Sponsored by TCI International Inc.
www.tcibr.com
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08 Dec 22. Greenbriar Equity Group Announces Acquisition of Applied Aerospace Structures Corporation. Greenbriar Equity Group, L.P. (“Greenbriar”), announced that funds managed by Greenbriar completed an acquisition of Applied Aerospace Structures Corporation (“AASC” or the “Company”), a leading provider of design, fabrication, and testing solutions for complex composite and metal bonded structural assemblies. Financial terms of the private transaction were not disclosed.
Founded in 1954, AASC is the leading provider of complex composite and metal-bonded structures for mission-critical space, aerospace, and defense programs for both commercial and government customers.
“We are thrilled to have selected Greenbriar as our partner for this exciting next chapter,” said Kevin Bidlack, CEO of AASC. “We share a collective vision of accelerating AASC’s growth and enhancing our capabilities. Greenbriar’s extensive experience, knowledge, and resources in our sectors will greatly benefit us during this next phase.”
The new investment by Greenbriar will support the senior management team in executing on AASC’s growth and expansion plans, which include both organic and selective acquisition opportunities to enhance the Company’s solutions to its customers.
“AASC is a truly exceptional business with a long and successful track record supporting industry leading customers in its space and defense programs. We have been impressed by AASC’s customer-centric approach to providing mission-critical, complex components for demanding environments,” said Noah Blitzer, Director at Greenbriar. “We are excited by the Company’s capabilities and growth and are looking forward to partnering with the AASC team to continue their phenomenal trajectory.”
Jefferies Group LLC served as the financial advisor and Kirkland & Ellis LLP served as legal counsel to Greenbriar. Houlihan Lokey, Inc. served as financial advisor and Baker, Donelson, Bearman, Caldwell & Berkowitz P.C. served as legal counsel to the Company.
About Applied Aerospace Structures Corporation
Applied Aerospace Structures Corporation (“AASC”) is a full-service provider of complex composite and metal bonded structures and assemblies for both military and commercial applications, serving mission-critical space, aerospace, and defense programs. Based in Stockton, California, AASC has approximately 330,000 square feet of manufacturing floor space. The company is ISO 9001:2015 and AS9100 Rev D certified and has been in business since 1954. For more information, please visit aascworld.com.
About Greenbriar
Greenbriar is a middle market private equity firm with more than 20 years of experience investing in market-leading services and manufacturing businesses. With more than $8 bn of cumulative capital commitments, its investment strategy targets businesses led by experienced management teams capitalizing on strong long-term growth prospects that can benefit from Greenbriar’s deep sectoral expertise, strategic insight, and operating capabilities. For more information, please visit greenbriarequity.com. (Source: PR Newswire)
08 Dec 22. RTX Ventures invests in EpiSci to further develop next generation autonomy solutions. RTX Ventures, the venture capital arm of Raytheon Technologies (NYSE: RTX), has made a minority investment in autonomous solutions company EpiSci. The investment aligns with Raytheon Technologies’ longstanding leadership in the development of advanced autonomous technologies and will help drive the growth of EpiSci’s Tactical AI technology.
“EpiSci is a leader in rapidly deployable, hardware-agnostic autonomy solutions and a key enabler to the AI-embedded battlefield of the future,” said Daniel Ateya, managing director of RTX Ventures. “As an early investor we plan to support EpiSci’s endeavors in creating a trust-based, collaborative environment between humans and AI-enabled machines.”
As part of this investment, EpiSci will benefit from RTX Ventures’ guidance as the company works to advance and scale its core Tactical AI technology. EpiSci is planning to advance collaborative autonomy solutions and demonstrate the advantages of adopting a model-based autonomy architecture. These areas of potential collaboration have the ability to further enable the development of state-of-the-art tactical autonomy solutions across land, sea, air, and space applications.
“Receiving an investment from RTX Ventures confirms that our model-based hybrid Tactical AI is a viable approach for enabling trusted autonomy for the future,” said Bo Ryu, president of EpiSci. “We firmly believe that our Tactical AI delivers both the trust and performance that human operators need and minimizes the limitations of end-to-end machine learning approaches. With RTX Ventures’ support, we are excited to scale our Tactical AI technology across multiple battlefield domains.”
RTX Ventures supports companies developing technologies that are strategically aligned to the Raytheon Technologies portfolio, with an emphasis on four broad priority areas: secure and connected ecosystems, autonomy and artificial intelligence technologies, power and propulsion systems, and precision sensing and effects.
About Raytheon Technologies
Raytheon Technologies Corporation is an aerospace and defense company that provides advanced systems and services for commercial, military and government customers worldwide. With four industry-leading businesses ― Collins Aerospace, Pratt & Whitney, Raytheon Intelligence & Space and Raytheon Missiles & Defense ― the company delivers solutions that push the boundaries in avionics, cybersecurity, directed energy, electric propulsion, hypersonics and quantum physics. The company, formed in 2020 through the combination of Raytheon Company and the United Technologies Corporation aerospace businesses, is headquartered in Arlington, Virginia.
