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Financial Reports/News
Maxar Reports First Quarter Results; Dan Jablonsky Quoted
by Sarah Sybert
Published on May 12, 2020
Maxar Reports First Quarter Results; Dan Jablonsky Quoted
Maxar Reports First Quarter Results; Dan Jablonsky Quoted

Maxar Technologies has announced financial results for the quarter ended March 31, 2020 and a multi-hundred million dollar contract award to build multiple 1300-Class communications satellites for an undisclosed customer, the company reported on Monday.

“Our results this quarter reflect progress on our multi-year strategy to strengthen our company and position it for revenue, profit and cash flow growth. Importantly, we closed the MDA divestiture, which helped improve our balance sheet. We generated solid revenue growth in Earth Intelligence, and quarter-over-quarter consolidated backlog growth, demonstrating solid demand from customers and continued success of our diversification strategy,” said Dan Jablonsky, CEO. 

Maxar has reported consolidated revenues from continuing operations of $381 million and net loss of $48 million. The company’s diluted loss per share from continuing operations of $1.30 and Adjusted EBITDA from continuing operations of $77 million and Adjusted EBITDA margin of 20.2 percent.

The report is compared to Adjusted EBITDA of $99 million and Adjusted EBITDA margin percentage of 22.9 percent for the first quarter of 2019. The decrease was driven largely by lower Adjusted EBITDA from the Space Infrastructure segment, partially offset by higher Adjusted EBITDA from the Earth Intelligence segment.

The company reported a net loss and adjusted EBITDA included charges of $18 million related to COVID-19 and $14 million related to a recent design anomaly detected in a final satellite test procedure.

“The bookings momentum has continued into the second quarter with today’s signing of a contract to build multiple 1300-Class communications satellites. This brings our bookings total in Space Infrastructure to over $700 million year-to-date and puts us on a path for another year of backlog growth for this segment,” added Jablonsky.

The company noted that, in April 2020, Maxar completed sale of the MDA Business to Neptune Acquisition for $729 million, subject to customary purchase price adjustments, including for working capital, cash and debt. 

The purchase represents a strategic shift in Maxar’s business and qualifies as a discontinued operation. As a result, the operating results and cash flows related to the MDA Business have been reflected as discontinued operations in the Unaudited Condensed Consolidated Statements of Operations.

Total revenues from continuing operations decreased to $381 million from $431 million, or by $50 million, compared to the same period of 2019. The decrease was primarily driven by a $78 million decrease in the Space Infrastructure segment which was partially offset by a $17 million increase in the Earth Intelligence segment.

The increase in net loss is primarily driven by a decrease in revenue of $50 million for the three months ended March 31, 2020 compared to the same period in 2019. The increase is also driven by a $14 million recognition of impairment on orbital receivables, primarily due to an increase in credit risk associated with the company’s largest orbital customer.

Maxar had COVID-19 related EAC growth of $18 million within the Space Infrastructure segment which negatively impacted the company’s earnings. The changes in the EACs are due to increases in estimated program costs associated with the COVID-19 operating posture and the estimated impact of certain items such as supplier delays and increased labor hours.

The company had total order backlog of $1.7 billion compared to $1.6 billion as of Dec. 2019. Backlog increased primarily due to an increase in Maxar’s Space Infrastructure segment backlog as a result of new awards during the year, partially offset by declines in the Earth Intelligence segment. 

The decrease in backlog within the Earth Intelligence segment is primarily driven by the timing of the exercise of the EnhancedView Contract option year. The decrease was partially offset by increases in geospatial services. 

Jablonsky continued, “As we respond to the global Coronavirus pandemic, we are focused on protecting the health and safety of our team members, families, customers and communities while continuing to deliver the products and services needed by our partners to complete their critical missions.”

About Maxar 

Maxar is a leading provider of solutions in Earth Intelligence and Space Infrastructure. We help government and commercial customers to monitor, understand and navigate the changing planet; deliver global broadband communications infrastructure; and explore and advance the use of space. Our approach combines decades of deep mission understanding and a proven commercial and defense foundation to deliver our services with speed, scale and cost effectiveness. 

Maxar’s 4,000 team members in more than 20 global locations work to help our customers harness the potential of space. Maxar’s stock trades on the New York Stock Exchange and Toronto Stock Exchange under the symbol “MAXR”. 

Executive Moves/News
Michael Loh Nominated to Lead Air National Guard
by Matthew Nelson
Published on May 12, 2020
Michael Loh Nominated to Lead Air National Guard
Michael Loh
Michael Loh

President Trump has nominated Maj. Gen. Michael Loh, adjutant general of the Colorado National Guard and executive director of the state’s Department of Military and Veterans Affairs, to be the Air National Guard’s next director.

Loh is also in line to receive a promotion to the rank of lieutenant general, the Department of Defense (DoD) said Monday. He supervises DMVA’s personnel, readiness, real property, equipment and fiscal resources as well as training programs meant to address federal and state missions.

