AAC Clyde (STO: AAC) CEO Luis Gomes again addressed investors driving sustainable profitable growth as the core company focus. Since the dilutive rights issue, Gomes has touted Data & Services as high margin and a driver for future growth. AAC Clyde’s second VDES and first Cyclops earth observation satellites are set to delivery data in 2025. This latest presentation largely mirrors Gomes’s presentation last month. However, when asked, Gomes stated AAC Clyde will provide 2025 revenue and EBITDA guidance early next year.
AAC Clyde’s four satellites Cyclops constellation will acquire forestry and agricultural data for which Gomes states AAC Clyde currently sees strong demand. Gomes specifically contrasted Cyclops’s 1.5 meter resolution with other earth observation constellations. He claims higher resolution satellites (unnamed, but undoubtably referring to Blacksky, Satellogic, Maxar, etc.) market to security and defense customers, not forestry and agriculture. Gomes argues satellites focused on civilian applications and could be used by forestry/ag customers tend to have worse resolution. Note: Sidus Space clearly (NASDAQ: SIDU) meets this description. Sidus is equipping Lizziesat satellites with cameras similarly aimed at forestry and agriculture, but with worse resolution than Cyclops. Gomes stated AAC Clyde will fill the gap between not-so-good resolution satellites (i.e. Sidus Space) and high resolution satellites. The first Cyclops satellite will launch in 2025.
For AAC Clyde’s VDES (VHF Data Exchange System) satellites, Gomes claims the technology is at an inflection point. Gomes pitches AAC Clyde as positioned to develop a “world leading” VDES business. Discounting any bias, AAC Clyde does appears to have a good head start. Their YMIR-1 satellite was the first satellite publicized (although not the first launched) to demonstrate 2-way VDES communication in orbit after a competitor’s satellite (Sternula-1?) apparently failed after its launch in 2023. (An April 2024 Sternula presentation approximately 15 months after launch of Sternula-1 does not reference the mission being successful.) However, VDES competition is wider than just Starnula. Alen Space plans its own test VDES satellite. The Nigerian government also plans launching its own VDESs satellites, and signed with Sternula. LusoSpace also plans a 12-satellite constellation of its own; however LusoSpace will order “satellite kits” from AAC Clyde. This appears to be the same 12-satellite constellation Gomes reference (not by name) in his presentation. Gomes acknowledges VDES competitors, but states AAC Clyde in orbit demonstration provides a “strong competitive advantage.”
Investors will wait until early 2025 for the 2025 financial forecast. Likely will be delivered with AAC Clyde’s Q4 and full 2024 year financials.