While responding recently to a comment on the Advanced Financial Network I outlined my hope that we wouldn’t have to wait too long for news on revenue from EnSilica’s contract with AST Space Mobile. This was following confirmation in May that AST’s first Block 2 BlueBird satellites are shipping this quarter, with the first launch expected in July. With AST’s intended manufacturing ramp-up during 2025 and 2026, I hoped that that would result in a meaningful boost to EnSilica’s revenues and profitability.
Well we didn’t have to wait long for news, as today’s contract update from EnSilica has good news and more good news. Not only have EnSilica’s first royalty payments from AST been triggered, but an extended royalty agreement has been signed. According to EnSilica, they ‘will receive additional monthly royalty payments for each satellite in operational service using the ASIC. The total value of the expanded agreement is estimated to be worth c.US$28m over the next 10 years (previously estimated to be US$15m royalties over 5 years).’
Well that seems like a ‘Double Bubble Bonus’ to me!
https://www.londonstockexchange.com/news-article/ENSI/contract-update/17081930
A possibility just came to mind… given EnSilica’s expertise in satellite communication integrated circuits, I wonder if they may play some part in the European sovereign IRIS2 constellation, which is scheduled to be launched in a few years time.
With a positive track record in this space and relationships with key organisations, such as the European Space Agency, I would hope they are in a strong position for being selected to design key technology for the new satellites. Fingers crossed!