Filtronic PLC, a designer and manufacturer of products for aerospace, defense, space, and telecoms infrastructure markets, has announced a strategic partnership and commercial agreement with SpaceX. The agreement includes the ongoing supply of E-band Solid State Power Amplifiers (SSPA) and the development and supply of similar products at other frequency bands within SpaceX's Starlink platform. The initial irrevocable purchase order of $19.7m (£15.8m) for E-band SSPA modules is scheduled for delivery in FY2025, with further order flow expected to continue to support the ongoing deployment of SpaceX's Starlink constellation, providing high-speed, low-latency internet globally.
As part of the partnership, Filtronic is issuing a total of 21,712,109 warrants to SpaceX across two tranches, enabling SpaceX to subscribe for up to a maximum of 10% of the Company's existing share capital. The warrants are expected to vest, on a variable basis, with full vesting once approximately $60m (£48m) of orders have been placed by SpaceX. The strike price for the warrants is 33 pence, and they will expire five years from the date the Strategic Partnership contract was executed.
Richard Gibbs, Chief Executive Officer of Filtronic, expressed excitement about the partnership, stating, "This milestone development in our SpaceX partnership underlines our core value proposition of high-quality engineering and operational excellence." He also mentioned the opportunity for Filtronic to scale manufacturing, build capability, and execute their technology roadmap. Mike Nicolls, SpaceX's Vice President of Starlink Engineering, praised Filtronic as an outstanding supplier for Starlink, highlighting their ability to match rate ramp and increasing demand for high-quality parts.
The partnership signifies a significant step for Filtronic, providing the opportunity to expand its capabilities and work alongside SpaceX to develop new products for use in the Starlink system. This collaboration is expected to contribute to the ongoing growth and connectivity of millions of people around the world with high-speed, low-latency broadband internet.
For further information, investors can contact Filtronic plc at 01740 618800 or [email protected]. The company's leadership, including Richard Gibbs (Chief Executive Officer) and Michael Tyerman (Chief Financial Officer), will be available to address any inquiries.