Terran Orbital Corp (NYSE:LLAP) Misses Expectations

Terran Orbital Corp (NYSE:LLAP), a vertically integrated provider of end-to-end satellite solutions, stock fell 3.73% (As on April 2, 11:28:38 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the fourth quarter of FY 23. Terran Orbital Corp’s gross profit turned positive at $8.6 million, a remarkable recovery from the prior year’s gross loss, indicating an effective cost management and operational efficiency. The net loss has been reduced to $151.8 million from $164 million, showing the company’s progress towards profitability. The company’s cash balance stood at $71.7 million, providing a solid foundation for future growth.

The year 2023 was marked by strategic milestones for Terran Orbital Corp, including the manufacturing of 78 satellites for Lockheed Martin for Space Development Agency programs and the introduction of seven new standard bus designs. The company’s new Responsive Space Initiative, aimed at delivering standard buses in 30 days and integrated payloads in 60 days, highlights its commitment to innovation and customer responsiveness. The commissioning of the new 50 Tech facility and the groundbreaking of the Goodyear expansion facility are indicative of the company’s expansion and scaling efforts.

LLAP in the fourth quarter of FY 23 has reported the adjusted loss per share of 21 cents, missing the analysts’ estimates for the adjusted loss per share of 20 cents. The company had reported the adjusted revenue of $31.9 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue by $1.21 million. Cost of sales for the quarter was $32.1 million compared to $42.7 million in the same period in the prior year, and $127.4 million for the full year, compared to $111.5 million for the prior year. The increase in cost of sales for the full year was primarily due to an increase of $25.8 million in direct and indirect program costs and $2.5 million in depreciation and amortization, partially offset by a decrease of $6.8 million in share-based compensation expense, $3.9 million loss reserve, and $2.1 million in scrap and obsolete materials and services. Adjusted EBITDA was $(20.6) million for the quarter 2023, compared to $(26.1) million in the same period in the prior year, and $(77.4) million for the full year, compared to $(69.5) million for the prior year. Capital expenditures totaled $23.1 million in 2023, up from $22.5 million in 2022. The backlog totaled $2.7 billion as of December 31, 2023, of which $2.4 billion is related to Rivada Space Networks, compared to backlog of $170.8 million as of December 31, 2022.

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