Astrotech Corporation received a $1.29 million R&D contract from DHS to develop the TRACER 1000 explosives detection system.
Quiver AI Summary
Astrotech Corporation and its subsidiary, 1st Detect Corporation, have secured an R&D contract with the U.S. Department of Homeland Security to develop the TRACER 1000 for next-generation explosives trace detection. This contract, valued at up to $1,290,650 over 30 months, is aimed at enhancing detection capabilities in response to evolving threats. The research will be conducted in two phases, with the first phase valued at $581,639 and the second phase, which is contingent on the successful completion of the first, valued at $709,011. CEO Tom Pickens expressed enthusiasm for collaborating with DHS to enhance security for passengers and transportation systems. Astrotech, based in Austin, Texas, focuses on mass spectrometry technology and the commercialization of scalable security solutions.
Potential Positives
- Astrotech Corporation has been awarded a significant R&D contract with the U.S. Department of Homeland Security, valued at a total potential of $1,290,650, which can enhance the company's reputation and credibility.
- The contract focuses on developing advanced explosives trace detection capabilities, directly contributing to national security and potentially leading to future business opportunities in related sectors.
- The work on the TRACER 1000 aligns with critical safety measures for the transportation sector, showing the company's commitment to enhancing public safety and security.
- The contract's phased structure provides a clear pathway for potential revenue generation based on the successful completion of specified deliverables, mitigating financial risk.
Potential Negatives
- The total potential value of the contract awarded is relatively low at $1,290,650 for a 30-month project, which may indicate limited financial opportunity for the company.
- Phase 2 of the contract is contingent upon the successful completion of Phase 1, which introduces uncertainty and risk regarding future funding.
- The press release includes a lengthy cautionary note about various risks and uncertainties, which may raise concerns about the company's ability to execute on its plans and deliver anticipated results.
FAQ
What is the purpose of the R&D contract with DHS?
The contract aims to research and develop improved explosives trace detection capabilities for the Department of Homeland Security.
What is the total value of the DHS contract?
The total potential value of the contract is $1,290,650 over a 30-month duration.
What technology is Astrotech developing under this contract?
Astrotech is developing the TRACER 1000, a next-generation explosives trace detector.
How long does each phase of the project last?
Each phase of the project spans 15 months, totaling 30 months for both phases.
Who is the CEO of Astrotech Corporation?
The CEO and CTO of Astrotech Corporation is Tom Pickens.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
AUSTIN, Texas, Jan. 14, 2025 (GLOBE NEWSWIRE) --
Astrotech Corporation
(NASDAQ: ASTC) ("Astrotech" or the "Company") and its wholly-owned subsidiary, 1st Detect Corporation, announced that the Company has been awarded research and development (“R&D”) contract 70RSAT24CB0000015 (“Contract”) with the U.S. Department of Homeland Security (“DHS”) to research, develop and mature the TRACER 1000 for DHS next generation explosives trace detection (“ETD”).
The Contract is in support of the objectives stated in the DHS Long Range Broad Agency Announcement No. 18-01 (the “Announcement”). According to the Announcement, the purpose of this technical research is to develop new and improved ETD capabilities to address the increasing number of threats and tactics used to evade detection.
The research project is broken into two phases that each span 15 months. The contract has a total potential value of $1,290,650 for the entire 30-month duration of the project. The first phase is valued at $581,639. Phase 2, which is optional and contingent upon the successful completion of phase 1, is valued at $709,011. The exercise of Phase 2 depends on completion of specific deliverables.
Tom Pickens, CEO and CTO of Astrotech, said: “The Tracer 1000
TM
has been thoroughly evaluated by DHS and based on its capability, the Company has been awarded this important R&D project. We are pleased to receive this award and look forward to working with DHS in the development of the next generation explosive detectors. This new generation of ETDs will aid the effort of continuing to secure the safety of the world’s passengers, airports and airways.”
About Astrotech Corporation
Astrotech (Nasdaq: ASTC) is a mass spectrometry company that launches, manages and commercializes scalable companies based on its innovative core technology through its wholly owned subsidiaries.
1st Detect
develops, manufactures, and sells trace detectors for use in the security and detection market. Astrotech is headquartered in Austin, Texas. For information, please visit www.astrotechcorp.com.
Forward-Looking Statements
This press release contains forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, trends, and uncertainties that could cause actual results to be materially different from the forward-looking statement. These factors include, but are not limited to, the adverse impact of inflationary pressures, including significant increases in fuel costs, global economic conditions and events related to these conditions, including the ongoing wars in Ukraine and the Middle East and the COVID-19 pandemic, the Company’s use of proceeds from the common stock offerings, whether we can successfully complete the development of our new products and proprietary technologies, whether we can obtain the FDA and other regulatory approvals required to market our products under development in the United States or abroad, whether the market will accept our products and services and whether we are successful in identifying, completing and integrating acquisitions, as well as other risk factors and business considerations described in the Company’s Securities and Exchange Commission filings including the Company’s most recent Annual Report on Form 10-K. Any forward-looking statements in this document should be evaluated in light of these important risk factors. While we do not intend to directly harvest, manufacture, distribute or sell cannabis or cannabis products, we may be detrimentally affected by a change in enforcement by federal or state governments and we may be subject to additional risks in connection with the evolving regulatory area and associated uncertainties. Any such effects may give rise to risks and uncertainties that are currently unknown or amplify others mentioned herein. Although the Company believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. In addition, any forward-looking statements included in this press release represent the Company’s views only as of the date of its publication and should not be relied upon as representing its views as of any subsequent date. The Company assumes no obligation to correct or update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Contact:
Jaime Hinojosa
Chief Financial Officer
Astrotech Corporation
(512) 485-9530
https://www.astrotechcorp.com/
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