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Addvalue Tech discloses new inter-satellite data relay system service contract
MAINBOARD-LISTED Addvalue Technologies has inked a contract to provide its inter-satellite data relay system (IDRS) service to a low-Earth orbit satellite operator, with the customer committing to an initial order of terminals for a launch programme that starts in 2019.
Disclosing the latest deal on Tuesday, the board said that it expects "a few more IDRS contracts" to be signed up to the end of its financial year on March 31, 2019. It added that the tie-ups are projected to speed up the growth of its IDRS business from the financial year on.
Its new customer will subscribe for at least three years of IDRS service at a pre-agreed price, subject to the satellites being fully ready for the service, said the board.
"Due to non-disclosure obligations, not much detail about the ... customer can be disclosed as of now," it added.
Still, Addvalue noted that it "has chalked up several significant IDRS contracts with various players in the New Space industry" since August 2017, with such deals covering not just IDRS terminal supply and engineering services, but recurring airtime services as well.
It previously said in June 2018 that it had entered into an airtime service agreement until at least 2026. That contract, coupled with a deal to supply IDRS terminals, was pegged as a source of recurring annual revenues to the tune of more than US$40 million.
Addvalue shed 0.1 Singapore cent, or 3.45 per cent, to S$0.028, before the announcement.