About EpiSci
EpiSci is a multidisciplinary innovation company that develops next generation mission autonomy solutions for national security problems. The company specializes in delivering the most trusted and resilient autonomous systems from ground to space applications. EpiSci’s Tactical AI technology is powerful, reliable, and quickly adaptable to emerging missions and challenges – from building trustworthy AI pilots and precision sensing and effects for F-22 and F-16 aircrafts, human-centric man-unmanned teaming for next generation air dominance and developing advanced wireless tactical communication systems for first responders, to powering autonomous UAV swarms with sensor fusion. For more information, please visit www.episci.com. (Source: PR Newswire)
09 Dec 22. Systematic maintains robust growth and expands into new markets. The software company Systematic is again presenting solid financial results, posting record revenue of EUR 178m and an operating profit of EUR 23m.
In spite of a turbulent year dominated by war, COVID-19 and a tight labour market, Systematic continues to deliver stable organic growth while posting the biggest revenue – EUR 178m – in the company’s history.
With an order intake totalling EUR 188m compared to EUR 172m for the previous year, there is no sign that the challenges on the global market have dampened the software company’s activities – on the contrary, the company has welcomed a string of new, international customers.
“In 2020, we experienced for the first time that more than half of our orders came from abroad. In line with our strategy, this trend will continue. It means that our exports of solutions for the business areas Healthcare, Defence, Library & Learning and Renewables & Utilities are increasing year on year,” says Michael Holm, CEO at Systematic.
Of the company’s total order intake, 55% came from abroad in 2021/2022.
The operating profit of EUR 23m is down on the previous financial year, and according to Michael Holm, this is because Systematic has invested massively in innovation and product development, particularly within Healthcare and Defence. Systematic has also made significant investments in its internal infrastructure to prepare for expected growth in the coming years, and these investments are reflected in a lower bottom line.
Norway, Switzerland and the USA buy software solutions for health, defence and wind energy
During the financial year, Systematic has entered into contracts with customers from countries that have not previously purchased the company’s solutions.
In Norway, the South-Eastern Norway Regional Health Authority, which comprises 27 hospitals in and around Oslo, has entered into a contract on a solution that will support hospital logistics and make it easier for clinicians and service employees to track and find relevant hospital equipment and resources.
Another important strategic step on the Norwegian market was taken in August, when the City of Oslo’s main library, Deichman, and its 22 local libraries chose Cicero as their future IT platform. In connection with the agreement, 230 of Norway’s 428 libraries said yes to the possibility of being able to acquire and connect to Cicero.
In October, Systematic could add Switzerland as a new customer for its Defence business, when the country signed a contract on the command and control system SitaWare – including the new BI solution SitaWare Insight. By means of artificial intelligence and digital information processing, SitaWare Insight improves the ability of armed forces to very quickly gather and process large volumes of data. SitaWare makes it possible for different sections of the armed forces to collaborate and share information with defence forces in other countries.
“Switzerland is the first country to implement SitaWare Insight, but it is unlikely to be the last. In light of global developments, we are seeing a growing interest in tools which can gather and process data from multiple sources and make it possible to share intelligence with allied forces,” says Michael Holm.
In recent years, Systematic’s marine coordination solution SITE has gained a foothold with significant players in the offshore wind energy sector. In August, we broke into the US market when the large energy group Dominion Energy purchased SITE to coordinate its work tasks, logistics and safety in connection with the erection and operation of 2.6 GW offshore wind farms off the coast of Virginia.
Considerable progress has also been made on the company’s domestic market, where three out of five Danish regions are now using Systematic’s electronic health record (EHR) solution Columna CIS.
“One of the biggest milestones was the implementation and go-live of our EHR at all the hospitals in the Region of Southern Denmark and in North Denmark Region. It’s quite something that our most complex and biggest IT system is now processing half of the Danish population’s patient data in the three regions in west Denmark, and, most importantly of all, that the 60,000+ healthcare professionals who use the system are satisfied with it,” says Michael Holm.
Export case concluded by Public Prosecutor
In autumn 2021, Systematic was the subject of a police investigation following claims in the Danish media that the company had, via its UK subsidiary, violated or tried to circumvent the restrictions imposed on Danish export to the United Arab Emirates. In November 2022, the Public Prosecutor concluded the investigation, as no evidence had been found that Systematic had done anything illegal.
“It was nice to have the matter settled. We have submitted the correct information to the authorities, and we have secured permits for our exports. We are delighted that the Public Prosecutor shares our view, and that a line has now been drawn under the matter,” says Michael Holm.
