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Terran Orbital, the satellite maker, is revising its 2023 revenue forecast due to payment delays from Rivada Space. Despite this, the company’s largest customer is expected to pay 0 million later this year under their .4 billion contract.

During a virtual town hall meeting with shareholders, Terran Orbital CEO Marc Bell stated that the full-year revenue projection for 2023 will be lower than the previously forecasted 0 million. However, it will still represent a significant increase over the million earned in 2022. The company generated approximately million in revenue for the first half of 2023. The updated guidance will be published during the company’s third-quarter earnings update in November.

In addition to the payment delays from Rivada Space, Terran Orbital has also encountered delays with other unnamed “key awards.” Despite this, the company continues to support Lockheed Martin on Space Development Agency programs.

Terran Orbital currently has over 120 satellites under construction or recently launched, excluding the 300 satellites under contract for Rivada Space’s low Earth orbit broadband network.

Although the recent delays with Rivada Space have been a concern for Terran Orbital investors, Bell assured that the company has been transparent with them about the funding sources and future financing status. Rivada Space, a German subsidiary of Rivada Networks, has sought financial support from the U.S. Ex-Im Bank to finance the satellite constellation.

Bell emphasized that Rivada Space has already paid Terran Orbital more than million for the constellation program and has fulfilled all payment obligations to date. Terran Orbital has adjusted its ongoing efforts to reflect the delayed payments but can quickly ramp up its work if necessary.

To diversify its customer base, Terran Orbital is increasing the size of its business development and capture team. The company is currently pursuing 80 opportunities across 40 different customers, consisting of more than 2,800 satellite buses with a total value of over .7 billion.

Despite the challenges, Terran Orbital remains on track to achieve positive EBITDA next year and has over million in cash on hand. The company’s leadership and market credibility were recently addressed in an open letter from investors, calling for leadership changes and a strategic review. A member of Terran Orbital’s board of independent directors reaffirmed support for Bell during the town hall event.

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