Terran Orbital Corp (LLAP) has seen its shares rise by approximately 11% after announcing the receipt of a milestone payment and pre-announcing its year-end cash balance for 2023.
The company received a payment from Rivada Space Networks, which is related to a previously announced contract for the completion of a program milestone. Rivada is said to be up-to-date on all outstanding invoices, and Terran Orbital expects to receive additional milestone payments in 2024. Furthermore, the company anticipates meeting its delivery obligations under the Rivada Contract on schedule in 2025 and 2026.
As of December 31, 2023, Terran Orbital expects to report cash and cash equivalents of over $70 million, a significant increase from the $38.7 million recorded as of September 30, 2023. The company already had over $70 million in cash on hand as of October 31, 2023.
Marc Bell, Terran Orbital’s Co-Founder, Chairman, and CEO expressed confidence in the company’s strong financial position as it enters 2024. He believes that this financial foundation will enable the company to continue executing its strategic and operational objectives.
In response to this news, LLAP shares have surged by 10.6% to reach $1.27. This positive price action reflects investors’ confidence in the company’s strong financial position and its ability to meet its contractual obligations.
Terran Orbital Corp is a leading provider of space-based solutions, specializing in the design, development, and manufacture of nanosatellites. The company’s expertise lies in creating small, low-cost satellites that can be deployed in constellations to provide a range of services, including communications, Earth observation, and scientific research.
The receipt of a milestone payment from Rivada Space Networks and the strong year-end cash balance indicate that Terran Orbital is making significant progress in its operations and securing valuable contracts. This positive development bodes well for the company’s future growth and success in the rapidly expanding space industry.
As the demand for satellite-based services continues to grow, Terran Orbital is well-positioned to capitalize on these opportunities and further establish itself as a key player in the sector. With a strong financial foundation and a track record of delivering on its commitments, the company is poised for continued success in the years ahead.
