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BlackSky secures $24 million Air Force contract for AI services

EditorIsmeta Mujdragic
Published 03/13/2024, 10:45 AM
Updated 03/13/2024, 10:45 AM
© Reuters.

HERNDON, Va. - BlackSky Technology Inc. (NYSE: BKSY), a provider of real-time geospatial intelligence, announced it has been awarded a $24 million ceiling contract by the Air Force Research Laboratory (AFRL). The contract is for the development and demonstration of moving target engagement services, leveraging BlackSky's software-first, artificial intelligence (AI) approach to enhance space-based moving target detection, tracking, and identification.

Under the terms of the contract, BlackSky will utilize its Spectra® tasking and analytics platform to showcase the capabilities of AI and machine learning in improving tasking, multi-intelligence collection, automatic tipping-and-cueing, direct downlink, and moving target engagement processing timelines within an exercise environment.

Brian E. O'Toole, CEO of BlackSky, stated that the Spectra platform is designed to excel in resource-limited settings by fusing information from multiple government ISR (intelligence, surveillance, reconnaissance) and commercial data sources. The initial award of $3.5 million has been obligated at the time of the award.

BlackSky's satellite constellation and Spectra AI software platform process data from both BlackSky's satellites and third-party sensors to generate insights and analytics for customers, which include U.S. and international government agencies, commercial businesses, and organizations globally.

The information for this article is based on a press release statement from BlackSky Technology Inc.

InvestingPro Insights

BlackSky Technology Inc. (NYSE: BKSY), while securing a significant contract with the Air Force Research Laboratory, presents a mixed financial picture according to the latest data from InvestingPro. With a market capitalization of $199.97 million, the company's valuation reflects some of the challenges it faces in the market. The P/E Ratio stands at -3.53, indicating that investors are not expecting earnings growth in the near term, which aligns with the InvestingPro Tip that analysts do not anticipate the company to be profitable this year.

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The company's gross profit margin is notably high at 64.25%, showcasing its ability to maintain a solid profit on its services. However, its operating income margin is negative at -59.27%, and it is quickly burning through cash, which could be a concern for long-term sustainability. These financial metrics are crucial for investors as they balance the potential of BlackSky's cutting-edge technology solutions with the company's current financial health.

Another InvestingPro Tip highlights that BlackSky operates with a moderate level of debt and its liquid assets exceed short-term obligations, suggesting that the company has some financial flexibility in the near term. However, with a valuation that implies a poor free cash flow yield and a stock price that has fallen significantly over the last five years, investors may need to exercise caution.

For those interested in a deeper analysis, additional InvestingPro Tips are available, providing more insights into BlackSky's financial health and market performance. As of now, there are six more tips listed on InvestingPro. To access these insights and more, visit https://www.investing.com/pro/BKSY and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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