Voyager Technologies is buying BridgeComm Technologies for an undisclosed sum.
Details on the purchase are vague so far.
What we do know is that Voyager doesn't have a whole lot of cash to burn at its present rate.
Voyager Technologies (NYSE: VOYG), one of a handful of space companies angling to build the next space station to replace the International Space Station, announced today it has acquired privately held BridgeComm Technologies to accelerate Voyager's "ability to deliver advanced optical communication solutions for the defense and commercial markets."
Investors love the news, and Voyager stock is rocketing this afternoon -- up 11.1% through 12:45 p.m. ET.
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But is Voyager stock really worth 11% more today than it was at the close of trading last week all because of this acquisition? That's hard to tell.
For one thing, Voyager didn't disclose a purchase price for BridgeComm, nor give any detail on the target's own annual revenue or profitability. For another, while Voyager says it's doing the acquisition "to respond to one of the fastest-growing needs in defense and commercial communications," and that it will now be able to "develop differentiated systems on a much shorter schedule," there's no mention of specific contract opportunities that will open up to Voyager through this acquisition.
Lacking much detail, then, on how much Voyager is spending, or what exactly it's getting for its money, it's hard to say if this is good or bad news for Voyager stock.
What I can tell you is that Voyager stock is not currently profitable, having lost $82 million over the last 12 months. Voyager is cash-rich after its initial public offering (IPO), with $460 million more cash than debt on its balance sheet. But it's burning through cash reserves at the rate of $145 million per year, meaning the company has just three years' worth of cash left -- and now perhaps less than that after buying BridgeComm.
Let's just say that at this point, I'm not optimistic about Voyager stock.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.