Sidus Space Inc (NASDAQ:SIDU) has posted second-quarter 2022 revenue of $1.85 million, a whopping 695% increase from a year ago, reflecting greater customer confidence as a result of previous deliveries and higher contract flow driven by an expanded sales team.
The Space-as-a-Service provider said it reversed a gross loss of $56,000 for the three months ended June 30, 2021, to a profit of $347,000 in the corresponding three months of 2022, attributable to higher revenue, a decrease in labor-intensive contracts and an increase in its higher margin Satellite-as-a-Service business line.
"In the second quarter, we continued to win contracts, customers and purchase orders while expanding existing partnerships, marking significant progress implementing our Space-as-a-Service strategy,” Sidus Space founder and CEO Carol Craig said in a statement announcing the results.
“Our manufacturing division continues to expand relationships throughout the industry, with Teledyne being just one example of how we have become an integral supplier to many space hardware manufacturers," she added.
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Craig said the company continues to secure new design and production opportunities, with recent successes including a role in one of the teams that won NASA's $3.5 billion Exploration Extravehicular Activity (xEVAS) services contract, which includes the design, development, production, and hardware processing for a new spacesuit and ancillary hardware tools.
At the same time, Sidus Space is making progress to prepare for the launch of LizzieSat, with the successful completion of a Phase I Safety Review and key partner selections, she added, noting a significant opportunity ahead for the company to capture a sizeable portion of the overall total addressable market of the Space ecosystem.
"We are excited about what lies ahead for Sidus and I am proud of our team's ability to meet the rapidly evolving needs for commercial space capabilities. We are confident we are taking the necessary steps on our path toward profitability and creating value for our shareholders," Craig concluded.
2Q highlights
The Florida-based company noted that operating expenses increased to $2.7 million for the three months ended June 30, 2022, compared to $418,000 for the year-ago period, resulting from expansion of its staff and facilities, as well as increased insurance, investor relations, legal and accounting fees that are associated with being a publicly traded company.
During the quarter, the company's principal shareholder forgave approximately $1.624 million of debt, consisting of the entire unpaid principal amount and accrued interest owed by the company to the shareholder, it added.
As of June 30, 2022, Sidus Space had $6.8 million in cash, and to supplement the company's cash position and enable its growth, it entered into a common stock purchase agreement on August 10, 2022, to raise up to $30 million of additional equity as funding needs arise.
Subsequent to the close of the quarter, NASA informed the company that the inaugural launch of its LizzieSat Constellation has been moved to the first quarter of 2023, it said, noting that the delay will have no impact on its production or 2022 revenue.
Located in Cape Canaveral, Sidus Space operates from a 35,000-square-foot manufacturing, assembly, integration, and testing facility providing a broad range of space-as-a-service offerings, including space-rated hardware manufacturing, design engineering, satellite manufacturing and platform development, launch and support services, data analytics services and satellite constellation management.
Contact the author at jon.hopkins@proactiveinvestors.com