Telecoms tech firm Filtronic has landed a $9m (£7.1m) contract from SpaceX to support the US rocket firm’s Starlink satellites.
Sedgefield and Leeds-based Filtronic says the deal is a continuation of demand for its E-band solid state power amplifier (SSPA) modules that will help the Starlink constellation to deliver high-speed, low-latency internet to customers around the world. Work on the components is due to be completed this year.
It follows a multimillion-pound deal struck between Filtronic and SpaceX, announced in April, that could eventually see the high profile rocket company become a shareholder in the northern tech firm. The £48m ($60m) agreement is based around supply of Filtronic’s SSPAs, but it could also see the two businesses develop new products together for the Starlink system which has brought internet connection to hard to reach areas.
As part of the latest order, a further 2,171,211 share warrants have been vested, meaning a total of 8,684,844 share warrants are now vested. That represents 4%, of the maximum 5%, of Filtronic’s share capital at the time of the signed agreement.
Nat Edington, chief executive officer, said: “We are delighted to receive this further order from our partner, SpaceX, as we continue to support the rollout of the Starlink constellation. The order demonstrates the continued significant role we are playing in helping SpaceX achieve their mission.”
In announcing the original agreement with Filtronic in April, SpaceX’s vice president of Starlink Engineering, Mike Nicolls referred to the London listed firm as an “outstanding” supplier. He said its team had stepped up to meet Starlink’s needs for high quality parts.
As the Starlink constellation is being increased, so too is the ground station network with Filtronic’s tech being used to ensure high speeds and low-latency between earth and the orbiting satellites.
In June, Filtronic said the tie-up had significantly boosted its trading and investors were told the firm’s Ebitda was ahead of market forecasts, with the expectation that full year totals will be “no less than” £4.8m, up from £1.3m last year. Meanwhile, revenue is expected to be £25.4m, up from £16.3m last year.
Filtronic said there had been investment in manufacturing capabilities to make room for further growth potential and provide flexibility as more orders materialise. Mr Edington, who joined the business shortly before deal was announced, said the work with SpaceX provided a platform for development and to capitalise on other work in the market.
Original artice – https://business-live.co.uk/all-about/yorkshire-humber
