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Bullboard - Stock Discussion Forum Lite Access Technologies Inc V.LTE

Lite Access Technologies Inc. provides fiber optic products and advanced installation methodologies. The Company offers integrated solutions for all types of telecom requirements. Beginning with a comprehensive project analysis to engineering, design and permitting, it offers a full complement of aerial and underground construction methodologies, including splicing, testing and maintenance. The... see more

TSXV:LTE - Post Discussion

Lite Access Technologies Inc > When could the $86M new city contract(Norwich) be announced?
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Post by Accountant777 on Nov 20, 2020 1:17am

When could the $86M new city contract(Norwich) be announced?

Hi all,

Earlier this week I asked about the progress on the new city contract. It looks like  Norwhich could be part of the second phase of the ATAP. I'm not sure since Norwich was original announced as part of the first round of cities and that an additional 30 cities would be added in the fall. By the way, Norwich was not the only city to go unannounced.  Of the 36 cities announced back in March 2020, only 27 cities were actually awarded.

So I was wondering, does anyone have any idea of when these contracts will be annouced? Will they be announced all at once as part of phase two or could they be awarded piece meal since they were already previously announced?

It sounds like CityFibre originally wanted this work started earlier than Q2 2021. But this was before Bechtel. Does anyone thiink that this Norwich contract will be announced within the next 3 months?

For reference, here is my question to Rob and his response is in Red...

1) What is the status of the new city award/Norwich contract? We were providing a deployment plan for the new city and were expecting to start in January 2021. Is there any update?  As per CityFibre's own press release, 27 cities were awarded in the first phase of ATAP and "Before the end of the year, CityFibre will launch the second phase of the ATAP..."  Hence, the award process is not completed yet and Norwich was not on the list of first phase cities awarded. The company still fully expects to be awarded a city (cities) under ATAP.  The company submitted a proposal (rate card) for various cities under ATAP (they do not do the design work or sequencing of nodes - that is done by CityFibre.)  Actually, the break ground date was originally for Q2 2021.  Mobilization, which takes about 3-months, would therefore be Q1 2021.  Prior to the engagement of Bechtel, CityFibre had indicated starting earlier than the original date, however, Bechtel's engagement on September 21st delayed the ATAP award process.
Comment by FTTHFan on Nov 20, 2020 10:33am
CF has said that the rest of ATAP will be annonced before the EOY.   For what its worth - I think the do >$11m for Q4.  I margins will only slightly be improved.  I worry about the current quarter because of the lockdown.  Revenues will be fine but climb in margins - well .... Key to watch is can they land Norwich and then quickly land VM/Nokia.   They announced ...more  
Comment by Accountant777 on Nov 20, 2020 11:55am
Thanks for your thoughts FTTHfan. For the second phase of ATAP, you mean they will announce the 30 new cities by end of this year? So I presume that means they will take bids after that and announce award winners 3 months later. So maybe award winners announced at end of Q1 2021. Do you agree? On revenue, it seems like Rob's estimate of $10m for Q4 would be accurate. But I won't ...more  
Comment by yyy2017 on Nov 20, 2020 11:27am
They aim to get $85M contract, assuming if they only get half of it at $40M. With the current market cap at $18M (54c), if LTE get the contract of $40M (half of the original estimate), the price should be trade around $1~ $1.5 and if they get the full contract then it shuld be at $2+. The potential reward here is 3~4 bags, I like the my chance here!
Comment by Accountant777 on Nov 20, 2020 12:32pm
I agree yyy2017 that the rewards could be big! I like my chances too! With Norwich contract, I feel that it is an all or nothing proposition. Unless LTE has damaged the relationship somehow with CF or Bechtel, I'd put a high probability on this contract being awarded to LTE. If you look at how close Norwich is Lowestoft or Bury St Edmunds, it would be crazy for this to go to another company ...more  
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