As CEO for Denmark’s biggest privately-owned software company, Michael Holm believes it is very important that Systematic maintains its independence and stays financially strong. For many years, Systematic has been completely debt-free, and now has equity of EUR 87m and liquid assets of EUR 63m. Against this background, Michael Holm is optimistic about the future.
“We are starting the new financial year with many exciting projects in our order books, and we continue to see significant global interest in our products for the various sectors in society. There’s no doubt that the competition is heating up in several areas, but we still expect to post a similar profit for the next financial year,” he says.
08 Dec 22. SES Government Solutions Changes Name to SES Space & Defense, Reflecting New Strategy and Capabilities.
SES Government Solutions unveils new name to become synonymous with newly expanded capabilities and structure, geared towards the space and defense needs of U.S. DoD.
SES Government Solutions (SES GS), a wholly-owned subsidiary of SES, announced today that it will begin operating under the new name SES Space & Defense effective immediately. The name change comes after combining SES Government Solutions with the recently acquired DRS Global Enterprise Solutions (DRS GES). The SES Space & Defense brand reflects the organization’s new positioning and expanded offering serving the needs of the U.S. Government customers.
Over the past four months, SES Space & Defense saw the appointment of its new leadership team, as well as the integration of capabilities that reflect the newly combined organization and differentiated value proposition. The company is focused on building, managing and supporting the most advanced satellite network solutions for the U.S. Government and Department of Defense (DoD). SES Space & Defense has been restructured to serve its customers across two integral markets – space and defense – by creating two business units, Space Initiatives and Defense Networks, to provide best-in-class satellite network solutions.
The Space Initiatives unit targets fleet-centric projects leveraging SES’s global multi-orbit satellite fleet, infrastructure, and assets. The Defense Networks unit is centered on multi-operator managed services and end-to-end mission-critical communications.
SES Space & Defense’s customers will benefit from new integration capabilities with the addition of the Information & Communications Technology (ICT) Ecosystem and ICT Portal which provides a single pane glass view into network performance, as well as essential tools in cybersecurity.
“This is a major milestone for us, and more importantly for our U.S. DoD customers,” said SES Space & Defense President and CEO David Fields. “In August we consolidated two best-in-class organizations focused on the U.S. Government satellite communications needs, and we remain fully committed to providing innovative world-class space solutions to our most tactical customers. With SES Space & Defense as our new name, we would like our strategic vision and focus to come through brightly.”
About SES Space & Defense
SES Space & Defense is a wholly-owned subsidiary of SES, the leader in global content connectivity solutions, and is exclusively focused on building, managing, and supporting the most advanced satellite network solutions for the U.S. Government. SES Space & Defense leverages a proven multi-operator network integration and management capability, an extensive global terrestrial network, as well as access to SES’s multi-orbit satellite fleet. It also offers U.S. Department of Defense customers the essential tools in cybersecurity for mission-critical operations, coupled with a proven track record in governance and compliance. SES Space & Defense operates under a proxy board, enabling it to support classified projects, and it has been present in the U.S. Government satcom market for over four decades. Further information can be found at: www.ses-gs.com.
About SES
SES has a bold vision to deliver amazing experiences everywhere on earth by distributing the highest quality video content and providing seamless connectivity around the world. As the leader in global content connectivity solutions, SES operates the world’s only multi-orbit constellation of satellites with the unique combination of global coverage and high performance, including the commercially-proven, low-latency Medium Earth Orbit O3b system. By leveraging a vast and intelligent, cloud-enabled network, SES is able to deliver high-quality connectivity solutions anywhere on land, at sea or in the air, and is a trusted partner to the world’s leading telecommunications companies, mobile network operators, governments, connectivity and cloud service providers, broadcasters, video platform operators and content owners. SES’s video network carries ~8,000 channels and has an unparalleled reach of 366m households, delivering managed media services for both linear and non-linear content. The company is listed on Paris and Luxembourg stock exchanges (Ticker: SESG). Further information is available at: www.ses.com. (Source: BUSINESS WIRE)
08 Dec 22. Kaman Announces Next Phase of Transformation.
NYSE:KAMN) Kaman Corporation (the “Company”) today announced actions to continue reshaping the Company’s portfolio, enhance operational efficiency, improve financial performance and position Kaman for long-term growth and sustainable value creation.
“Building on Kaman’s long track record of innovation and active portfolio management, we continue to take decisive actions to unlock value and build a more durable and resilient company,” said Ian K. Walsh, Chairman, President and Chief Executive Officer. “Recent initiatives include investing in talent, segmenting our businesses, expanding the capabilities of our Engineered Products segment with the acquisition of Aircraft Wheel & Brake, selling our underperforming UK and Mexico businesses, consolidating operations at our Jacksonville Structures facility, investing in our autonomy partner, Near Earth Autonomy and launching our new KARGO UAV program.”
