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NewSat delivers strong start to calendar year

  • 15 February, 2007 14:40

<p>NewSat Limited (ASX:NWT) announced today that the company has delivered a strong start to the calendar year due to the Board’s strategies gaining traction in the local and international satellite communications markets.</p>
<p>This is evidenced by a range of indicators which include record sales for the month of January 07, traditionally a quiet period for trading.</p>
<p>Recent negotiations highlight the attention to cost control by the Board. Two transactions with SES NewSkies, the synergistic business partner to NewSat’s teleport operations, support this.</p>
<p>In the two transactions, the company has removed a fixed, pre-commitment of $7 million. Both relate to restructure of capacity commitments in Australia and the Middle East over the next five years, delivering a $3.5 million saving in each of the two territories.</p>
<p>The Board is quick to point out that this reduction in pre-commitment for bandwidth does not affect the strength of the company as it continues to extend its market share domestically and globally.</p>
<p>In line with that pathway to continued growth, NewSat has restructured its operations in the dynamic Middle East market, moving its base from Dubai to Kuwait, with a new team and direction, including a more focused approach to Central and South East Asia.</p>
<p>The decision to diversify its earth station activities, and offer clients flexible solutions through a variety of satellites and technologies such as iDirect, ViaSat and Vipersat, is proving successful. It has the added strategic benefit that NewSat now has less reliance on any individual carrier.</p>
<p>The recent NSS 8 satellite launch failure has had no adverse impact on NewSat’s operations. In fact, no contracts were contemplated or executed with SES New Skies for its ill-fated NSS 8 service.</p>
<p>Recognising the on-going consolidation in the satellite industry, the company identified that one of New Skies’ recent satellite acquisitions, NSS 11, already in orbit, provided a better footprint fit for NewSat than NSS 8.</p>
<p>The NewSat strategy has been to take advantage of access to favourable terms for NSS11 in order to add and migrate contracts to this satellite. In fact, NewSat has this month launched another earth station at its Perth teleport facility to handle this extra service.</p>
<p>NewSat anticipates building on this strong start to the year by further expanding its asset base of earth stations to service larger clients in preparation for long-term worldwide space contracts. The company expects to be in a position to elaborate on the nature of these additional assets and contracts in March.</p>
<p>NewSat Limited (ASX: NWT) is a publicly listed company whose reliability,
high quality and efficient services have helped it become one of the world’s fastest growing satellite communications service providers. In addition to hosting and distributing internet services, NewSat is able to provide network solutions for a
wide range of private, commercial and government users.</p>
<p>NewSat provides a full range of managed communication services, TT&amp;C and
carrier monitoring from its teleports in Perth and Adelaide to Australia/Oceania, Asia, the Middle East and Africa</p>
<p>In addition, NewSat operates multiple Broadband IP Services based on technologies developed by ViaSat, Gilat, Hughes, Comtech and iDirect.</p>

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