NewSat wins $4.4m deal with US military

Satellite operator NewSat (ASX:NWT) has won a new $4.4 million contract to provide communications services to US military troops in Afghanistan.

Announcing the deal, NewSat said it would begin generating revenue from the deal in June this year.

NewSat will provide welfare communications in over 15 Afghanistani locations under the deal. The US military will have the option to extend the contract for a further year.

NewSat this year also won a $2.4 million deal to provide services to US troops in Southern Afghanistan. In total, the operator has announced $10 million worth of contract gains this year.

CEO Adrian Ballintine said the US military has been a long term customer of NewSat.

“Our relationships in this market will serve us well for out first geostationary communications satellite, Jabiru-1, which will focus on high value customers in the military, defense and government market,” he said.

But he said further announcements on the Jabiru-1 will probably be delayed until April due to the effect of the Japanese disasters on global markets.

NWT shares stayed flat on Friday at $0.009.