Mr. Walsh added, “We know there is more work to do, and as we continue to transform Kaman, we are focusing our investments on the highest growth and highest margin businesses. Our goal is to position Kaman to deliver consistent revenue growth, EBITDA margin expansion, enhanced free cash flow generation and improved return on invested capital, which we believe will drive sustainable, profitable growth and superior shareholder returns.”
Actions Planned by Kaman Include:
- Consolidating Joint Programmable Fuze (“JPF”) production: As the JPF program winds down, the Company will consolidate the production of fuzes at Kaman’s Middletown, Connecticut facility, which has the potential capacity to deliver against future direct commercial sales (“DCS”). Given the completion of the Joint Air-to-Surface Standoff Missile (“JASSM”) program and evolving market trends, the Orlando facility is expected to fully cease operations by the end of 2024. The actions taken with respect to Orlando are expected to result in annualized run-rate cost savings of approximately $12 to $15m and total pre-tax restructuring charges of $8 to $10m.
- Optimizing cost structure to ensure alignment with highest return growth opportunities: Kaman will continue improving its legacy structures programs, enhancing overall execution and focusing on winning new and more profitable programs, including growing the Company’s aftermarket portfolio. In all businesses, Kaman will maintain focus on continuous improvement, reducing variation and inefficiencies in the Company’s value streams. Kaman is also in the process of streamlining and re-sizing the corporate organization to better reflect the current size of the Company, while also executing SG&A reductions at the strategic business unit (“SBU”) level driven by reducing layers, consolidating support functions, eliminating redundancies between corporate and SBU, among other efforts.
These actions support Kaman’s objective to de-lever its balance sheet, improve net working capital, expand gross margins and increase overall EBITDA and free cash flow generation. The Company expects these combined efforts to result in greater alignment of its cost structure with future growth opportunities, enhancing Kaman’s long-term competitive profile.
As part of Kaman’s portfolio reshaping efforts, the management team continues to evaluate the Company’s business lines and programs with the goal of best positioning Kaman to deliver long-term shareholder value creation. The Company plans to provide an estimate of its annualized cost savings objective as well as an update on its ongoing portfolio shaping and cost reduction efforts early in the first quarter of 2023. (Source: BUSINESS WIRE)
06 Dec 22. Slingshot Aerospace Raises $40.85m in Oversubscribed Series A2 Funds to Bolster Orbital Tracking and Space Safety. Slingshot Aerospace, Inc., a company building data and analytics products to make space operations safer, today announced that it has raised $40.85m in an oversubscribed Series A2 funding round. The round was led by Sway Ventures and included participation from others, including C16 Ventures, ATX Venture Partners, Lockheed Martin Ventures, Valor Equity Partners, and Draper Associates, the global venture capital firm of prominent Silicon Valley venture capitalist Tim Draper. In addition to $40.85m in equity funding, Horizon Technology Finance (NASDAQ: HRZN) provided a venture loan to accelerate Slingshot’s growth.
“Slingshot Aerospace continually makes strategic moves that demonstrate an unwavering commitment to making space safer for all of society,” said Najib Khouri-Haddad, General Partner, Sway Ventures. “The massive growth in space operations carries a significant risk as well as an opportunity. Slingshot has aggressively and creatively carved a path to build new technologies that solve critical challenges and greatly reduce risks in space. Our investment in Slingshot is an investment in the future of space as we know it.”
Slingshot Aerospace used a portion of the new funds to finance the recently announced acquisitions of Numerica’s Space Domain Awareness division and Seradata, which further differentiate Slingshot’s products as the most robust and authoritative space situational awareness and space traffic coordination solutions available in the market. Renaissance Strategic Advisors acted as a strategic advisor on the acquisitions.
Slingshot’s funds will also be used to:
- Drive growth across Slingshot’s global commercial, civil, and defense customer base
- Further build out Slingshot’s Global Sensor Network, which already includes 150 sensors and 30 telescopes across 20 locations around the globe
- Accelerate the expansion of Slingshot’s Digital Space Twin™ software platform and commercialization of company products, including Slingshot Beacon
“Our successful funding round during a global economic downturn is validation that investors understand the urgent need for safe and sustainable spaceflight operations as activity in orbit outpaces current space traffic management constructs,” said Melanie Stricklan, Co-founder and CEO, Slingshot Aerospace. “Our mission is to ensure that our customers overcome those vulnerabilities and optimize their critical operations in orbit. We have an unprecedented opportunity in this next phase of growth as we continue to be a driving force to de-risk operations in the space revolution.”
