Mynaric Announces Preliminary Full-Year 2023 Results and Provides Outlook for Full-Year 2024
Mynaric (NASDAQ:MYNA) announced its preliminary unaudited results for the fiscal year ending December 31, 2023, highlighting significant milestones and a strong outlook for 2024. The company reported a backlog of 794 optical terminals at the end of 2023, up from 256 in 2022, and 829 as of June 20, 2024.
Key customer contracts were secured with Northrop Grumman, York Space Systems, Loft Federal, DARPA, the German government, and a Japan-based constellation. Revenue from customer contracts grew to EUR 49.2 million in 2023 from EUR 18.3 million in 2022.
In April 2024, Mynaric secured a US$ 20 million deferred draw term loan to support working capital. The company projected 2024 revenue to be between EUR 50-70 million with an operating loss of EUR 30-40 million. The terminal backlog is expected to be between 800-1,000 units, with cash inflows from contracts estimated at EUR 65-100 million.
Mynaric’s outlook assumes successful production ramp-up and securing new orders. However, it may need additional capital if there are delays in production or order placements.
- Backlog of optical terminals increased from 256 units in 2022 to 794 units by end of 2023, and further to 829 units by June 20, 2024.
- Revenue from customer contracts grew significantly to EUR 49.2 million in 2023 from EUR 18.3 million in 2022.
- Secured multiple key contracts with notable clients including Northrop Grumman, York Space Systems, Loft Federal, DARPA, and the German government.
- Achieved initial CONDOR Mk3 shipment at the end of Q1 2024.
- Secured a US$ 20 million deferred draw term loan in April 2024 to support working capital.
- Projected operating loss for 2024 is between EUR 30-40 million, indicating ongoing financial challenges.
- Potential need for additional capital if production schedule or order placements experience delays.
Insights
The preliminary results for 2023 show Mynaric's revenue and backlog of optical communications terminals have seen significant growth. The backlog increased from 256 units in 2022 to 794 by the end of 2023, indicating strong demand. Additionally, the company's cash inflow from customer contracts rose dramatically to
The revenue outlook for 2024 is between
Investors should note that Mynaric's projected cash in from customer contracts for 2024 is between
In conclusion, while Mynaric shows strong growth potential, investors must weigh the risks of significant operating losses and the need for additional capital against the company's expanding backlog and revenue growth.
Mynaric's 2023 results and 2024 outlook highlight its strengthened position in the laser communications market, particularly with key customer wins from established players like Northrop Grumman and York Space Systems. This speaks to the increasing adoption of their products in both government and commercial sectors.
The initial shipment of the CONDOR Mk3 terminals marks a significant milestone, as it indicates the company's ability to move from development to scalable production. This is important for maintaining competitiveness in the fast-growing aerospace and defense communications market.
However, the outlook suggests the company might face challenges in maintaining liquidity. With a cash inflow projection heavily reliant on customer orders and pre-payments, any delay or failure in securing these could necessitate additional fundraising. This dependency could introduce volatility to stock prices.
Investors should be cautious of this potential liquidity crunch, even as they recognize the company's strides in product development and market penetration.
Mynaric's advancements in laser communications technology, specifically with the CONDOR Mk3 terminals, are noteworthy. These products cater to a burgeoning demand in secure and high-speed data transmission for aerospace and defense applications. The backlog growth from 256 to 794 units within a year underscores a successful market adoption.
The company's achievements with marquee customers, including DARPA and the German government, highlight the technological credibility of its offerings. This is important for long-term positioning in a technology-intensive market.
However, the reliance on scaling production efficiently and meeting delivery timelines poses a significant operational risk. Any delays could impact customer satisfaction and future orders. Additionally, the high operating loss indicates that while the technology is promising, the company must optimize its production and sales processes to achieve profitability.
For tech-savvy investors, Mynaric represents a high-risk, high-reward opportunity, hinged on the company's ability to manage its production and operational costs effectively.
MUNICH, GERMANY / ACCESSWIRE / June 20, 2024 / Mynaric (NASDAQ:MYNA)(FRA:M0YN), a leading provider of industrialized, cost-effective and scalable laser communications products, today announces preliminary unaudited results for the fiscal year ending December 31, 2023.
