Astronics Awarded Contracts Valued up to $75 Million for Dual-Modem Modem Manager Units

Rhea-AI Summary

Astronics (Nasdaq: ATRO) announced contracts valued up to $75 million over the next 3 to 5 years for their Dual-Modem Modem Manager (ADMM). The ADMM enhances inflight entertainment and connectivity by managing communication between satellite and cabin wireless access points, ensuring reliable IP communications for passengers, crew, and operations personnel.

The ADMM supports multi-orbit, multi-band capabilities and is adaptable to various satellite networks, offering flexibility for Managed Service Providers, airlines, and OEMs. Its modem-agnostic design is customizable to operator needs, supporting both Ku and Ka satellites. Astronics has over 5,000 aircraft equipped with their inflight entertainment and connectivity hardware globally.

Positive

• Contracts valued up to $75 million over the next 3 to 5 years.
• ADMM enhances inflight entertainment and connectivity.
• Supports multi-orbit, multi-band capabilities providing flexibility.
• Can manage communication between satellite and cabin wireless access points.
• Customizable modem-agnostic design supports various satellite networks.
• Astronics has over 5,000 aircraft flying with their hardware.

Negative

• Revenue realization is spread over the next 3 to 5 years, not immediate.
• Market competition could impact future sales and contract renewals.
• Potential dependency on specific network providers for SATCOM modems.

Insights

Financial Analyst

Astronics Corporation's recent contracts valued up to $75 million for their Dual-Modem Modem Manager (ADMM) units could significantly impact their financial standing. This is a strong indicator of demand in inflight entertainment and connectivity solutions, suggesting that airlines are increasingly focusing on enhancing passenger experiences. The projected revenue stream over the next 3 to 5 years provides a stable outlook, especially considering the aviation industry's recovery post-pandemic. This consistency in purchase orders can cushion against market volatility and ensure steady cash flow. From a financial perspective, recurring revenues from these contracts might improve Astronics' earnings predictability and bolster investor confidence.

It’s essential to consider the broader market context. The aviation sector is notorious for its cyclical nature, heavily influenced by economic conditions. Thus, while the contracts are promising in the short to medium term, long-term stability will depend on broader economic recovery and airline budgets. Investors should be cautiously optimistic, monitoring how Astronics manages its capital expenditure and operational costs alongside this influx of orders.

Tech Expert

The introduction of the Dual-Modem Modem Manager (ADMM) showcases Astronics' strides in enhancing inflight connectivity technology. By enabling multi-orbit, multi-band capabilities within a single Line Replaceable Unit (LRU), the ADMM offers unparalleled flexibility and reliability. This technology paves the way for integrating both current and future network technologies, which is important for maintaining a competitive edge as network demands evolve.

From a technical standpoint, the modem agnostic design of the ADMM is particularly noteworthy. This feature means that airlines and service providers are not locked into a single modem or network provider, enhancing operational adaptability and reducing long-term costs. Additionally, compatibility with both Ku and Ka satellites allows for broader network access and potentially better coverage and speed for passengers.

The potential for retrofitting existing aircraft with ADMM units also opens up significant business opportunities. Airlines can upgrade their current fleets without needing entirely new systems, thereby saving costs while improving service quality. This flexibility could drive widespread adoption, particularly among budget-conscious carriers.

Astronics Dual-Modem Modem Manager (ModMan) Ushers in the Next Chapter of Inflight Entertainment and Connectivity by Enabling Airline Flexibility and Control

EAST AURORA, N.Y.--(BUSINESS WIRE)-- Astronics Corporation (Nasdaq: ATRO), a leading supplier of advanced technologies and products to the global aerospace, defense, and other mission-critical industries, announced today that it has been awarded contracts from multiple customers for the Astronics Dual-Modem ModMan (ADMM) valued up to approximately $75 million over the next 3 to 5 years. The Company expects to receive a series of purchase orders throughout the duration of the contracts.

Astronics ADMM shows off configurability options provided by dual-modem functionality (Photo: Business Wire)

“These contracts and the marketplace's positive reception of the ADMM reflect our commitment to investing in reliable and affordable inflight entertainment and connectivity hardware,” said Mike Kuehn, President of Astronics CSC. “Serving as the brains behind our connectivity platform, the ADMM seamlessly manages communication between satellite and cabin wireless access points, ensuring passengers to remain connected reliably. Designed for the future, the modem manager is optimized to leverage both current and emerging network technologies, delivering fast, secure, and reliable IP communications for airline passengers, crew, and operations personnel.”