There are more than 10,000 satellites in orbit today according to Slingshot Aerospace’s space object database, Seradata SpaceTrak, with more than 115,000 potentially in space by 2030. This level of commercialization underscores the need for high quality space surveillance and tracking data and purpose built solutions for making space operations safer.
About Slingshot Aerospace
Slingshot Aerospace, Inc. builds space simulation, data and analytics products that help worldwide commercial, civil and defense organizations make space operations safer to accelerate space sustainability. The company synthesizes data from multiple trusted sources, including the newly acquired Global Sensor Network and the Seradata SpaceTrak database, to bring the space domain into the digital environment. With these insights, Slingshot Aerospace customers are empowered to confidently make decisions and achieve clarity in the complexity of the space domain. Slingshot Aerospace was launched in 2017 and maintains offices in Austin, TX, El Segundo, CA, Colorado Springs, and Fort Collins, CO. (Source: BUSINESS WIRE)
06 Dec 22. Synoptek Acquires Optistar Technology. Synoptek, a leading global business and technology consulting firm, today announced it has acquired Optistar Technology Consultants (“Optistar”), the technology services business division of The Vertex Companies, LLC (“VERTEX”) with offices spanning New York, Boston, Denver, and Seattle. The acquisition will be instrumental in expanding Synoptek’s footprint and advancing its capabilities in value-driven managed information technology services, cyber security solutions, digital forensics and software engineering.
This acquisition allows VERTEX to divest its technology services division, Optistar, while also securing a global technology services partner, Synoptek, to support future growth and automation. Both companies are excited about the acquisition, the new partnership and the mutual growth potential.
Synoptek’s unparalleled track record of transforming IT to achieve optimal business results combined with Optistar’s expansive geographic presence and competencies in strategic consulting, cyber defense services and digital and forensic solutions will have a rapid and enduring impact on clients. Blending these offerings with Synoptek’s well-established standards, practices and 24/7 global operations will also bolster expansion in key regions where Optistar is already established and will strategically position the business for regional growth, particularly in the Northeastern region of the United States. Additionally, Synoptek’s diverse service portfolio and global delivery brings an opportunity for Optistar to scale its business, add more value to its customer base and support its growth trajectory.
“We look forward to further developing the Synoptek brand within the Northeast and beyond through the acquisition of the Optistar business,” said Bo Bray, vice president of ITSM at Synoptek. “Bringing both companies together will extend our depth of skills and service offerings to better meet the needs of current and future customers – especially in the realm of digital forensics and cyber defense.”
The synergy and vision between the companies is mutually beneficial, especially when it comes to delivering IT Leadership as a Service, offering exceptional client experiences and providing transformative digital services.
“Joining forces with a well-established business and technology consulting powerhouse like Synoptek enhances the scale and scope of our capabilities. Synoptek’s experienced global team of over 1,000 professionals will serve as an invaluable resource to uphold our mission of delivering exceptional results for our valued clients,” said Mark Jordan, president of Optistar.
The Optistar business will assume the Synoptek brand.
About Synoptek
Synoptek is a global business and technology consulting and advisory firm that helps companies envision, transform and evolve. As a global systems integrator and managed technology services provider, Synoptek partners with organizations worldwide to help them navigate the ever-changing technology landscape and build solid foundations for their business. With its comprehensive offerings, global workforce, and strategic technology partnerships, Synoptek helps organizations grow their business while optimizing and protecting their ecosystem. With growth, ownership, inclusivity, and philanthropy embedded in its DNA, Synoptek is committed to delivering improved business results and unmatched service to all its stakeholders. Discover more at www.synoptek.com, or connect with Synoptek on Facebook, Twitter and LinkedIn.
About Optistar
Optistar Technology Consultants is an IT consulting company focused on delivering the highest caliber managed services, comprehensive cyber security and defense capabilities and cutting-edge IT solutions with exceptional service, support and unparalleled strategic advice. Founded in New York City in 1996, the company has primary offices in Boston, Denver, Seattle and Geneva, as well as other remote work locations across the U.S. and Europe. Learn more at https://optistartech.com/.
About VERTEX
The Vertex Companies, LLC (VERTEX) is the go-to professional services firm in the AEC industry with global reach and local expertise that provides forensic, engineering, environmental and project advisory services. VERTEX sends the right team for the job, no matter the location or complexity of the issue; offers rewarding careers and continuous professional development opportunities; and delivers solutions with a sense of urgency, bringing its client’s meaningful value and peace of mind. Learn more at https://vertexeng.com/ or visit us on LinkedIn.
(Source: BUSINESS WIRE)
06 Dec 22. Gooch and Housego struggling to deliver. The photonic equipment supplier struggled more than most with supply chain disruption.
