VANCOUVER (UrtheCast PR) — UrtheCast Corp. (TSX:UR) (“UrtheCast” or the “Company”), a technology company that is developing the world’s first Ultra HD video feed of Earth from space, today announces financial results for the three and six months ended June 30, 2014.The Company reported a comprehensive loss of $4.1 million in the quarter as compared to $10.5 million in the comparative quarter in 2013 and $3.9 million in the previous quarter. Our year-to-date comprehensive loss was $8.0 million as compared to $11.8 million in the comparable period of the previous year.
Recent highlights Include:
New Sensors on the US Side of the ISS
- The Company’s plans to install second-generation, state-of-the-art Earth Observation (“EO”) sensors on the NASA segment of the International Space Station (ISS). NanoRacks, UrtheCast’s partner in this endeavor, will work with the U.S. National Lab manager, CASIS, to facilitate the launch, installation and onboard integration of the sensors and hardware in line with its Space Act Agreement with NASA.UrtheCast will supply the sensors, electronics and other related hardware. These sensors and their components are scheduled to launch to the International Space Station in 2016, and the Company anticipates that the data will be available in 2017.
Major Contract Update
- The Company recently concluded negotiations with a confidential customer and anticipates final approval of budgetary allocation and signature on a five-year contract valued at US $65 million for value-added services and earth imagery data. The contract stipulates that a substantial portion is to be allocated for non-data related value-added services to be provided by UrtheCast over the first three years of the contract. The terms of the contract provide for the payment of a cash advance in the amount of 20% of the total contract value and a letter of credit for the balance of payments.
MRC IOC Achieved
- Initial Operational Capability (“IOC”) was achieved by the medium-resolution still camera (“MRC”), which means that the camera system is capable of large capacity data collections, the data is meeting all specifications and the Company’s cloud-based processing system is capable of generating imagery products autonomously. The engineering team continues to refine the operational and processing systems required to meet increased order volumes and produce value-added consumer products and services.
Technical and Corporate Update
- On July 16, we announced that our engineering team is continuing to commission and calibrate the Bi-axial Pointing Platform (“BPP”), which is required before test imagery can be acquired by the high-resolution video camera (“HRC”). The BPP enables the HRC to point in the direction of its targets and keeps its field of view stable while the ISS is moving at 25,000 kilometers per hour. During on-orbit testing the BPP experienced difficulties in achieving the pointing control precision needed for the HRC to meet image quality specifications. UrtheCast’s engineering team has developed a solution that has been successfully tested on the ground. Due to the cables having to be manufactured and delivered to the ISS, the on-orbit implementation of this solution will cause a delay of several months in the commissioning of the HRC.
- We have notified our insurers regarding the potential of a claim against our insurance policy resulting from the delay. The determination of whether we are in a position to file a claim will be made after we receive the results from the BPP and HRC testing procedures.
“This has been a significant quarter of achievement for our Company.We are bullish about our growth prospects,despite having to report a delay to our HRC commissioning,” explained Scott Larson, UrtheCast’s Chief Executive Officer. “Being able to make the transition into operations and the revenue stage is a huge milestone, one that we’ve been looking forward to. Of course, like all start-ups, we continue to monitor our costs closely. With the final negotiations on a significant contract that will help us finance the second-generation camera development, and with initial reaction to the release of our first MRC products, we look forward to providing unique, market-leading products and services not currently available.”
Results of Operations
Operating expenditures increased significantly in 2014 compared with the same period in the prior year, as additional personnel were added to support the infrastructure development necessary for the launch of the MRC and HRC in late 2013, and the anticipated start of commercial revenues.
Given our current cash position of $11.4 million and the potential proceeds from any successful insurance claims and from the long-term contract, if finalized, along with the initial expected revenues from the MRC, our funds are expected to be sufficient to get us through to the start of revenue generation by the HRC.
The full financial statements and accompanying Management’s Discussion & Analysis are available on UrtheCast’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at its website www.sedar.com, and on UrtheCast’s website at www.urthecast.com.
The Company hosted a conference call regarding its first half-year corporate earnings for 2014 at 2:00 p.m. PT (5:00 p.m. ET) on Tuesday, August 12, 2014.
An archived version of the conference call is available on the Company’s investor webcast page.
About UrtheCast Corp.
UrtheCast Corp. is a Vancouver-based technology company that is developing the world’s first Ultra HD video feed of Earth, streamed from space in full color. Working with renowned aerospace partners from across the globe, UrtheCast has built, launched, installed, and will soon operate two cameras on the ISS. Video and still image data captured by the cameras will be downlinked to ground stations across the planet and displayed on the UrtheCast web platform, or distributed directly to exclusive partners and customers. UrtheCast’s cameras will provide Ultra HD video and still imagery of Earth that will allow for monitoring of the environment, humanitarian relief, social events, agricultural land, etc. Common shares of UrtheCast trade on the Toronto Stock Exchange as ticker ‘UR’.
For more information visit our website at www.urthecast.com.