OPTX Stock Jumps On ‘Most Critical Order’ In 25-Year History – Everything To Know About The US Space Force Contract

• Syntec will supply advanced optics supporting U.S. Space Force and NRO satellite operations.
• The company did not disclose the value of the order.
• Earlier this month, Syntec said its U.S. defense orders more than doubled to over $9 million.

Syntec Optics (OPTX) shares drew the spotlight on Monday after securing what it called the critical order in its 25-year history, supporting U.S. Space Force infrastructure and advanced reconnaissance operations.

OPTX shares were trading 17% higher at the time of writing, tracking their fourth straight session of gains.

OPTX’s $100M Backlog Target

Syntec said it will build advanced optics for government satellite constellations, including systems supporting the National Reconnaissance Office’s (NRO) network of low-Earth-orbit satellites. The technology is designed to help satellites collect information and transmit it to defense users.

“This is the most significant milestone in our over the quarter-century history,” said CFO Dean Rudy.

The company did not disclose the value of the latest order, but Rudy expects Syntec’s space product backlog to exceed $100 million.

“The NRO is funding a giant network of low-flying satellites, and the Space Force is going to keep growing that network through the rest of the 2020s. We are beginning to build a pro forma for space product lines in excess of $100 million in backlog,” Rudy said.

Space And Defense Orders Pile Up

The latest award follows a string of space and defense wins this year. In August, Syntec secured a recurring order to manufacture specialized waveguides for satellite communications.

In June, it announced nearly $2.4 million in additional orders for optics supporting weekly low-Earth-orbit satellite launches, taking recent orders for that product line to about $4.3 million.

Defense orders are also growing. Earlier this month, Syntec said its purchase orders for U.S. defense equipment had more than doubled to over $9 million, including optics used in missile guidance, night vision, targeting and lasers.

The order momentum comes amid strong financial performance. Second-quarter revenue rose 26% to a record $8.3 million, driven partly by a 36% increase in defense sales. Net income improved to $0.01 per share from a $ 0.01-per-share loss a year earlier.

Retail Turns ‘Extremely Bullish’ On OPTX

Retail sentiment surrounding OPTX on Stocktwits turned ‘extremely bullish’ over the past 24 hours.

OPTX shares have seen strong buying interest so far this year, surging more than 115%.

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