- Impairment charge on intangible assets
- Increased inventory hit cash flow
Labour shortages and supply chain disruptions undermined Gooch & Housego’s (GHH) earnings for the year. The company, which makes photonic components for aerospace, telecoms and defence industries, saw its profit before tax swing from £4.7m last year to a loss of £2.3mn, despite attempts to pass on rising costs through price rises.
Revenue was flat but there was a wide range of performance across divisions. Aerospace and defence saw sales fall 26 per cent to £30.5m because its “significant deliveries” do not commence for the coming year. This includes a contract for optical sensors for the UK Challenger tank programme.
Meanwhile, the industrial division was boosted by customers near-shoring their production capacity. Revenue increased 16.2 per cent to £64.6m due to investment in semiconductor facilities “driven by growing concerns about dependence upon supply from some Asian sources”.
However, the main issue was not revenue but cash flow. Operating cash flow fell from £16.8m to £6.1m because of supply chain issues. The company had to invest £10m in additional working capital, including £5.6m in inventory “to help protect the group’s production programmes”.
Future cash flow will also be hit by the £6.7m impairment charge taken in respect of goodwill and acquired intangible assets because of increased discount rates. Basically, because of rising interest rates, the company had to write-down the value of some of its acquired assets.
The silver lining is the investment made in production capacity is expected to start having an effect in the coming years. The board expects the research and development investment to generate growth in revenue and PBT next year but at a lower level than previously assumed. Trading at a FactSet consensus forward PE ratio of 12.4, G&H looks affordable but there are too many operational problems that raise red flags. We move to hold. Last IC View: Buy, 891p, 7 Jun 2022. (Source: Investors Chronicle)
05 Dec 22. SpaceX forms ‘Starshield’ business unit to focus on national security. SpaceX is creating a new national security business unit called Starshield that will build on its launch and satellite communications offerings and introduce additional capabilities including Earth observation. The company, founded by bnaire Elon Musk, unveiled Starshield Dec. 2, emphasizing on its website that the business unit will leverage existing relationships with the Defense Department and the intelligence community.
“SpaceX’s ongoing work with the Department of Defense and other partners demonstrates our ability to provide in-space and on-ground capability at scale,” the company said.
SpaceX has expanded its military space footprint in recent years. In 2020, the Space Force selected the company’s Falcon 9 and Falcon Heavy rockets to fly 40% of its National Security Space Launch missions between fiscal 2022 and 2027. The Space Development Agency also awarded SpaceX $149 m in 2020 to build four missile tracking satellites.
The Ukrainian military has relied heavily on the company’s Starlink constellation, a network of more than 3,200 communication satellites that provides broadband internet. In October, Musk indicated SpaceX would no longer fund Ukraine’s use of Starlink. He later reversed course and is in discussion with the U.S. Department of Defense about future funding for the effort.
While details on Starshield — including when the capability will be on orbit and how much the company is investing — are light, SpaceX said the unit will initially focus on developing Earth observation sensors and satellites as well as a global communications constellation with higher levels of security than Starlink that is targeted for government customers.
“Starlink already offers unparalleled end-to-end user data encryption. Starshield uses additional high-assurance cryptographic capability to host classified payloads and process data securely, meeting the most demanding government requirements,” SpaceX said.
Starshield systems will also be interoperable, allowing them to be integrated with military satellites. (Source: Defense News)
05 Dec 22. SAIC Announces Third Quarter of Fiscal Year 2023 Results.
- Net bookings of $2.0bn resulting in a book-to-bill of 1.1x in the quarter
- Revenues of $1.91bn; 1% revenue growth
- Diluted earnings per share: $1.45; Adjusted diluted earnings per share(1): $1.90
- Company increases revenue and adjusted diluted EPS(1) guidance for fiscal year 2023
Science Applications International Corporation (NYSE: SAIC), a premier Fortune 500® technology integrator driving our nation’s digital transformation across the defense, space, civilian, and intelligence markets, today announced results for the third quarter ended October 28, 2022.
“Our results reflect continued strong performance from the team with notable momentum in new business capture and on-contract growth,” said SAIC CEO Nazzic Keene. “We are confident that the investments we are making – both internally and via our capital deployment program – are aligned with maximizing long-term shareholder value. This is our focus and will allow us to provide opportunities to grow for our incredibly talented employees while delivering excellence to our customers.”
Third Quarter of Fiscal Year 2023: Summary Operating Results
Third Quarter Summary Results
Revenues for the quarter increased $11m or 1% compared to the same period in the prior year primarily due to ramp up on new and existing contracts, partially offset by contract completions and lower accelerated amortization on certain off-market liability contracts.
Operating income as a percentage of revenues increased from the comparable prior year period primarily due to lower acquisition and integration costs and indirect costs, partially offset by lower accelerated amortization on certain off-market liability contracts.
