Syntec Optics (Nasdaq: OPTX) Secures $2.1M in New Orders for Space Optics

Rhea-AI Summary

Syntec Optics (Nasdaq: OPTX) has secured over $2.1 million in orders for ultra-high-precision space optics, targeting the Low Earth Orbit (LEO) satellite market. The company will leverage its dedicated production cell and in-house preform production capabilities to meet monthly satellite launch requirements.

The company's nano-scale-level accuracy in optics technology enhances space communications signal range at high orbital velocities and enables lower latency for satellite broadband compared to traditional radar-based systems. This positions Syntec Optics to participate in the projected $1 trillion global space economy by 2040.

Positive

• Secured new orders worth $2.1 million for space optics
• Demonstrates sustained demand in the LEO satellite market
• Vertical integration capabilities through in-house preform production
• Technology enables improved signal range and lower latency compared to traditional systems

Negative

• None.

Insights

Financial Analyst

The $2.1 million in new orders represents a significant win for Syntec Optics, particularly given its market cap of $34.1 million. This contract value equals approximately 6.2% of the company's market capitalization, indicating a material impact on potential revenue. The focus on LEO satellite market positions OPTX strategically in the rapidly growing space economy, projected to reach $1 trillion by 2040. The vertical integration strategy, including in-house preform production, suggests better margin control and supply chain reliability. However, investors should note that while this order demonstrates market validation, the company's small size may lead to revenue lumpiness and execution risks typical of microcap companies in the aerospace sector.

Tech Expert

The nano-scale precision optics technology for LEO satellites represents a important competitive advantage in the space communications sector. By improving signal range at high orbital velocities and enabling lower latency compared to traditional radar systems, Syntec's technology addresses key technical challenges in satellite broadband deployment. The dedicated production cell approach suggests scalable manufacturing capabilities, essential for meeting the demanding monthly launch schedules of satellite operators. The vertical integration strategy, particularly in-house preform production, provides critical quality control and customization capabilities that are vital in the ultra-precise space optics market. This technological positioning could be particularly valuable as LEO satellite constellations continue to expand.

Meets sustained demand for Low Earth Orbit Satellite products

ROCHESTER, NEW YORK, Dec. 09, 2024 (GLOBE NEWSWIRE) -- Syntec Optics (Nasdaq: OPTX), a leading provider of mission-critical products to advanced technology defense, biomedical, and communications equipment manufacturers, today announced that it has secured over $2.1 million in orders for its ultra-high-precision space optics. The company will utilize its dedicated production cell to continue delivering products.

“Continued orders demonstrate the sustained demand for our advanced optics solutions in the Low Earth Orbit (LEO) satellite market,” said Syntec Optics CFO Dean Rudy. “Our continued commitment to vertical integration, including in-house preform production, allows us to meet the demanding requirements of monthly satellite launches.”

Syntec’s demonstrated expertise in creating nano-scale-level accuracy in optics is key to improving the range of space communications signals at high orbital velocities. In addition, this technology enables lower latency for satellite broadband, a key advantage over traditional radar-based systems.

Satellite broadband could represent a significant portion of the $1 trillion global space economy by 2040.

About Syntec Optics

Syntec Optics Holdings, Inc. (Nasdaq: OPTX), headquartered in Rochester, NY, is one of the largest custom and diverse end-market optics and photonics manufacturers in the United States. Operating for over two decades, Syntec Optics runs a state-of-the-art facility with extensive core capabilities of various optics manufacturing processes, both horizontally and vertically integrated, to provide a competitive advantage for mission-critical OEMs. Syntec Optics recently launched new products, including Low Earth Orbit (LEO) satellite optics, lightweight night vision goggle optics, biomedical equipment optics, and precision microlens arrays. To learn more, visit www.syntecoptics.com.

Forward-Looking Statements

This press release contains certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended, including certain financial forecasts and projections. All statements other than statements of historical fact contained in this press release, including statements as to the transactions contemplated by the business combination and related agreements, future results of operations and financial position, revenue and other metrics, planned products and services, business strategy and plans, objectives of management for future operations of Syntec Optics, market size, and growth opportunities, competitive position and technological and market trends, are forward-looking statements. Some of these forward-looking statements can be identified by the use of forward-looking words, including “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “plan,” “targets,” “projects,” “could,” “would,” “continue,” “forecast” or the negatives of these terms or variations of them or similar expressions. All forward-looking statements are subject to risks, uncertainties, and other factors (some of which are beyond the control of Syntec Optics), which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. All forward-looking statements are based upon estimates, forecasts and assumptions that, while considered reasonable by Syntec Optics and its management, as the case may be, are inherently uncertain and many factors may cause the actual results to differ materially from current expectations which include, but are not limited to: 1) risk outlined in any prior SEC filings; 2) ability of Syntec Optics to successfully increase market penetration into its target markets; 3) the addressable markets that Syntec Optics intends to target do not grow as expected; 4) the loss of any key executives; 5) the loss of any relationships with key suppliers including suppliers abroad; 6) the loss of any relationships with key customers; 7) the inability to protect Syntec Optics’ patents and other intellectual property; 8) the failure to successfully execute manufacturing of announced products in a timely manner or at all, or to scale to mass production; 9) costs related to any further business combination; 10) changes in applicable laws or regulations; 11) the possibility that Syntec Optics may be adversely affected by other economic, business and/or competitive factors; 12) Syntec Optics’ estimates of its growth and projected financial results for the future and meeting or satisfying the underlying assumptions with respect thereto; 13) the impact of any pandemic, including any mutations or variants thereof and the Russian/Ukrainian or Israeli conflict, and any resulting effect on business and financial conditions; 14) inability to complete any investments or borrowings in connection with any organic or inorganic growth; 15) the potential for events or circumstances that result in Syntec Optics’ failure to timely achieve the anticipated benefits of Syntec Optics’ customer arrangements; and 16) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in prior SEC filings including registration statement on Form S-4 filed with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Syntec Optics does not give any assurance that Syntec Optics will achieve its expected results. Syntec Optics does not undertake any duty to update these forward-looking statements except as otherwise required by law.

For further information, please contact:

Sara Hart

Investor Relations

InvestorRelations@syntecoptics.com

SOURCE: Syntec Optics Holdings, Inc. (Nasdaq: OPTX)

FAQ

What is the value of new orders secured by Syntec Optics (OPTX) for space optics in December 2024?

Syntec Optics (OPTX) secured over $2.1 million in orders for ultra-high-precision space optics.

How does Syntec Optics (OPTX) support the LEO satellite market?

Syntec Optics supports the LEO satellite market through its dedicated production cell, in-house preform production, and nano-scale-level accuracy optics technology that improves space communications signal range.

What is the projected size of the global space economy that Syntec Optics (OPTX) is targeting?

Syntec Optics is targeting the global space economy, which is projected to reach $1 trillion by 2040.