MCLEAN, Va., Oct. 21, 2013 (GLOBE NEWSWIRE) -- Iridium Communications Inc. (Nasdaq:IRDM) today announces that it has been awarded a $400 million, multi-year, fixed-price contract with the Defense Information Systems Agency (DISA) to provide satellite airtime services to meet the communications needs of the U.S. Department of Defense (DoD) and their federal partners. This five-year contract renews the provision for delivering Enhanced Mobile Satellite Services (EMSS) airtime effective October 22. Iridium will provide unlimited global secure and unsecure voice, low and high-speed data, paging and Distributed Tactical Communications System (DTCS) services for an unlimited number of DoD and other federal government subscribers.
The renewed EMSS contract extends the U.S. Government's (USG) existing relationship with Iridium and ensures the continuation of service through new terms which offer program stability and the best value to the DoD to expand services supporting its critical missions. Both the multi-year and fixed-cost terms allow an even greater number of government subscribers to fully take advantage of the current capabilities as well as the enhanced services that will become available with Iridium NEXT -- the Company's next generation satellite constellation scheduled for first launch in early 2015 – without concern for incremental cost increases based on usage changes or growth in demand.
The Company's U.S. Government service revenue for the full-year 2012 was $61.8 million. The EMSS fixed-price rate in each of the five contract years is $64 million in fiscal year (FY) 2014, $72 million in FY 2015 and $88 million in FY 2016, 2017, and 2018."Iridium is proud to continue its longstanding relationship of providing global, mobile communications to the Department of Defense, our largest single customer," said Scott Scheimreif, Iridium's executive vice president, government programs. "We expect the DoD's needs for satellite communication services will continue to grow over the next 5 to 10 years. At a time when the U.S. Government is operating under greater fiscal constraints, Iridium is confident that both our service and contract terms will provide an optimal solution for our warfighters and other federal partners to communicate effectively now and in the future."
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts