ReElement Technologies stock soars after securing $1.4B government deal
BROOMFIELD, CO - SD Government (SDG), the government division of Gogo (NASDAQ:GOGO), a $1.31 billion market cap company currently trading at $9.77, has secured a five-year federal contract to provide multi-band, multi-orbit airborne satellite communications to a U.S. government agency, according to a press release statement issued Monday. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics.
The contract, initially valued at $3 million, consolidates the agency’s aero communications across its fleet under a single agreement. The deal represents a follow-on from Small Business Innovation Research (SBIR) Phase III activity previously conducted by SDG before its merger with Gogo. With a healthy gross profit margin of 51% and strong liquidity indicated by a current ratio of 1.71, Gogo appears well-positioned to execute this contract.
Awarded as a sole-source contract, the agreement will allow the government agency to streamline procurement processes by consolidating multiple contracts. The contract includes provisions for adding new technology and services as they become available during its five-year term.
"We are providing a simple, seamless solution for the agency to procure resilient airborne communications," said Hayden Olson, Head of SDG.
The contract will utilize Gogo’s air-to-ground networks alongside various satellite orbits including low-Earth orbit (LEO), medium-Earth orbit (MEO), high-Earth orbit (HEO), and geostationary orbit (GEO) constellations for Ku- and Ka-band connectivity.
The agency’s operations require consistent, high-bandwidth satellite connections globally with high-level encryption for secure communications. SDG will provide 24/7/365 customer support to maintain mission-critical connectivity.
This marks the first SDG government contract to leverage the company’s integrated multi-orbit, multi-band, and multi-network capabilities, according to the company. With analysts forecasting sales growth and improved net income for the coming year, this contract could contribute to Gogo’s positive momentum. For detailed financial analysis and additional insights, including 8 more exclusive ProTips, visit InvestingPro.
In other recent news, Gogo Inc. has made several advancements in its connectivity offerings. The company announced that it has secured new supplemental type certificates (STCs) for its Galileo FDX antenna system, expanding installation options across various aircraft types. The Federal Aviation Administration issued the first STC for Gogo’s Galileo FDX terminal on Boeing Business Jets, including models like the 737NG-based BBJ1, BBJ2, and BBJ MAX. This certification has already facilitated an initial installation on a Boeing BBJ 737-700IGW aircraft.
Additionally, Gogo’s Plane Simple Ka-band tail mount antenna system received European Union Aviation Safety Agency (EASA) approval for Dassault Falcon 7X and 8X aircraft. The company has also entered the final testing phase for its 5G in-flight connectivity, demonstrating peak speeds of up to 80 Mbps. In another development, EASA approved a Supplemental Type Certificate for Gogo’s Galileo HDX Antenna for Bombardier Global series aircraft. These recent developments highlight Gogo’s ongoing efforts to enhance its connectivity solutions across different aircraft platforms.
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