Canada: UrtheCast on Friday announces its first quarter results for the year 2017. The company has reported an increase in revenue by 38% at $2.6 million due to higher Earth Observation (EO) imagery sales and higher engineering services revenues.
Moreover, the company has registered a net loss of $5.1 million in Q1 2017 as compared to $11.1 million in the same period last year, which is a remarkable 54% improvement over the prior year.
Adjusted EBITDA of $1.3 million also improved by $4.7 million, or 78%, over the prior year. This is primarily due to an overall decrease in UrtheCast’s operating costs resulting from its continued focus on cost-savings initiatives, including consolidating certain software development and operations activities and reducing cloud storage costs.
Beyond that, as previously announced, the company entered into a binding agreement in the first quarter of 2017 with a confidential government customer for the sale and shared operation of the first two satellites in the company’s planned OptiSAR Constellation for a purchase price of approximately US$180 million.
This agreement represents the first successful conversion of the three previously announced Memoranda of Understanding (MOUs) for the purchase of the OptiSAR Constellation satellites into binding contracts.
The agreement is subject to a number of closing conditions, including UrtheCast obtaining the necessary customer commitments to allow for the build, launch and financing of the first eight satellites in the OptiSAR Constellation, the customer obtaining funding on or before December 31, 2017, the parties reaching mutual agreement on the detailed procedures for the shared operation and tasking of the two satellites, and other customary covenants and regulatory approvals for agreements of this nature.
Provided these closing conditions are satisfied or waived, the purchase price is expected to be paid upon achievement of certain build-phase milestones, concurrent with the start of the build-phase for the first eight satellites.