NewSat moves to reassure investors

Chairman's address says the satellite communications company is on track to "continued strong annual financial growth"

Satellite communications company NewSat (ASX:NWT) has moved to reassure investors over the future of the company with the issuing of a chairman’s address on the company’s financial progress.

In a personal address to shareholders, chairman Richard Green said NewSat was in a position to take advantage of the $80 billion market worldwide satellite communications market.

“NewSat is well placed to leverage off its infrastructure, with our teleports having a footprint of 75% of the worlds’ surface to continue to grow the business in this robust global market,” the address reads.

“Our recent announcement regarding half year financial results for the period ending 31 December 2009 further signify we are owners of a unique-to-Australia cashflow positive, monthly recurring revenue business that is on track for continued strong annual financial growth.”

Green said the company had a number of significant contracts under negotiation and had signed more than 200 “high grade” corporate contracts signed during the first 6 months of the financial year.

“We are confident of the continued success of NewSat and a financial performance to reflect this,” the address reads.

As reported by Computerworld NewSat also reported this month that it had recorded revenue growth of 21 per cent to $11.9 million for the six months to December 31, 2009 and also had reduced its net losses to $509,000. It also recorded its maiden positive EBITDA. The company also said it was on track to launch the Jabiru-1 ‘next generation satellite’ in the last quarter of 2012.

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