Access Evolution

AST SpaceMobile Provides Business Update and Second Quarter 2024 Results

MIDLAND, Texas -- AST SpaceMobile, Inc. (“AST SpaceMobile”) (NASDAQ: ASTS), the company building the first and only space-based cellular broadband network accessible directly by everyday smartphones, and designed for both commercial and government applications, is providing its business update for the second quarter ended June 30, 2024.

"We stand at a pivotal moment for AST SpaceMobile," said Abel Avellan, Founder, Chairman and CEO of AST SpaceMobile. "The arrival of our first five commercial satellites at the launch site marks the culmination of years of relentless innovation and perseverance, in partnership with industry leaders like AT&T, Google, Verizon, Vodafone, and Rakuten, among others. The upcoming orbital launch is a significant step toward fulfilling our mission to eliminate dead zones and empower communities worldwide with space-based cellular broadband connectivity."

Business Update

  • First 5 commercial satellites on target for dedicated orbital launch in first half of September, each the largest-ever communications arrays to be deployed commercially in low Earth orbit
    • Final assembly and environmental testing completed successfully at AST SpaceMobile manufacturing facilities in Texas
    • Satellites are now at Cape Canaveral preparing for launch vehicle integration ahead of a confirmed launch date
    • Secured FCC approval with initial license for launch of first 5 commercial satellites
  • Expanded the AST SpaceMobile commercial ecosystem, adding Verizon as strategic investor and customer, joining AT&T in the U.S.
    • Strategic investment by Verizon brings $100 million financial commitment, including $65 million ​of​ commercial prepayments and $35 million of convertible notes
    • Along with AT&T, which signed a definitive commercial agreement in May, enables nationwide ~100% geographical coverage target of the continental U.S. on premium 850 MHZ low-band spectrum
    • Continue to advance discussions with additional strategic partners, following the blueprint of commercial prepayments alongside commercial agreements
  • First 5 commercial satellites capable of U.S. nationwide non-continuous service with 5,600+ cells in premium low-band spectrum
    • Expect initial nationwide, non-continuous service to be available with AT&T and Verizon beta test users following in-orbit service activation over the coming months
    • Coverage and service to increase as satellite constellation is expanded with Block 2 satellites
  • ASIC chip tape-out phase completed with TSMC, expected to support up to 10x improvement of processing bandwidth per satellite
    • AST5000 ASIC is a novel, custom and low-power architecture developed over five years and approximately $45 million of development cost
  • Initial Block 2 BlueBird planning and production of 17 satellites underway at AST SpaceMobile manufacturing facilities in Texas
    • Approximately 95% vertically integrated for manufacturing of satellite components and subsystems, for which we own or license the IP and control the manufacturing process
  • Expanded U.S. Government relationship with initial in-orbit testing and additional early-stage contract awards to one of our prime contractors
    • Successful initial in-orbit and ground tests for non-communications applications, reflected in completed contractual milestones and revenue
    • Additional U.S. Government contract awards in recent months, with outlook for additional and larger sized contract awards

Second Quarter 2024 Financial Highlights

  • As of June 30, 2024, we had cash, cash equivalents, and restricted cash of $287.6 million. We have additional liquidity of $51.5 million in gross proceeds available to draw under the Senior Secured Credit Facility, subject to certain conditions and approvals
  • Total operating expenses for the second quarter of 2024 were $63.9 million, including $29.3 million of depreciation and amortization and stock-based compensation expense. This represents an increase of $7.9 million as compared to $56.0 million in the first quarter of 2024, due to a $5.6 million increase in general and administrative costs, a $1.7 million increase in engineering services costs, a $0.4 million increase in depreciation and amortization expense, and a $0.2 million increase in research and development costs
  • Total Adjusted operating expenses for the second quarter of 2024 were $34.6 million, an increase of $3.5 million as compared to $31.1 million in the first quarter of 2024, due to a $2.0 million increase in Adjusted general and administrative costs, a $1.3 million increase in Adjusted engineering services costs and a $0.2 million increase in research and development costs(1)
  • As of June 30, 2024, we have incurred approximately $347.5 million of gross capitalized property and equipment costs and accumulated depreciation and amortization of $99.3 million. The capitalized costs include costs of satellite materials for BlueBird satellites, advance launch payments, BlueWalker 3 satellite, assembly and integration facilities including assembly and test equipment, and ground antennas

(1) See reconciliation of Adjusted operating expenses to Total operating expenses, Adjusted engineering services costs to Engineering services costs and Adjusted general and administrative costs to General and administrative costs in the tables accompanying this press release.

This content extract was originally sourced from an external website (AST SpaceMobile via BusinessWire) and is the copyright of the external website owner. TelecomTV is not responsible for the content of external websites. Legal Notices

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