CARLSBAD, Calif. - Viasat Inc. (NASDAQ: VSAT), a company specializing in satellite communications, has secured a contract with a full potential value of $153 million to provide engineering and network modernization services for the U.S. Army's Blue Force Tracker (BFT) program. The contract, awarded by the Defense Information Services Agency, includes a base year and four one-year option periods.
The BFT network has been a key component in military operations for over two decades, offering real-time situational awareness and GPS data to U.S. and allied forces. Viasat's role under the new contract will involve maintaining and configuring the BFT network's hardware and software, as well as supporting ongoing technology development to meet modernization goals.
David Schmolke, Vice President of Mission Connections and Cybersecurity at Viasat Government, remarked on the company's commitment to evolving BFT network operations and capabilities, highlighting the importance of real-time decision-making support for warfighters.
Viasat's history with the BFT program dates back to 2010 when it was awarded an Indefinite Delivery/Indefinite Quantity (IDIQ) contract to supply next-generation equipment for the Force XXI Battle Command Brigade and Below (FBCB2) Program. Since then, Viasat has received multiple contracts for the development and delivery of BFT systems, including Viasat L-Band mobile transceivers installed on over 100,000 tactical platforms across the U.S. military.
The information for this article is based on a press release statement.
In other recent news, Viasat Inc. has announced a series of significant developments. The satellite communications company reported that its revenues have more than tripled to $4.5 billion. This growth has occurred under the watch of Shawn Duffy, who is stepping down as CFO but will continue as Chief Accounting Officer. Gary Chase, with extensive experience from Delta Air Lines (NYSE:DAL) and Barclays (LON:BARC) Capital, will take over as the new CFO.
Viasat has also launched Enhanced LAISR, an on-demand L-band service for government use. This service is expected to provide reliable, flexible satellite communications connectivity, particularly for military operations. Furthermore, the company has unveiled upgrades to its L-band tactical satellite service (L-TAC), offering a more efficient experience for global government customers.
Additionally, Viasat has entered into strategic partnerships with Airbus Defence and Space, and Azercosmos, the national satellite operator of Azerbaijan. The Airbus collaboration will equip the Airbus C295 Maritime Patrol Aircraft with Viasat's GAT-5530 broadband terminal for the Spanish Ministry of Defence, while the Azercosmos partnership aims to extend satellite services in Azerbaijan and surrounding regions.
Analysts from BofA Securities, Deutsche Bank (ETR:DBKGn), and Needham have recently adjusted their price targets for Viasat, reflecting varied ratings. These are all recent developments in Viasat's operations and market position.
InvestingPro Insights
As Viasat Inc. (NASDAQ: VSAT) continues to secure significant contracts like the recent $153 million deal with the U.S. Army's Blue Force Tracker (BFT) program, it's essential to consider the company's financial health and market performance. With a market capitalization of $1.94 billion, Viasat operates with a noteworthy debt burden, as highlighted by one of the InvestingPro Tips. This could be a factor for investors to watch, especially in the context of large-scale government contracts and the company's capacity to manage its financial obligations.
The company's stock characteristics include high shareholder yield and trading at a low Price / Book multiple of 0.39, as per the last twelve months up to Q1 2025. This indicates that the company's shares might be undervalued relative to its book value, which could appeal to value investors. Additionally, Viasat's revenue has seen a significant increase, with a growth of 67.71% in the last twelve months leading up to Q1 2025. Despite not being profitable over the last twelve months, analysts predict that the company will turn a profit this year, which could be a positive sign for potential investors.
InvestingPro also provides a range of other tips for Viasat, including insights into cash burn, stock volatility, and liquidity. For those interested in a deeper analysis, there are additional tips available on the InvestingPro platform, which could offer further guidance on whether Viasat's current financial trajectory aligns with their investment strategy.
For more detailed information and additional InvestingPro Tips for Viasat, interested parties can visit InvestingPro.
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