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BRAMPTON, Ontario - MDA Space Ltd. (TSX:MDA), a $4 billion market cap space technology company whose stock has surged nearly 50% year-to-date according to InvestingPro, announced Monday that EchoStar Corporation (NASDAQ:SATS) has terminated their satellite constellation contract that was originally announced on August 1.
According to a press release statement, EchoStar’s decision to terminate the contract comes as a result of a strategic shift following spectrum allocation discussions with the Federal Communications Commission. EchoStar has agreed to sell its AWS-4 and H-block spectrum licenses to SpaceX.
MDA Space indicated that the termination is unrelated to the company’s performance and noted that it will receive compensation for all termination costs and fees as stipulated in the contract.
Despite this development, MDA Space maintains a $4.6 billion backlog, excluding the terminated EchoStar contract. The company reaffirmed its fiscal 2025 financial outlook and guidance that was previously announced on August 7.
MDA Space, which specializes in robotics, satellite systems and geointelligence, continues to pursue opportunities in digital satellite constellations for both broadband data and direct-to-device communication satellites with commercial and government customers globally.
The company is hosting a conference call on Monday to discuss the contract development with interested parties.
In other recent news, MDA Space Ltd. has been selected by the Canadian Space Agency to conduct an early-phase study for the proposed Lunar Utility Vehicle, marking a step forward in defining the mission concept and technology development plan. The company also announced a significant achievement in satellite communication technology by successfully demonstrating digitally formed and steered multiple beams with its Ka-band direct radiating array, an industry first. Additionally, MDA Space extended its maritime surveillance contract with Fisheries and Oceans Canada to provide satellite data and analytics services, with future plans to utilize data from its next-generation Earth observation constellation.
In another development, MDA Space has taken over the operation of the David Florida Laboratory in Ottawa, ensuring the continuation of spacecraft testing facilities in Canada. The company has also secured $60 million in contracts to deliver and integrate sensor systems for the Royal Canadian Navy’s River-class Destroyer program, enhancing situational awareness and vessel protection. These recent developments underscore MDA Space’s ongoing contributions to space technology and defense systems.
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