MDA awarded $706 million contract to build three radar satellites
RICHMOND, BC, Jan. 9, 2013 /CNW/ - MacDonald, Dettwiler and Associates Ltd. (TSX: MDA), a provider of essential information solutions, today announced the signing of a $706 million contract with the Canadian Space Agency to build, launch and provide initial operations for the RADARSAT Constellation Mission (RCM). The contract is expected to extend over a period of seven years and brings MDA's current backlog to approximately $2.9 billion.
"This is exciting news," said Daniel Friedmann, MDA's president and CEO. "RCM builds on the world-leading geospatial and radar surveillance capabilities that MDA has developed through the RADARSAT-1 and RADARSAT-2 missions. We are now greatly expanding these capabilities with benefits for Canada and for MDA."
RCM is a constellation of three satellites providing around-the-clock coverage. Information obtained from RCM can include repeat imaging of the same area at different times of day, dramatically improving the frequency of monitoring coastal zones, northern territories, Arctic waterways and other areas of strategic and defence interest. RCM will also incorporate automated identification system technology, which when combined with the powerful radar images, supports the immediate detection and identification of ships worldwide.
Already a leading supplier of radar-based surveillance and security, MDA's service offering is expected to expand as it leverages RCM's repeat imaging capabilities. The information provided by the RCM satellites will enable MDA to meet a larger range of recurring monitoring needs in growing market segments such as oil and gas, mining, defence and security, well into the next decade. "Demands in these operational segments are driven by the ability to provide frequent, reliable information. RCM's all-weather, day-and-night satellites will help us meet this demand," said Friedmann.
"This is a major step forward for MDA as a leader in the growing global surveillance and intelligence market" said Friedmann. "With this contract, MDA has a strong foundation for continued development of its space missions, satellite ground systems, radar payload and geospatial services businesses."
MDA is a unique global communications and information company providing operational solutions to commercial and government organizations worldwide.
MDA's business is focused on markets and customers with strong repeat business potential. In addition, the Company conducts a significant amount of advanced technology development.
MDA's well-established global customer base is served by more than 5,000 employees operating from 18 offices located in the United States, Canada, and internationally.
The Company's common shares trade under the symbol TSX:MDA.
This news release contains forward-looking statements and information, which reflect the current view of MacDonald, Dettwiler and Associates Ltd. ("MDA" or the "Company") with respect to future events and financial performance. The forward-looking statements in this regard include statements related to the government contract for the RADARSAT Constellation Mission (RCM) and its impact on the Company's operations. Any such forward-looking statements are based on MDA's current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. The factors and assumptions underlying the forward-looking statements in this news release include contracts with any government agency not being terminated or not receiving adequate funding. Any such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from current expectations. The risks that could cause actual results to differ from current expectations include, but are not necessarily limited to: changes in government priorities, funding levels, contracts and regulations; failure of third parties and subcontractors; risks associated with the design and operation of satellites and provision of satellite services, including satellite construction or launch delays, launch failures, in-orbit failures or impaired satellite performance; failure to anticipate changes in technology, technical standards and product offerings or comply with the requisite standards and failure of systems to meet performance requirements; and other risks, including litigation. The foregoing list of important factors is not exhaustive. MDA cautions readers that should certain risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected.
For additional information with respect to certain of these risks or factors, plus additional risks or factors, reference should be made to the Company's continuous disclosure materials filed from time to time with Canadian securities regulatory authorities, which are available online under the Company's profile at www.sedar.com or on the Company's website at www.mdacorporation.com.
The Toronto Stock Exchange has neither approved nor disapproved the form or content of this release.
SOURCE MacDonald, Dettwiler and Associates Ltd.