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The company has signed a 1.3 billion dollar agreement with Firefly to supply engines for a new rocket project named Blacklift. This move suggests the company is looking to take more control over how it gets its satellites into orbit rather than relying entirely on outside launch providers like SpaceX.
Building a custom rocket is a massive undertaking that adds a new layer of technical risk and cost. While owning the launch process could eventually make it cheaper and easier to deploy its satellite constellation, it also requires significant cash and focus at a time when the company is still working to prove its core satellite-to-phone technology works at scale.
Source: Reuters
AST SpaceMobile has been awarded a contract to support the U.S. Space Force on a project focused on sensing technology. Working alongside prime contractor STR, the company will use its satellite technology to help the military detect and track objects or signals from space.
While the company is primarily focused on providing cellular service to smartphones, this project shows that its massive satellite arrays have other valuable uses for the government. These types of contracts provide a steady source of cash and help prove the technology's reliability while the company continues to build out its main commercial network.
Source: Business Wire
The company is scheduled to share its latest quarterly results on November 9. Analysts are looking for revenue of about 50 million dollars and a loss of roughly 42 cents per share. For a business at this stage, the most important details will likely be the timeline for its next batch of satellites and how much cash it has left to fund them. These updates provide a look at whether the company is staying on track to build out its global network.
Management will host a call to discuss the company's progress and answer questions after the market closes on Monday, November 9. This is a routine update where the company typically shares news on its satellite launches and any new partnerships with phone carriers.
Source: Business Wire
Brazil's telecommunications regulator, Anatel, has granted the company permission to use specific radio frequencies needed to provide satellite-to-phone service. This approval includes the S-band and secondary use of the 700 MHz band, which are the invisible airwaves that carry data between devices and satellites.
Securing these rights is a critical step because a satellite network cannot operate without legal access to a country's airwaves. The company also reached agreements with four regional mobile operators and plans to build local ground stations. This move into Brazil follows a similar pattern to its U.S. strategy, where it partners with existing carriers to turn their dead zones into connected areas without requiring users to buy new hardware.
Source: Business Wire
Management has missed its own earnings targets for eight straight quarters. This suggests the team is still struggling to accurately forecast the high costs of building a global satellite network.
| Expectation | |
|---|---|
| EPS | $-0.42 |
| Revenue | $46M |
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