued at $2.1 billion. Currently, MDA is working on three satellite constellations for clients.
One of the significant developments for MDA is the authorization to proceed with a new Non-Geostationary Orbit satellite constellation contract worth $180 million. The full contract for this project is expected to be awarded this year. The company is also engaged in active discussions with potential new customers for satellite-based broadband and IoT applications worth several billions of dollars. These potential customers are likely to be governments, telecommunications companies, and large enterprises seeking advanced Starlink Mini connectivity solutions.
Looking ahead, MDA's 2024 outlook expects full year revenue to total between C$950 million and C$1.05 billion, representing a growth of about 25% compared to 2023. For the first quarter of 2024, MDA expects revenue to be between C$205 million and C$215 million. The current backlog of work for MDA is C$3.1 billion, a 125% increase since the same period last year.
MDA's CEO, Mike Greenley, remains at the helm, leading the company's continued growth and success in the satellite industry. Under his leadership, MDA is poised to continue its momentum in the coming years, meeting the increasing demand for communication satellite constellations and advanced Starlink Mini connectivity solutions.
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