Griffin Bose B.'s questions to LLAP leadership • Q3 2023
Question
Asked about future gross margin expectations, whether the switch in propulsion suppliers for Tranche 1 affected Q4 deliveries and revenue guidance, the company's activity in MEO and GEO bus applications, and for clarification on the average satellite price implied by the company's pipeline figures.
Answer
Management is optimistic that the current 16.5% adjusted gross margin is an inflection point, with the current backlog having a margin profile in the low to mid-20s. The Tranche 1 delivery schedule is not delayed, but an attempt to deliver ahead of schedule was impacted by the supplier change. The company is actively bidding on MEO and micro GEO RFPs. The pipeline's average satellite price is a blend of various types, with costs ranging from $1 million to $15 million depending on the orbit and complexity.