Terran Orbital (NYSE:LLAP) shares jumped over 20% on Tuesday morning after telling investors it received a milestone payment for the completion of a program under its previously announced $2.4 billion contract with Rivada Space Networks.
As a result, the company said Rivada is current on all outstanding invoices. It expects to receive additional milestone payments in 2024 and continues to expect to meet its delivery obligations under the Rivada contract on schedule in 2025 and 2026.
Terran Orbital noted that as Rivada is a privately held company, it is not required to report any information regarding its financial or operational performance. At Rivada's request, it said it does not plan to provide any further updates or publicly comment on the contract, including but not limited to the status, timing and amount of any future payments to be made, unless required by the US Securities and Exchange Commission or in its own financial reporting.
Separately, the company pre-announced its 2023 year-end cash balance, saying it expects to report an excess of $70 million in cash and cash equivalents as of December 31, 2023, compared to cash and cash equivalents of $38.7 million as of September 30, 2023.
It noted that this was primarily due to the receipt of key customer payments at year-end.
“We are entering 2024 with a strong financial foundation that we believe will enable us to continue to execute on our strategic and operational objectives,” Terran Orbital co-founder, chairman and CEO Marc Bell said in a statement.
Shortly before midday in New York, the company’s shares were up 21.4% at $1.39.
Terran Orbital is a leading manufacturer of satellite products primarily serving the aerospace and defense industries. The company provides end-to-end satellite solutions by combining satellite design, production, launch planning, mission operations, and on-orbit support to meet the needs of the most demanding military, civil, and commercial customers.
~Updated with latest share price movement~