Astra Optimizes Workforce to Support Sustainable Long-Term Business Plan
- Astra Space has announced 278 cumulative committed orders of the Astra Spacecraft Engine, representing approximately $77 million of contract value. The majority of these orders are expected to be delivered through the end of 2024. The company's reallocation of its workforce to support the Astra Spacecraft Engine business indicates a focus on meeting customer commitments and increasing production and test capacity.
- Astra Space has reduced its overall workforce by approximately 25%, including a reduction of approximately 70 employees. The reduction and reallocation of resources is expected to delay the timing of the company's test launches and paid commercial launches.
Astra last announced 278 cumulative committed orders of the Astra Spacecraft Engine™ through March 30, 2023, representing approximately
In support of the Astra Spacecraft Engine™ business, Astra has reallocated approximately 50 engineering and manufacturing personnel from Launch Services to Space Products. This reallocation includes a combination of permanent reassignments and temporary assignments to support customer programs and increasing production and test capacity through the end of the year.
“We are intensely focused on delivering on our commitments to our customers, which includes ensuring we have sufficient resources and an adequate financial runway to execute on our near-term opportunities,” said Chris Kemp, Founder, Chairman and CEO.
In addition to this reallocation, Astra has also reduced its overall workforce by approximately
“I am grateful for the sacrifices that the employees impacted by this decision have made, and we are deeply committed to treating all impacted employees with the utmost care and respect during this transition,” continued Kemp.
Astra’s Launch Services organization remains focused on completing milestones for several launch customer contracts while continuing development of Rocket 4 and Launch System 2.0. The reduction and reallocation of Launch Services resources is expected to delay the timing of the Company’s test launches and paid commercial launches.
As discussed on our previous earnings call, Astra continues to make significant reductions to its operating expenses. Cumulative reductions in workforce are expected to result in over
The Company remains focused on thoughtfully pursuing opportunities to raise additional capital. Given the strength of our Astra Spacecraft Engine™ business, the Company has engaged PJT Partners, a global, advisory-focused investment bank, to act as the Company’s financial advisor in connection with future financing activities and to explore potential strategic investments in the Astra Spacecraft Engine™ business to strengthen Astra’s balance sheet.
Business Update
As part of this announcement, Astra is also providing the following preliminary estimates of certain unaudited financial results for the three months ended June 30, 2023, in order to support our continuing discussions with lenders and other potential financing sources. The data presented below has been prepared by and is the responsibility of the Company management. It is preliminary and unaudited, based on our estimates, and subject to further internal review by its management and compilation of actual results. The Company’s independent registered public accounting firm has not audited, reviewed, compiled, or performed any procedures with respect to the preliminary financial data presented below. Accordingly, the Company’s independent registered public accounting firm does not express an opinion or any other form of assurance with respect to this preliminary financial data. Ranges have been provided, rather than specific amounts, for the preliminary data because financial closing procedures for the three months ended June 30, 2023 are not yet complete.
For the three months ended June 30, 2023, we expect:
-
Revenues to be between
to$0.5 million ,$1.0 million -
GAAP net loss to be between
and$13.0 million ,$15.0 million -
adjusted EBITDA loss* to be between
and$32.1 million ,$34.1 million - basic shares outstanding to be between 271 million and 273 million shares,
-
capital expenditures to be between
and$2.9 million , and$3.9 million -
cash, cash equivalents and marketable securities to be between
and$26.0 million .$26.5 million
The preliminary estimates provided for adjusted EBITDA loss, basic shares outstanding, and capital expenditures are in line with the original guidance provided at the Q1 2023 earnings call on May 15, 2023.
The preliminary estimate of cash, cash equivalents and marketable securities guidance is lower than the range initially provided at the Q1 2023 earnings call on May 15, 2023 primarily due to delays in collecting on government receivables of approximately
Adjusted EBITDA loss is a non-GAAP financial measure. Please see our current report on Form 8-K filed August 4, 2023, with the SEC for more information on our use of Adjusted EBITDA loss and for a reconciliation of our preliminary estimated range of Adjusted EBITDA loss for the three months ended June 30, 2023 to its most comparable GAAP measure.
Litigation Update
The Company also announced a development in its securities litigation. On August 2, 2023, the Company received an order granting its motion to dismiss in the action before the
About Astra
Astra’s mission is to improve life on Earth from space® by creating a healthier and more connected planet. Today, Astra offers one of the lowest cost-per-launch dedicated orbital launch services of any operational launch provider in the world. Astra delivered its first commercial launch to low Earth orbit in 2021, making it the fastest company in history to reach this milestone, just five years after it was founded in 2016. Astra (NASDAQ: ASTR) was the first space launch company to be publicly traded on Nasdaq.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
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Investor Contact:
investors@astra.com
Media Contact:
press@astra.com
Source: Astra Space, Inc.
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