The Air Force Academy graduate spent seven years as an F-16 aircraft instructor and strike pilot with U.S. Air Forces Europe at Luke AF Base in Arizona. He logged more than 3,200 hours aboard the F-16A/B/C/D jets.

Prior to his current capacity, Loh served as National Guard assistant to the chief of Air Combat Command at Langley AFB in Virginia. He would succeed Lt. Gen. Scott Rice if the Senate approves the nomination.

News/Press Releases
Navy Breaks Ground on Point Mugu Directed Energy Test Facility
by Matthew Nelson
Published on May 12, 2020
Navy Breaks Ground on Point Mugu Directed Energy Test Facility
Navy Breaks Ground on Point Mugu Directed Energy Test Facility

The U.S. Navy held a groundbreaking ceremony earlier this month for a testing facility at Point Mogu Sea Range in California where the service branch intends to evaluate laser weapon prototypes.

The 18,500-square-foot Directed Energy Systems Integration Laboratory will be built to simulate the behavior of high-energy weapons aboard ships in different maritime conditions, the Naval Sea Systems Command said Wednesday.

DESIL will feature a high-velocity training area, offices, a conference room and space for the Department of Defense to collaborate with industry or academic partners.

The Naval Facilities Engineering Command chose San Diego-based Harper Construction to provide design-build services for the estimated $23M project.

In-service engineering agents of the Navy have been tasked with operating DESIL, which will also be used for integration and evaluation of DE and HEL weapon platforms.

The branch expects customers and users to use the facility to test the effects of air density, temperature changes and other factors on HEL beam performance. They can also examine how naval ship systems can support  energy-intense weapons as well as conduct target shooting demonstrations on the site.

The lab is scheduled to open within a year.

DHS/Government Technology/News
DHS Provides Employees, Contractors Network Access Via Alternative Credentials
by Jane Edwards
Published on May 12, 2020
DHS Provides Employees, Contractors Network Access Via Alternative Credentials
DHS Provides Employees, Contractors Network Access Via Alternative Credentials

The Department of Homeland Security (DHS) has started releasing derived alternative credentials to allow staff and contractors with expiring personal identity verification cards to gain remote access to DHS networks during the coronavirus pandemic, Federal News Network reported Monday.

The department’s office of the chief security officer worked with DHS’ chief information officer and subcomponents to develop the new credential. DHS said it has issued 76 alternative credentials since Friday, May 8, and most of the credentials have been released to personnel at the department’s headquarters.

The department started testing the new credentials on April 6 and made them available on April 21. The approval process for the alternative credential involves a DHS security professional verifying an employee’s identity through video conference.

Once the contractor or personnel is cleared for the new credential, the department will send by mail the access card and other tools to allow the recipients to telework. The alternative credentials come with logical access tokens and do not permit physical access to a DHS facility.

Government Technology/News
CISA Warns of Security Risks Related to Online Voting
by Jane Edwards
Published on May 12, 2020
CISA Warns of Security Risks Related to Online Voting
CISA Warns of Security Risks Related to Online Voting

The Department of Homeland Security’s (DHS) Cybersecurity and Infrastructure Security Agency (CISA) has issued a memo to election officials and digital voting providers warning them of “significant security risks" posed by online voting, CyberScoop reported Monday.

The return of ballots online by voters “faces significant security risks to the confidentiality, integrity, and availability of voted ballots,” CISA said in the advisory. “These risks can ultimately affect the tabulation and results and, can occur at scale.”

The Federal Bureau of Investigation (FBI), National Institute of Standards and Technology (NIST) and the Election Assistance Commission signed off on the DHS memo.

“[W]e recommend paper ballot returns as electronic ballot return technologies are high-risk even with controls in place,” the agencies said in a joint statement. “Election officials are best positioned to evaluate the risks and make decisions accordingly.”

Rep. Jim Langevin (D-R.I.), a House Homeland Security Committee member, called on CISA to publicly release the document to better inform the voters of the potential risk associated with internet-connected voting. “Our intelligence community has warned that malicious state actors such as Russia are trying to interfere in our elections, and we must heed the recommendations of the experts at CISA to bolster our systems,” he said in a statement.

Cybersecurity/Government Technology/News
US Marshals Service Suffers Cyber Breach
by Jane Edwards
Published on May 12, 2020
US Marshals Service Suffers Cyber Breach
US Marshals Service Suffers Cyber Breach

A cyber breach of a U.S. Marshals Service system resulted in the exposure of personal data of approximately 387,000 former and current prisoners at the end of 2019, Nextgov reported Monday. USMS sent letters to affected individuals notifying them of the intrusion and referring them to resources to help safeguard themselves from fraud and freeze their credit.