The ADMM is unique in that it provides the means to support multiple-orbit, multi-band capability in a single LRU providing a faster time to market for Managed Service Providers (MSP), airlines, and Original Equipment Manufacturers (OEMs) with the ultimate in flexibility.

ADMM can be installed in retrofit and OEM applications and includes up to two Satellite Communications (SATCOM) modems selected from multiple network providers to create unprecedented levels of reliability and configurability in an aerospace ModMan. The novel platform-basis of ADMM is flexible and features a modem agnostic design customizable to support satellite networking configurations based on operator preference. ADMM supports multi-orbit, multi-beam, and both Ku and Ka satellites to take advantage of nearly any satellite network.

ADMM continues Astronics long line of proven leadership in the industry, building on past generations of ModMan units. Astronics is the world's most widely deployed provider of inflight entertainment and connectivity hardware with over 5,000 aircraft flying today.

For more details visit Astronics.com.

About Astronics Corporation

Astronics Corporation (Nasdaq: ATRO) serves the world’s aerospace, defense, and other mission-critical industries with proven innovative technology solutions. Astronics works side-by-side with customers, integrating its array of power, connectivity, lighting, structures, interiors, and test technologies to solve complex challenges. For over 50 years, Astronics has delivered creative, customer-focused solutions with exceptional responsiveness. Today, global airframe manufacturers, airlines, military branches, completion centers, and Fortune 500 companies rely on the collaborative spirit and innovation of Astronics. The Company’s strategy is to increase its value by developing technologies and capabilities that provide innovative solutions to its targeted markets.

For more information on Astronics and its solutions, visit Astronics.com.

Safe Harbor Statement

This news release contains forward-looking statements as defined by the Securities Exchange Act of 1934. One can identify these forward-looking statements by the use of the words “expect,” “anticipate,” “plan,” “may,” “will,” “estimate,” “feeling” or other similar expressions and include all statements with regard to achieving any revenue or profitability expectations, the timing of receipt of orders or future orders, the continued momentum in the business and favorable tailwinds, the expectations of customer enthusiasm and level of demand by customers and markets. Because such statements apply to future events, they are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by the statements. Important factors that could cause actual results to differ materially from what may be stated here include the impact of global pandemics and related governmental and other actions taken in response, the trend in growth with passenger power and connectivity on airplanes, the state of the aerospace and defense industries, the market acceptance of newly developed products, internal production capabilities, the timing of orders received, the status of customer certification processes and delivery schedules, the demand for and market acceptance of new or existing aircraft which contain the Company’s products, the impact of regulatory activity and public scrutiny on production rates of a major U.S. aircraft manufacturer, the need for new and advanced test and simulation equipment, customer preferences and relationships, the effectiveness of the Company’s supply chain, and other factors which are described in filings by Astronics with the Securities and Exchange Commission. The Company assumes no obligation to update forward-looking information in this news release whether to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240524004871/en/

Company:

David C. Burney

Executive Vice President and CFO

invest@astronics.com

+1.716.805.1599

Investor:

Kei Advisors LLC

Deborah K. Pawlowski

Investor Relations

dpawlowski@keiadvisors.com

+1.716.843.3908

Astronics CSC:

Brian Perille

Marketing Coordinator

Brian.Perille@astronics.com

+1.847.821.3000

Source: Astronics Corporation

FAQ

What is the value of the contracts awarded to Astronics for the ADMM?

The contracts are valued up to $75 million over the next 3 to 5 years.

What does the Dual-Modem Modem Manager (ADMM) do?

The ADMM manages communication between satellite and cabin wireless access points, enhancing inflight entertainment and connectivity.

What capabilities does the ADMM support?

The ADMM supports multi-orbit, multi-band capabilities and is adaptable to various satellite networks, supporting both Ku and Ka satellites.

How many aircraft use Astronics' inflight entertainment and connectivity hardware?

Astronics' hardware is installed in over 5,000 aircraft globally.

Over what period will Astronics receive the purchase orders?

Astronics expects to receive purchase orders throughout the duration of the contracts, which is over the next 3 to 5 years.