Sam Gates's questions to LLAP leadership • Q3 2023
Question
Asked about the economics of the latest Tranche 2 Transfer Layer contract compared to previous tranches, and inquired about the revenue conversion timeline and total addressable market for the new responsive space initiative.
Answer
The new Tranche 2 award is larger and expected to have margins in the mid-to-high teens, comparable to other SDA programs, with expectations for future margin improvement. The responsive space initiative, aimed at delivering satellites in days instead of years, is currently bidding on 6-8 month turnaround programs and is expected to be fully operational by Q4 2024, targeting a very large global market.