Alliant Techsystems Inc.
) has entered into an agreement with Israel Aerospace Industries
("IAI") to supply solar array to power the latter's Affordable
Modular Optimized Satellite ("AMOS-6"). The company's Space
Components Division will be responsible for this contract.
Alliant will supply the solar array from Goleta, California.
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Per the contract, the company will supply the solar array within
18 months and there is also contract-extension option. Alliant
might work on AMOS-7 solar array if communications satellite
operator Spacecom gives follow-on contract to IAI.
IAI is engaged in developing and producing military and
commercial aerospace and defense systems for the Israel Ministry
of Defense and many other international customers for half a
AMOS satellite fleet consists of AMOS-2, AMOS-3 and AMOS-5
satellites. AMOS-2, AMOS-3 and AMOS-5 deliver a wide range of
communications and broadcasting services to Europe, the Middle
East and Africa. Currently, Spacecom is introducing AMOS-4 and
AMOS-6 satellites for Asia and Russia.
This solar array comes under Alliant's Planar Unfolding Modular
Array ("PUMA"). It has low non-recurring engineering cost, low
operation risk and is simple for satellite implementation. It is
suitable for both small and large satellites.
In addition, this array has 100% flight success track-record with
installation of roughly 50 solar array wings on-orbit. High
demand in this solar array is primarily due to its strong success
rate. Earlier, Alliant supplied this solar array to
The Boeing Company
Orbital Sciences Corporation
) for their GPS-IIF satellites and STAR2 geosynchronous
Alliant tied-up with Israeli defense manufacturers for more than
a decade. In 1998, the company along with Israeli counterpart,
Israel Military Industries Limited, created non-lethal,
muzzle-launched ordnance for the U.S. Army Armament Research,
Development, and Engineering Center. In 2006, Alliant and Boeing
signed an agreement to support the new Israeli Short-Range
Ballistic Missile Defense system.
Alliant's two biggest clients are the National Aeronautics and
Space Administration and the U.S. Department of Defense. So, any
cutbacks in the U.S. defense budget could limit the company's
future growth prospects. In addition, higher level of competition
from a number of players in each of its business segments is also
our major concern.
In this scenario, we consider this international contract as a
finance-booster for Alliant and will enable the company to
further strengthen alliance with its international clients.
Arlington, Virginia-based Alliant Techsystems Inc. provides
aerospace and defense products to the U.S. government agencies.
The company currently has a short-term Zacks Rank #3 (Hold).