Spacecom (TASE: SCC) announced today that it has signed an agreement with an international communications provider for the provision of satellite communications services via the AMOS-4 satellite, using the Ku-band frequency, along with additional related services, for a period of 24 months. The first phase of the service is set to commence this month and will gradually ramp up over the coming months. The total expected revenue from this agreement is approximately $3.6 million over the contract period. Following the announcement, Spacecom’s stock surged by 14.91% (as of 12:36 PM).
According to the agreement, the customer has until the end of February 2025 to notify Spacecom if they intend to forgo part of the service. If such a notice is given, the total expected revenue from the agreement will decrease by approximately $580,000. Additionally, the customer has the option to terminate all service components after 12 months from the start of each phase. Should the customer choose to fully terminate all service components, the total expected revenue from the agreement would amount to approximately $1.8 million, assuming the aforementioned option was not exercised. If both service reduction options are exercised, the total expected revenue would stand at approximately $1.5 million.
Meanwhile, Spacecom and its bondholders are still awaiting the Israeli Ministry of Communications’ approval for the restructuring agreement reached between the parties, which has already been approved by the court and bondholder assemblies. Commenting on this, Spacecom CEO Dan Zajicek expressed optimism regarding the swift approval of the deal, enabling the company to maintain its current growth momentum.
“Spacecom is experiencing a strong period in terms of the agreements we are securing. While this deal is based on AMOS-4, it is worth noting that the onboarding of new customers on AMOS-17 is progressing faster than expected, surpassing our initial targets. The approval of the bondholder agreement and the new ownership structure will strengthen the company’s financial position and further enhance our business performance,” Zajicek stated.
