Filtronic PLC (LSE:FTC) shares took off after it secured a follow-on contract win from a satellite equipment provider worth US$4.25 million (£3.4 million).
The contract is for an upgraded customised amplifier module order for low-earth orbit (LEO) satellites, which is expected to be fully recognised in the 2024 financial year.
Filtronic will supply its solid state power amplifier (SSPA) module combined with a customised control board, to be installed in some ground station locations for the second phase of the customer's roll-out, which is designed to provide full E-band connectivity to recently launched LEO satellites.
"This programme is the first time that high bandwidth E-band frequencies have been successfully utilised, in volume, in a commercial global LEO space application," the UK company said.
Earlier this year, SpaceX's Starlink said it was using new technologies allowing E-band spectrum to be used and therefore providing around four times more capacity per satellite than earlier versions.
Broker Cavendish said Filtronic's win is "a significant step further into the LEO market highlighting the close relationship Filtronic enjoys with this highly respected customer following successful completion of the initial £2 million contract announced in January".
"Particularly, we are encouraged by the collaborative approach taken to develop the upgraded module with the customer’s design team, and note deployment optimisation makes both initial deployment and future upgrades easier, hinting at future opportunities."
The shares jumped 8% higher in early trading, but by early afternoon were up 3.1% at 16.5p.