Adjusted EBITDA(1) as a percentage of revenues for the quarter decreased to 8.9% from 9.0% for the same period in the prior year primarily due to lower revenue resulting from accelerated amortization on certain off-market liability contracts and net unfavorable changes in contract estimates, partially offset by lower indirect costs.
Diluted earnings per share for the quarter was $1.45 compared to $1.22 in the prior year quarter. Adjusted diluted earnings per share(1) for the quarter was $1.90 compared to $1.85 in the prior year quarter. The weighted-average diluted shares outstanding during the quarter decreased to 55.5m from 58.0m during the prior year quarter.
Cash Generation and Capital Deployment
Cash flows provided by operating activities for the third quarter were $128 m, a decrease of $6m compared to the prior year quarter, primarily due to the timing of customer collections and other changes in working capital, partially offset by the first installment of the deferred payroll taxes allowed under the CARES Act paid in the prior year.
Free cash flow(1) for the third quarter decreased by $2m from the prior year quarter to $122m, primarily due to the timing of customer collections and other changes in working capital, partially offset by the first installment of the deferred payroll taxes allowed under the CARES Act paid in the prior year.
During the quarter, SAIC deployed $86m of capital, consisting of $59m of plan share repurchases, $21m in cash dividends, and $6m of capital expenditures. In addition, SAIC made $90m of voluntary debt repayments during the quarter.
(1)Non-GAAP measure, see Schedule 5 for information about this measure.
Quarterly Dividend Declared
As previously announced, subsequent to the end of the quarter, the Company’s Board of Directors declared a cash dividend of $0.37 per share of the Company’s common stock payable on January 27, 2023 to stockholders of record on January 13, 2023. SAIC intends to continue paying dividends on a quarterly basis, although the declaration of any future dividends will be determined by the Board of Directors each quarter and will depend on earnings, financial condition, capital requirements and other factors.
Backlog and Contract Awards
Net bookings for the quarter were approximately $2.0bn, which reflects a book-to-bill ratio of 1.1 and a trailing twelve months book-to-bill ratio of 1.1. SAIC’s estimated backlog at the end of the quarter was approximately $24.4bn. Of the total backlog amount, approximately $4.0 bn was funded.
Notable New Business Awards:
U.S. Army Space and Missile Defense Command: SAIC was awarded a $208m Scenarios Training Operation Research and Modeling and Simulation (STORMS) contract by the U.S. Army Space and Missile Defense Command (USASMDC) to assist in the areas of space, space control, high altitude, air and missile defense, and associated cyberspace operations. Under this task order, SAIC will provide studies and analysis associated with campaign and theater-level modeling and simulation development, sustainment and execution as well as data mining.
Notable Recompete Awards:
U.S. Army Space and Missile Defense Command: SAIC was awarded a follow-on contract Decision Support Division (DSD) Integrated Air Missile and Network Defense and Space Support (DIAMNDSS) III valued at $181m. Under the task order, SAIC will continue to provide system utility analysis and combat development in support of the warfighter through analysis, execution experiments, exercises and war games, and modeling and simulation development and integration support.
Notable Space and Intelligence Community Awards:
U.S. Space and Intelligence Community: SAIC was awarded approximately $950m of contract awards by space and intelligence community organizations during the quarter. These awards represent a combination of new business and recompetes.
SAIC was awarded the following contracts subsequent to the end of the quarter which are not included in the current quarter net bookings and book-to-bill:
U.S. Army Enterprise Service Desk: SAIC was awarded a contract to continue providing software development and management services for the U.S. Army Enterprise Service Desk (AESD). The single-award contract has an estimated ceiling value of $757m. Under this contract, SAIC will continue existing AESD operations, optimize Army Enterprise Service Management Framework (AESMF) service delivery processes, and expand the functionality provided by the software as a service (SaaS) environment via optional capabilities. SAIC will also migrate legacy IT service management systems to a modern IT Service Management platform using ServiceNow®. Additionally, SAIC will provide service desk solutions to include service desk support for voice, messaging, video teleconferencing, computing, network infrastructure, customer support and information assurance support to the Army.
Other Notable News
SAIC Recognized for Commitment to Hiring Veterans: SAIC has received multiple acknowledgments for its commitment to military veterans, including being named on Forbes list of 2022 America’s Best Employers for Veterans. Additionally, SAIC ranked #7 on the Military.com list of Top 25 Veteran Employers and was recently recognized as a first-time recipient of the Gold HIRE Vets Medallion Award from the Department of Labor (DOL). “One out of four of our employees are veterans, who selflessly answered the call to serve our nation,” said Nazzic Keene, Chief Executive Officer at SAIC. “We are honored to receive recognition from Forbes and the Department of Labor for our commitment to military veterans and their families. I am thankful for our veterans that continue their service to our nation, bringing their exceptional talent and experiences to support our customers.”
