🚀 $LLAP SPAC Was a "Dumb Idea"

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The Space Scoop

Week Ended 10.27.2023

Happy Friday! Space Primes delivered earnings this week, Terran Orbital met with investors to calm their nerves, Wall Street is bullish on Rocket Lab, and a mysterious $100M seed round was announced out of Singapore. Lets dive in.

Market Max-Q

Top Stories

1) Third quarter space earnings continued this week with space primes reporting. Highlights include:

• $BA - Defense, Space & Security

  • Revenue: $5.5B, +3% YoY

  • Oper Loss: $(924)M vs. $(2.8)B

  • Oper Margin: (16.9)% vs. (52.7)%

  • Backlog: $58B

  • Shares: -2.5%

• $GD - Aerospace

  • Revenue: $2.0B, -13% YoY

  • Oper Earnings: $268M, -14% YoY

  • Oper Margin: 13.2% vs. 13.3%

  • Total Backlog: $20B

  • Shares: +4.0%

• $NOC - Space Systems

  • Sales: $3.5B, +11% YoY

  • Oper Income: $312M, +8% YoY

  • Oper Margin: 8.9% vs. 9.2%

  • Shares: -1.1%

2) Cantor Fitzgerald initiated coverage on and is bullish on Rocket Lab ($RKLB).

• The Wall Street firm initiated coverage on the company with an "Overweight" rating and a price target of $6.00 per share. Shares traded +4.7% on the news.

  • "We believe RKLB benefits from a proven and successful launch track record, a diversified and recurring customer base, and multiple launch complexes with vertical integration."

• The analysts noted that RKLB benefits from a bilateral treaty between the US and New Zealand governments that permitting US launches and spacecraft technology launches in New Zealand.

• The firm is bullish that RKLB's “proven and successful launch track record is an important differentiator in the industry, and we expect the company to continue to benefit from frequent launches.”

3) Terran Orbital ($LLAP) held a virtual town hall meeting Thursday to cover recent events.

• Terran shares have been under pressure since de-SPAC and two weeks ago, an investor group sent a letter to the Board pushing for a 'strategic review and management change'.

• Terran responded last week and announced a virtual town hall to address its investors on Thursday ahead of earnings on Nov 14 (and to calm marketplace fears).

• Highlights include: 

  • Lowering 2023 revenue guidance >$250M following payment delays from Rivada

  • Rivada’s funding comes from a “large sovereign that has not yet publicly announced their support for the project”

  • Rivada has only paid Terran $5M to date, expecting $180M this year

  • Rivada "isn't the only elephant we're hunting"

  • Working to broaden its customer base domestically and globally

  • "Sufficiently funded to reach positive EBITDA and free cash-flow positive in 2024 without an additional offering"

  • Will enter into a six-month period to regain compliance with NYSE price rules

  • Expects no reverse split to maintain listing - "counting on investor faith"

  • Noted that the SPAC was a “dumb idea” and CEO would never do it again

In Other News

Qosmosys Raises $100M Seed

(Company)

The Singapore-based lunar lander startup raised the historic round from a "limited consortium of investors" via a "unique and protective funding mode." The capital will be allocated to developing its lunar transportation vehicle, ZeusX, which aims to fly in 2027. The three-year old startup is also anticipating a planned IPO by 2028 at the latest. More to come on this one..

Astra Looks To Raise $25M in Debt 

(SEC)

Per Monday's 8-K filing, $ASTR announced an executed a non-binding term sheet with JMCM Holdings LLC for the potential issuance of two-year, 12% senior secured convertible notes in a potential principal amount of up to $25M.

Chart of the Week

Terran Orbital's Choppy Week: Following an investor town hall and market trading halt, $LLAP shares found themselves +25% higher on the week.   

Links

• Terran Orbital ($LLAP) Receives NYSE Minimum $1.00 Share Price Listing Notice• Terran Orbital ($LLAP) Selected by Lockheed Martin ($LMT) To Build 36 Satellite Buses for SDA’s T2TL Constellation• Spire Global ($SPIR) Awarded Subcontract by Riverside Research for Space Force SDA Program• Terran Orbital ($LLAP) Subsidiary Awarded $4.7M Contract by ESA• BlackSky ($BKSY) Wins Back-to-Back Contracts From Legacy Ministry of Defense Customer• MDA ($MDA) Selects SpaceX To Launch Chorus Constellation in Q4’25• Rocket Lab ($RKLB) Receives FAA Authorization To Resume Launches• Terran Orbital ($LLAP) Awarded Additional $7.7M Lockheed Martin ($LMT) Contract• Intuitive Machines ($LUNR) Sets January 2024 for Historic U.S. Lunar Mission

Opinion

• The Launch Industry Strains Launch Licensing• Navigating the 3rd Wave of the New Space Economy• Space Junk Risk Gets Real• Six Trends To Watch in Commercial Earth Observation• Viasat ($VSAT): Value Trap? We Don’t Think So

Earnings Calendar

• $MDA: Nov 8 - Before Market Open• $BKSY: Nov 8 - Before Market Open• $SPIR: Nov 8 - After Market Close• $RKLB: Nov 8 - After Market Close• $SPCE: Nov 8 - After Market Close• $ASTR: Nov 13 - After Market Close• $LLAP: Nov 14 - Before Market Open• $ASTS: Nov 14 - After Market Close

*Company confirmed dates only.