Terran Orbital Corporation (NYSE:LLAP) said in the first quarter ended March 31, 2023, its revenue surged by 115% year-on-year to $28.2 million, driven by its progress in meeting customer contracts and significant contract wins.
The leading manufacturer of satellite products primarily serving the aerospace and defense industries said its net loss for the first quarter narrowed to $54.4 million from a net loss of $71.4 million for the same period in 2022, reflecting the absence of the non-recurring loss on extinguished debt recorded and a decrease in losses from changes to the fair values of warrant and derivative liabilities..
The company’s backlog as of March 31, 2023, totaled over $2.5 billion, driven primarily by its $2.4 billion contract with Rivada Space Networks. The first-quarter backlog includes over 360 satellites of which the majority are expected to be completed in the next three years.
The backlog represents the estimated dollar value of executed contracts, including both funded and unfunded portions of such contracts, for which work has not been performed.
“I am excited to announce our record recent awards and solid operational progress. Our momentum in new constellation awards and over 30 programs on contract today sets the stage for us to harvest the benefits of our strategic investments in capacity ahead of the market’s explosion of demand,” Marc Bell, co-founder, chairman and CEO, said in a statement.
“We are building a new satellite production system that will have a level of scale, vertical integration, and automation not available today. Our production system is designed to deliver satellites at mass scale at the speed and quality our customers desire, at a price point to stimulate new markets, and at margins to reward our shareholders. Our newest expansion will be coming online in the next few weeks and our next capacity increase is on schedule for a fall 2024 opening.”
The company added that its capital expenditures totaled $3.2 million in the first quarter while cash at the end of the quarter was $57.4 million.
Terran noted that on May 15, 2023, it announced a $87 million award to manufacture 16 satellites for a new customer.
Outlook
The company said the timing and execution of its new contract work with Rivada and other new customer constellation are variables for its full-year 2023 results but are the building blocks for a higher revenue base in 2024.
“Given our current view of our steep ramp ahead, we anticipate in excess of $250m in revenue in 2023. Upside beyond this level is possible depending on our successful execution of our customer commitments. We expect gross margins to demonstrate year-over-year improvement, but the pace of improvement may be variable given timing impacts. Capex is expected to be less than $30m,” it added.
The company said its first-quarter earnings call is scheduled for 11am ET today. The call can also be accessed by dialing 833-470-1428 within the U.S. and by dialing 404-975-4839 outside of the U.S. The passcode for both is 653839.
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