Terran Orbital (NYSE:LLAP) has reported record revenue for the third quarter of its 2023 financial year as it benefitted from significant contract wins in recent periods.
The company generated revenue of $43.9 million in the three months to September 30, 2023, up 58% year over year. Adjusted gross profit amounted to $12 million compared to $3.2 million in 3Q 2022.
“I am pleased to report our company’s continued growth in revenue, which highlights the confidence and trust our customers have in us,” co-founder, chairman and CEO Marc Bell said in a statement.
“In addition, we are seeing improvements in our gross profit and adjusted gross profit margins. I am a big believer that if you control your supply chain you control your destiny.”
Bell noted that the company is still in the early stages of leveraging enhanced capabilities from investments made in its supply chain such as machinery, equipment, and automation.
“We believe these investments will help us position ourselves to win major customer awards while improving our operating metrics,” he continued.
Bell also highlighted recently announced new awards worth $160 million, including Terran’s selection to be a satellite bus provider for the Space Development Agency’s Tranche 2 of the Transport Layer Beta award.
“This award represents a continuation of our involvement on Tranche 0 and Tranche 1 of the Transport Layer, and we believe this is a prime example of how early-stage awards can blossom into larger awards over time,” Bell added.
The company recorded a net loss for the quarter of $26.4 million compared to a net loss of $27.4 million for the same period in the prior year. It attributed the decrease in net loss primarily to improvements in its loss from operations and a decrease in other expenses, partially offset by higher interest expense.
Due to the delay and uncertainty regarding the timing of performance related to its contract with Rivada Space Networks versus its original expectations, Terran Orbital said it is removing any further revenue contribution from the contract in the current financial year forecast.
However, it said it continues to expect a revenue contribution in future years.
As a result of this removal and other factors, it has guided 2023 revenue to be more than $130 million, down from its previous expectation of generating revenue over $250 million.
Terran Orbital is a leading manufacturer of satellite products primarily serving the aerospace and defense industries.
Contact the author at stephen.gunnion@proactiveinvestors.com