Addvalue unit bags new contract worth over US$1m with existing client

ADDVALUE Technologies has secured a new order for multiple space qualified inter-satellite data relay system (IDRS) terminals worth over US$1 million.

The contract, secured by the group's subsidiary Addvalue Innovation, builds on an existing IDRS supply contract with an undisclosed client, the satellite communications company said in a regulatory filing on Tuesday.

A substantial fulfilment of the new order is expected in fiscal 2020 in order to support the client's launch programme in 2019 and 2020.

The new order will also see Addvalue Innovation providing recurring IDRS air-time services, in which the client is expected to subscribe for at least three years at a pre-agreed air-time price. This is subject to the constellation of low-earth orbit satellites being fully IDRS ready, the group added.

The new order follows Addvalue Innovation's delivery of an engineering version of the IDRS terminal, used in integration with the client's satellite bus and ground testing as part of its pre-launch engineering verification process.

Addvalue said it is unable to disclose the identity of the client or further details of its business due to a non-disclosure obligation.

"With gaining momentum, Addvalue anticipates more IDRS contracts to be signed in fiscal 2020 and expects these newly forged partnerships to help accelerate the growth of its IDRS business in fiscal 2020 and beyond," it added.

Addvalue Technologies shares were trading flat at S$0.023 on Tuesday, as at 1.33pm.