“The attackers were able to exploit a vulnerability in the system to extract sensitive personally identifiable information on approximately 387,000 individuals,” a spokesperson for the Marshals Service told the publication.

The cyber attack involved the DSNet system, which is designed to transport and house prisoners within the agency, Bureau of Prison and federal courts, and exposed the affected individuals' names, Social Security numbers, birth dates and addresses.

The Department of Justice’s (DOJ) security operations center informed USMS of the security breach, which was detected using a cyber monitoring tool, in December.

Government Technology/News
FAA’s Pam Underwood on Upcoming Initiatives Under New Spaceports Office
by Brenda Marie Rivers
Published on May 11, 2020
FAA’s Pam Underwood on Upcoming Initiatives Under New Spaceports Office
FAA's Pam Underwood on Upcoming Initiatives Under New Spaceports Office

Pam Underwood, director of the Federal Aviation Administration’s (FAA) Office of Spaceports, has said that her office is working with the U.S. Space Force to update management procedures for East and West-Coast ranges, SpaceNews reported Friday.

Underwood told attendees at a recent Global Spaceport Alliance meeting that the new office is developing an infrastructure grant plan for spaceports as well as revised launch and reentry regulations and other commercial launch promotion efforts.

“These are detailed activities that we take very seriously,” she said. “We’ve been able to talk with spaceports and get feedback about how this is impacting their daily activities and some of the economic and operational implications.”

The FAA recently established the Office of Spaceports in line with the Office of Commercial Space Transportation's (AST) reorganization plans and a 2018 reauthorization bill to improve licensing procedures as well as the commercial space transportation industry.

Underwood’s comments come after AST issued a launch site operators license to the Titusville-Cocoa Airport Authority to authorize space launches from Space Coast Regional Airport in Florida.

Government Technology/News
Air Force Metal Technology Office Applies Modern Methods to Aircraft Repair
by Nichols Martin
Published on May 11, 2020
Air Force Metal Technology Office Applies Modern Methods to Aircraft Repair
Air Force Metal Technology Office Applies Modern Methods to Aircraft Repair

Air Force Life Cycle Management Center’s Metal Technology Office uses a variety of technologies to replace aircraft parts and support repair operations across the force.

The office's team applies additive manufacturing, heat treatment, welding and other methods to help repair teams maintain aircraft, Wright-Patterson AF Base said Friday.

“We are the subject matter experts for the Metals Technology career field, which involves additive manufacturing, machining, welding, heat treating, parts repair and fabrication,” said Che Dacalio, an engineering technician at the office.

Dacalio's team visits U.S. sites to look at the work of metal technology shops and deliver needed training. Major U.S. commands have a total of about 190 MT shops.

"We seek to maximize MT Shop utilization to sustain continuous Air Force flight and improve mission generation by supplying parts on demand, anytime, from almost any Air Force installation and at a fraction of the costs when compared to similar contracted efforts," the engineer added.

For example, the office helped U.S. Air Force Academy model an already-obsolete spinner backing plate of a T-51 trainer aircraft. Afterward, Dacalio arranged with an MT shop at Luke Air Force Base for the local production of new spinner backing plates.

Government Technology/News
Space Force Tracking Reentry of China’s Long March 5B Rocket
by Brenda Marie Rivers
Published on May 11, 2020
Space Force Tracking Reentry of China’s Long March 5B Rocket
Space Force Tracking Reentry of China's Long March 5B Rocket

Maj. Cody Chiles, spokesperson for the Combined Force Space Component Command, said the U.S. Space Force is monitoring the reentry of a Chinese Long March 5B rocket into the Earth's atmosphere, Spaceflight Now reported Saturday.

Chiles told the publication that the Space Force’s 18th Space Control Squadron is heading tracking activities for the 100-foot rocket’s core stage as it facilitates an unguided reentry after a week in orbit for a crew capsule mission.

The rocket, which was maneuvering around Earth in an elliptical orbit on Saturday, is expected to be the largest object to conduct an unguided reentry in decades, the report states.

According to the Aerospace Corp., reentry prediction errors of at least one minute could have critical impacts such as discrepancies in debris locations.

Government Technology/News
U.S., Czech Republic Form Partnership to Promote 5G
by Nichols Martin
Published on May 11, 2020
U.S., Czech Republic Form Partnership to Promote 5G
U.S., Czech Republic Form Partnership to Promote 5G

The United States and the Czech Republic have agreed to assist each other as both countries are implementing the use of 5G networks for public and economic applications. Both countries made this agreement last Wednesday as a joint declaration.

The partnership aims to support cross-border commerce and services, fortify the connection between global economies and secure communications networks of both nations from interference, the U.S. Embassy in Czech Republic said Thursday.

The agreement also constitutes assessments on supplier transparency, corporate ethics and commitment; and whether network suppliers are improperly under foreign influence. The U.S. and the Czech Republic also plan to further discuss and promote 5G security in NATO.

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