London-based speciality satellite company Avanti Communications reported its Q3 trading update on May 16th (to March 31st), saying that revenues were $19.5 million (€17.2m) for the period, up 14.7 per cent on the same period last year (on a constant currency basis).
Avanti re-affirmed its overall guidance for this financial year (ending June 30th) saying that sales were “underpinned by strong contract win momentum”. Last year Avanti recorded sales of $85.2 million, but its 9-month revenues now stand at $50.5 million, and simple arithmetic suggests its $35+ million ‘gap’ will all be achieved in the current quarter.
The operator said that one contract which it had hoped to include in its Q3 numbers had been rolled over to Q4. Its contracted backlog has slipped 2 per cent to $402 million.
Contrary to Eutelsat’s profits warning (issued on May 12th) Avanti stressed that market demand for its high-throughput Ka-band capacity “remain strong”, and that it continues to secure new “high-quality” customers with high contract values.
Avanti’s cash at hand and undrawn potential credit cash stands at $193 million.
Avanti’s share price has suffered these past few days as a result of pressures on the whole satellite sector. One month ago its share price stood at about 97p (on the London AIM) and May 16th it was down at one point to 86p, but rallied to 89p as the day progressed. However, and to put the context the overall fall in value one year ago their price was some 217p.