It is ‘all change’ at struggling satellite operator Avanti Communications. Technical director and co-founder Dave Bestwick steps down at the end of June. The CEO left the company last year.
The company managed to convert $557 million of debt into equity last month, and new shares were issued on April 26th.
A trading statement from Avanti, issued on May 30th, said that revenues for the 9 months to March 31st was just $31.3 million (same period last year $45.9 million). Avanti reported that bandwidth sales for the 9 months were down $1.9 million to $16.5 million.
Losses increased substantially, from the previous year’s $11.4 million to $18 million for the 9 months to March 31st. Avanti has a contracted backlog of $87.9 million (from $84.1 million).
Avanti will also change its financial year-end from the end of June to December 31st “to align the company’s reporting with the other key businesses in the industry”.
There was more bad news, in that Hylas 3, its significantly overdue satellite, will not now become ready to launch until Q2/2019. Hylas 4, launched earlier this year, is being tested and will shortly move to its designated slot at 33.5 degrees West.
There was no news from Avanti on how its cash-raising exercise is going (it needs to raise around $90 million) other than it “continues to pursue multiple lines of funding to complement the restructuring which the Board expects to conclude positively in the short to medium term.”