SAIC Raises More Than $350,000 to Help Address Food Insecurity During Hunger Action Month: SAIC announced the Company raised more than $350,000, equivalent to more than 3.5 m meals, to combat food insecurity during Hunger Action Month in September. Through SAIC’s partnership with Feeding America®, SAIC’s contribution will provide meals to people in need, address food waste and promote awareness of the issue of hunger in America.
SAIC to Provide $1.5m to Alabama School of Cyber Technology and Engineering: SAIC announced a $1.5m commitment to the Alabama School of Cyber Technology and Engineering (ASCTE) towards the school’s mission of educating the cyber technology and engineering workforce of the future. ASCTE is one of Alabama’s leading magnet schools in the fields of science, technology, engineering and math (STEM) education. “We are eager to invest in future SAIC leaders from Alabama,” said Greg Fortier, vice president of the Army Fires, Aviation and Missile Defense Operation at SAIC. “For more than 50 years, SAIC has been a staunch advocate and supporter of schools like the Alabama School of Cyber Technology and Engineering. Our commitment ensures students have access to programs and tools that will position them to become skilled leaders in the field of science, technology, engineering and math.”
SAIC Named to Advanced Battle Management System Digital Infrastructure Consortium: SAIC has been named to the Advanced Battle Management System (ABMS) Digital Infrastructure Consortium developing digital capabilities that enable multi-domain operations for the Air Force, Space Force, and Joint Force. ABMS will accelerate the fielding of new battle management capabilities, utilizing the best industry has to offer to enable our joint and coalition forces to counter the evolving threat. As part of the Digital Infrastructure Consortium, SAIC will collaborate with other members to integrate modern capabilities leveraging digital engineering. These modern capabilities will become the foundation for the Department of the Air Force’s contribution to the JADC2 concept. (Source: BUSINESS WIRE)
05 Dec 22. Avon Protection selling armour assets to US defence supplier CoorsTek. Divestment to allow Avon to focus on delivering respiratory and head protection solutions. Avon Protection has reached an agreement to sell the assets of its Lexington, Kentucky facility to CoorsTek, Inc., a global manufacturer of advanced ceramics materials.
The Lexington plant is part of the UK group’s armour business and was acquired through Avon Protection’s takeover of 3M’s ballistic protection business in 2020.
The facility is focused on manufacturing ceramic plates, an essential component of body armour and aircraft armour.
In a statement 5 Dec, the UK supplier of protective products said the deal was concluded “for a modest cash consideration.”
Avon announced plans to wind down its body and flat armour business in December last year, following “an in-depth strategic review.”
CoorsTek, according to Avon, is “an established supplier” to the aerospace and defence industry and has invested over $50m (€47m) in the business over the past two years.
Avon expects to complete the transaction in the second half of its 2023 financial year, which started 1 Oct.
The UK supplier said it has fulfilled its final contractual obligations with its customers in line with the agreed wind-down plan.
“We are delighted to announce the sale of the Lexington facility today, which provides a future for the facility and the team based there,” said Bruce Thompson, Executive Chair of Avon.
The divestment, he went on to say, will allow Avon to focus on “core capabilities” to deliver respiratory and head protection solutions.
(Source: Google/https://www.european-rubber-journal.com/)
29 Nov 22. C-UAS company Liteye acquired by Highlander investment firm, signals growth. The High Point Aerotechnologies division of private investment company Highlander has acquired multi-mission defense company Liteye Systems. Liteye develops, integrates, and manufactures Counter Unmanned Aircraft Systems (C-UAS) designed to neutralize hostile drone threats. Highlander recently established High Point to pursue leading technologies in the C-UAS, UAS and related defense industries, says the company press release.
Founded in 2000 with a focus on selling thermal cameras and head-mounted displays to military and law enforcement agencies, Liteye in 2015 shifted its focus to C-UAS technologies. The company manufactures and integrates C-UAS systems that detect, identify, track, and disrupt hostile unmanned aircraft. The company operates as an integrator through exclusive strategic partnerships to offer configurable and hardware-agnostic systems that are customized to fit mission objectives and customer requisites. Additionally, this modular approach eliminates hardware dependencies and facilitates technology upgrades to ensure that Liteye’s systems are always equipped with the latest technologies. The company has long-term relationships with US and international government agencies.
For more information: www.liteye.com; www.highlander-partners.com
(Source: www.unmannedairspace.info)
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TCI International, Inc., is a wholly-owned subsidiary of SPX Corporation. TCI provides turn-key solutions for spectrum management and monitoring, direction finding, geolocation and communications intelligence to civilian, government, military and intelligence agencies as well as antennas for communications and high-power radio broadcasting. TCI is headquartered in Fremont, California, USA. For more information, visit www.tcibr.com.
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