AST SpaceMobile Provides Preliminary Financial Results for Third Quarter 2022 and Update on BlueWalker 3 Test Satellite
October 26 2022 - 8:00AM
Business Wire
AST SpaceMobile, Inc. (“AST SpaceMobile”) (NASDAQ: ASTS), the
company building the first and only space-based cellular broadband
network accessible directly by standard mobile phones, is providing
its preliminary estimated financial results for the third quarter
ended September 30, 2022. A full third quarter business update is
planned for the first half of November.
Third Quarter 2022 Preliminary Estimated Financial
Results
- We ended the third quarter with cash and cash equivalents and
restricted cash of approximately $199.5 million, a decline of $2.9
million for the quarter
- We expect our total operating expenses including certain
non-recurring development and engineering expenses to be between
$41.0 and $43.0 million for the third quarter of 2022, including
$3.0 to $4.0 million of depreciation and amortization and
stock-based compensation expense
- As of September 30, 2022, we have incurred approximately $92.0
million of capitalized costs (including launch cost and
non-recurring engineering costs) related to the assembly, testing
and deployment of the BlueWalker 3 test satellite
- As of September 30, 2022, we have incurred approximately $43.1
million of capitalized property and equipment costs primarily
related to the Texas facilities, satellite antennas, satellite
parts assembly and test equipment, and leasehold improvements
Our unaudited condensed consolidated financial statements for
the three months ended September 30, 2022 are not yet available.
The preliminary estimated financial results are management
estimates based on currently available information and subject to
completion of financial closing procedures as of and for the three
months ended September 30, 2022. As a result, our actual results
may vary materially from the preliminary estimated financial
results included herein and will not be publicly available until we
file our Quarterly Report on Form 10-Q for the quarter ended
September 30, 2022. These estimates constitute “forward-looking
statements” as described in “Forward-Looking Statements” below. Our
independent registered public accounting firm, KPMG LLP, has not
reviewed or performed any procedures with respect to these
preliminary estimated financial results.
Update on BlueWalker 3 Test Satellite
We launched the BlueWalker 3 (“BW3”) test satellite into orbit
on September 10, 2022 from Cape Canaveral, Florida. We acquired
control of the satellite promptly after launch and have been
ramping up ground control operations and monitoring satellite
performance through telemetry, tracking and command (TT&C)
antennas. The satellite is operating normally and sensors and
actuators are ready. We are currently completing our pre-deployment
plan and waiting for optimal solar power generation conditions for
deployment, which will become favorable starting late next week, in
anticipation of deploying the phased array antenna, which is
currently expected to be completed on or about November 10, 2022
(T+2 months). The actual date of unfolding is subject to numerous
factors beyond our control and the date could differ from this
estimate.
About AST SpaceMobile
AST SpaceMobile is building the first and only global cellular
broadband network in space to operate directly with standard,
unmodified mobile devices based on our extensive IP and patent
portfolio. Our engineers and space scientists are on a mission to
eliminate the connectivity gaps faced by today's five billion
mobile subscribers and finally bring broadband to the billions who
remain unconnected. For more information, follow AST SpaceMobile on
YouTube, Twitter, LinkedIn and Facebook. Watch this video for an
overview of the SpaceMobile mission.
Forward-Looking Statements
This communication contains “forward-looking statements” that
are not historical facts, and involve risks and uncertainties that
could cause actual results of AST SpaceMobile to differ materially
from those expected and projected. These forward-looking statements
can be identified by the use of forward-looking terminology,
including the words “believes,” “estimates,” “anticipates,”
“expects,” “intends,” “plans,” “may,” “will,” “would,” “potential,”
“projects,” “predicts,” “continue,” or “should,” or, in each case,
their negative or other variations or comparable terminology.
These forward-looking statements involve significant risks and
uncertainties that could cause the actual results to differ
materially from the expected results. Most of these factors are
outside AST SpaceMobile’s control and are difficult to predict.
Factors that may cause such differences include, but are not
limited to: (i) expectations regarding AST SpaceMobile’s strategies
and future financial performance, including AST’s future business
plans or objectives, expected functionality of the SpaceMobile
Service, anticipated timing and results of the BW3 test satellite
tests. anticipated timing and level of deployment of satellites,
anticipated demand and acceptance of mobile satellite services,
prospective performance and commercial opportunities and
competitors, the timing of obtaining regulatory approvals, ability
to finance its research and development activities, commercial
partnership acquisition and retention, products and services,
pricing, marketing plans, operating expenses, market trends,
revenues, liquidity, cash flows and uses of cash, capital
expenditures, and AST’s ability to invest in growth initiatives;
(ii) the negotiation of definitive agreements with mobile network
operators relating to the SpaceMobile service that would supersede
preliminary agreements and memoranda of understanding; (iii) the
ability of AST SpaceMobile to grow and manage growth profitably and
retain its key employees and AST SpaceMobile’s responses to actions
of its competitors and its ability to effectively compete; (iv)
changes in applicable laws or regulations; (v) the possibility that
AST SpaceMobile may be adversely affected by other economic,
business, and/or competitive factors; (vi) the outcome of any legal
proceedings that may be instituted against AST SpaceMobile; and
(vii) other risks and uncertainties indicated in the Company’s
filings with the SEC, including those in the Risk Factors section
of AST SpaceMobile’s Form 10-K filed with the SEC on March 31,
2022.
The planned testing of the BW3 test satellite may not be
completed due to a variety of factors, which could include loss of
satellite connectivity, destruction of the satellite, deployment
failure of the phased array, hardware or software system failures,
or other communication failures, and even if completed, the BW3
testing may indicate adjustments that are needed or modifications
that must be made, any of which could result in additional costs,
which could be material, and delays in commercializing our service.
If there are delays or issues with our testing, it may become more
costly to raise capital, if we are able to do so at all.
AST SpaceMobile cautions that the foregoing list of factors is
not exclusive. AST SpaceMobile cautions readers not to place undue
reliance upon any forward-looking statements, which speak only as
of the date made. For information identifying important factors
that could cause actual results to differ materially from those
anticipated in the forward-looking statements, please refer to the
Risk Factors incorporated by reference into AST SpaceMobile’s Form
10-K filed with the SEC on March 31, 2022. AST SpaceMobile’s
securities filings can be accessed on the EDGAR section of the
SEC’s website at www.sec.gov. Except as expressly required by
applicable securities law, AST SpaceMobile disclaims any intention
or obligation to update or revise any forward-looking statements
whether as a result of new information, future events or
otherwise.
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Investor Contact: Scott Wisniewski
investors@ast-science.com
Media Contact: Brandyn Bissinger press@ast-science.com +1
866 845 6521
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