Terran Orbital receives $7M addition to Tranche 1 contract

Written by Copernical Team Sunday, 29 October 2023 11:29

font size decrease font size increase font size
Print
Email

Write a comment

Boca Raton FL (SPX) Oct 27, 2023

Lockheed Martin has awarded Terran Orbital Corporation (NYSE: LLAP) an Engineering Change Proposal (ECP) to host additional payloads. The contract modification adds $7.7M to an existing satellite design and manufacturing program. This addition was awarded following a successful Critical Design Review (CDR) earlier this year. The modification incorporates additional previously anticipated scope i

Terran Orbital receives $7M addition to Tranche 1 contract
by Staff Writers
Boca Raton FL (SPX) Oct 27, 2023

Lockheed Martin has awarded Terran Orbital Corporation (NYSE: LLAP) an Engineering Change Proposal (ECP) to host additional payloads. The contract modification adds $7.7M to an existing satellite design and manufacturing program. This addition was awarded following a successful Critical Design Review (CDR) earlier this year. The modification incorporates additional previously anticipated scope into the contract. This modification brings the total value of the contract to just over $52 million.

Last year, Terran Orbital delivered 10 satellite buses to Lockheed Martin in support of their Tranche 0 Transport Layer contract with SDA. Terran Orbital is currently building 42 buses for Lockheed Martin to help the company fulfill its $700 million contract for the SDA's Tranche 1 Transport Layer (T1TL), currently scheduled for a late 2024 launch, and, as previously announced this week, Terran Orbital was just awarded 36 buses to help the company fulfill its $816 million contract for the SDA's Tranche 2 Transport Layer (T2TL), currently scheduled for late 2026.

Terran Orbital holds Town Hall Meeting with Shareholders
In other Terran news the company held its first live Shareholder Town Hall Meeting. The virtual Town Hall was open to the public and included a live audio and video stream, during which the Company's Chief Executive Officer, Marc Bell, and the lead independent director of the Company's board of directors, Stratton Sclavos, provided a financial, operational, and strategic update and held a Q&A session.

The following topics, among others, were discussed during the Town Hall:

+ The Company's recently announced contract wins valued at over $160 million across three separate programs and spanning two continents over the past week;

+ The Company's active engagement on 80 opportunities relating to more than 2,800 satellite buses for 40 different customers, collectively valued at over $2.7 billion, not including additional opportunities valued at $1.6 billion for its new Components and Module segment.

+ The Company's current expectation that it will have sufficient cash to cover capital investments and operations until becoming cash-flow positive, which is expected in 2024;

+ The independent directors' continued support of Marc Bell as Chief Executive Officer;

+ The Company's continued expectations to receive more than $180 million of customer payments from Rivada Space Networks and continued, near-daily, engagement with Rivada; and

+ The Company's expectation to reduce its revenue guidance for 2023, to be announced at the next earnings call, to less than previously announced guidance of at least $250 million, primarily resulting from delays in payments from Rivada and resulting impacts on expected timing of revenue recognition.

These significant achievements primarily reflect the Company's continued growth and excellence in providing innovative space-based solutions. Terran Orbital's commitment to advancing space and satellite technology, as well as setting new standards every decade, has earned the trust of a diverse range of customers ranging from government to commercial.

"These awards are evidence of the hard work and dedication of each Terran at Terran Orbital," said Marc Bell, Co-Founder, Chairman, and Chief Executive Officer at Terran Orbital. "We received an overwhelming amount of questions and were able to answer many of them during the meeting. We hope that our transparency yesterday demonstrates our continued commitment to be accessible to our shareholders; based on the feedback we received, we plan to do another town hall in the future."