UrtheCast Signs US$30-million Contract with TerraTech
The contract is for the company’s upcoming UrtheDaily data service, set to launch in 2020. The US$30 million will bring UrtheCast’s total revenue backlog to US$255 million.
The company, engaged in the geospatial and geo-analytics markets, said the contract with Moscow-based TerraTech is worth US$10 million annually over the first three years of service operation.
TerraTech, a subsidiary of the Russian Space Agency Roscosmos and a commercial provider of Earth observation and geoinformation services, will have the option for an additional two years of UrtheDaily data services worth US$20 million above the initial contract.
Designed to capture high quality optical imagery of the Earth’s entire landmass, UrtheDaily, an eight satellite constellation, is targeting in-market service for 2020.
Built in partnership with Surrey Satellite Technology and with a design life of 10 years, UrtheDaily is designed to store the data it captures on a cloud-based platform.
The Vancouver-based company announced a similar deal in September when it signed a binding contract for US$25 million with a commercial Earth Observation operator, providing value-added services on the Indian subcontinent.
“This long-term revenue visibility and the continued support of a growing portfolio of sophisticated global customers give us confidence that the successful launch of UrtheDaily will establish UrtheCast as the world’s pre-eminent provider of data-rich geoanalytics solutions,” David Osborne, CEO of UrtheCast, said in the September release.
UrtheCast currently operates and owns two Earth Observation satellites, Deimos-1 and Deimos-2 and operates additional 20 satellites through its exclusive partnerships. The company processes and distributes imagery data in multiple markets.
Following the announcement on Thursday, UrtheCast closed the trading session at C$0.28 and was down 16.18 percent over the one day trading period. While shares of the the company lost 75 percent year-to-date, it has increased 35 percent in the last month.
The stock has a “buy” ranking on TradingView with 13 verticals in favor, nine in neutral and four against. On TipRanks, the stock has a “moderate buy” ranking with an analyst target price of C$0.65; it has a high estimate of C$1 and a low of C$0.30.
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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.