MCLEAN, Va. - Iridium Communications Inc. (NASDAQ: NASDAQ:IRDM), a global satellite voice and data communication provider, announced today a five-year contract with L3Harris Technologies (NYSE: NYSE:LHX).
This agreement will see Iridium's Satellite Time and Location (STL) service implemented across various L3Harris-operated network nodes and Federal Aviation Administration (FAA) facilities in the United States.
The STL service provided by Iridium is designed to ensure precise timing synchronization, which is critical for L3Harris' nationwide network that supports the FAA's National Airspace System operations.
This network is responsible for facilitating voice, data, and video communications for mission support functions. The Iridium STL will serve as a key element in the network's timing architecture, offering an alternative to GPS-based timing sources.
Adtran (NASDAQ:ADTN)'s Oscilloquartz division will supply compact devices capable of receiving the Iridium STL signals, which will be integrated into L3Harris' network to maintain synchronization requirements across the nation.
Iridium's service aims to provide reliable timing synchronization essential for real-time applications running on today's communication networks. Such precision is necessary for tasks like database replications in distributed architectures, where even minor delays can impact operations.
Christina Riley, Iridium's vice president and general manager for Commercial Resilient Time and Location, emphasized the reliability of the Iridium STL solutions, especially in environments where GPS may be unreliable.
In April 2024, Iridium expanded its capabilities by acquiring Satelles, Inc., a leader in satellite-based time and location services. This move underscored Iridium's commitment to offering secure and dependable timing solutions for critical infrastructure.
This information is based on a press release statement from Iridium Communications Inc.
InvestingPro Insights
In the context of Iridium Communications Inc.'s (NASDAQ: IRDM) recent announcement of their five-year contract with L3Harris Technologies, it's worth noting the company's current financial and market position. According to InvestingPro data, Iridium has a market capitalization of approximately $3.09 billion, with a high Price to Earnings (P/E) ratio of 205.45, reflecting a premium that investors are willing to pay for its earnings. Adjusting for the last twelve months as of Q4 2023, the P/E ratio stands at 73.79, which may still be considered high, particularly when compared to the company's near-term earnings growth.
Despite the high valuation multiples, Iridium's revenue has grown by 9.67% over the last twelve months as of Q4 2023, indicating a steady increase in the company's top-line performance. This growth, coupled with a gross profit margin of 71.53%, showcases Iridium's ability to maintain profitability.
From an operational standpoint, Iridium's management has demonstrated confidence in the company's future by aggressively buying back shares, as highlighted by one of the InvestingPro Tips. Additionally, the company's liquid assets exceed short-term obligations, suggesting a solid financial footing for near-term operations.
For readers interested in a deeper analysis, the InvestingPro platform offers additional insights, including a total of 13 InvestingPro Tips for Iridium Communications Inc., which can be found at https://www.investing.com/pro/IRDM. These tips could provide valuable context for the company's strategic decisions, such as the recent acquisition of Satelles, Inc., and the contract with L3Harris Technologies. To access these insights and more, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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