Advanced Television

Terran Orbital is again Compliant

April 4, 2024

Terran Orbital, which has a very healthy order book for smaller satellites (including 300 for Rivada Networks), is again “compliant” as far as the New York Stock Exchange (NYSE) is concerned. It means that its shares have been traded at above $1 per share since late-February. NYSE rules state that shares priced below $1 cannot be listed.

Based in Boca Raton, Florida, Terran Orbital, however, has suffered a few challenges. It experienced something of a shareholder revolt last October. This helped prompt a take-over bid on March 1st from Lockheed-Martin, already a shareholder in the company, which offered a $1 per share offer. Terran responded by creating a ‘poison pill’ restructuring of its shares.

Those events, plus concerns over Terran’s financial position, forced CEO Marc Bell to announce a detailed “strategic review” of its options. The review also meant that Terran cancelled its April 2 analysts call to discuss its full year 2023 financials.

Despite the absence of an investors call, there’s plenty of solid news for Terran, not least a subsidiary company (Tyvak International) winning a service contract from the European Defence Agency and its project for a Very Low Earth Orbit (VLEO) satellite, and claimed to be marking a significant leap forward in military space technology.

Terran’s revenue for last year was also in positive territory with growth of 44 per cent YoY of $135.9 million, although its net loss is improved at $151.8 million (2022: $164 million). It generated Gross profit of $8.6 million compared to $17.3 million loss in 2022.

However, while its spread of contracts has grown it is also very much dependent on one major contract from Rivada Space Networks for an initial 300 satellites, plus an option for an extra 300. That initial 300 is worth $2.4 billion to Terran, and its accounts show that Rivada has paid a modest $6.9 million as its initial payment.

Bell, speaking on a platform last month alongside Rivada’s Declan Ganley, stressed that Rivada was up to date on all invoiced payments.

Terran’s backlog, including the Rivada contract, is currently $2.7 billion. The Rivada contract is not just financially important but its technology could provide a compelling laser-driven ‘OuterNet’ (as Rivada describes its scheme) for the world’s telco and time-sensitive businesses.

Terran Orbital ended 2023 with $71.7 million in cash on hand. In Q4 2023 Terran Orbital brought in $31.6 million in revenue and reported a net loss of $42.8 million.

In addition to the Rivada contract, Terran is building 78 satellites for Lockheed-Martin as part of its order for the US Space Development Agency. It is also building a 16 satellite constellation for a new but unnamed customer.

Perhaps the most interesting element to emerge is Terran’s creation and offer to its industry customers of an ‘off the shelf’ suite of designs for seven different models of satellites with a commitment that these satellites can be delivered in 30-days and integrated with customer payloads within 60 days.

Categories: Blogs, Business, Inside Satellite, Satellite

Tags: , ,