"2023 marked a milestone year for Mynaric as we ended the year with record backlog of optical terminals, were awarded business with many marquee customers and prepared for serial production," said Mustafa Veziroglu, CEO of Mynaric. "In the first quarter of 2024, we completed our first CONDOR Mk3 shipment marking another significant milestone for the company."
Key 2023 and 2024 Highlights
- Optical Communications Terminal Backlog at December 31, 2023 of 794 units (256 units as of December 31, 2022) and 829 as of June 20, 2024
- Cash in from Customer Contracts of EUR 49.2million in 2023 (EUR 18.3 million as of December 31, 2022)
- Multiple wins with key customers such as Northrop Grumman, York Space Systems and Loft Federal for CONDOR Mk3 terminals, key contract with DARPA and the German government for multiple projects and a contract with commercial Japan-based constellation
- Initial CONDOR Mk3 shipment achieved at the end of Q1 2024.
- In April 2024, secured additional US
$ 20 million deferred draw term loan facility from primary lender to support working capital
Outlook
Mynaric is providing the following key performance indicators outlook for 2024:
In Euro millions and actual terminal units
| Revenue | €50 - €70 |
| Operating Loss | (€40) - (€30) |
| Optical Communications Terminal Backlog | 800 - 1,000 |
| Cash in from Customer Contracts | €65 - €100 |
For the fiscal year 2024, our revenue outlook is driven by shipments of CONDOR Mk3 units to multiple customers. This outlook assumes we are able to ramp to our current production plans. This outlook remains at the lower end of the most recent published analyst estimates for 2024 (for which the arithmetic average is approximately €65 million).
We expect our operating loss for the fiscal year 2024 to decrease significantly from last year's level due to higher revenue levels. This outlook remains in-line with the most recent published analyst estimates for 2024 (for which the arithmetic average is approximately -€36 million).
For the fiscal year 2024, our optical communications terminal shipments backlog outlook reflects expected new wins in the government and commercial sectors more than offsetting our projected shipments for 2024.
For the fiscal year 2024, our cash-in from customer contracts outlook reflects both cash-in from terminal shipments as well as customer pre-payments for new business wins.
The outlook is based on the current projected production ramp and current liquidity projection. Should Mynaric experience either a pushout in its production schedule, fail to secure new orders as planned or incur delays in securing new orders from customers, there is a high likelihood the company could need to raise additional capital. Mynaric is also considering pursuing multiple alternative options in order to secure its cash needs and bolster its long-term success.
Webcast details
Mynaric has scheduled a webcast to discuss its preliminary full-year 2023 financial results and 2024 outlook to be held today, June 20, 2024, at 12:00 p.m. Eastern Daylight Time (6:00 p.m. Central European Summer Time).
The conference call and webcast will include a presentation of these results along with a Q&A session with Mynaric executives including CEO, Mustafa Veziroglu, and CFO, Stefan Berndt-von Bülow.
Interested parties may listen to the webcast on the Investor Relations section of mynaric.com by pre-registering at the following registration link: Mynaric FY2023 Earnings Webcast Registration.
An archived version of the webcast along with corresponding slides will be available on the Investor Relations section of mynaric.com.
About Mynaric
Mynaric (NASDAQ: MYNA) (FRA: M0YN) is leading the industrial revolution of laser communications by producing optical communications terminals for air, space and mobile applications. Laser communication networks provide connectivity from the sky, allowing for ultra-high data rates and secure, long-distance data transmission between moving objects for wireless terrestrial, mobility, airborne- and space-based applications. The company is headquartered in Munich, Germany, with additional locations in Los Angeles, California, and Washington, D.C.
For more information, visit mynaric.com.
Forward-Looking Statement
This release includes forward-looking statements. All statements other than statements of historical or current facts contained in this release, including statements regarding our future results of operations and financial position, industry dynamics, business strategy and plans and our objectives for future operations, are forward-looking statements. These statements represent our opinions, expectations, assumptions, beliefs, intentions, estimates or strategies regarding the future, which may not be realized. Forward looking statements are often indicated by terms such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "goal," "intend," "look forward to," "may," "plan," "potential," "predict," "project," "should," "target" "will," "would" and/or the negative of these terms or other similar expressions that are intended to identify forward-looking statements.
The forward-looking statements included in this release are based largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements involve known and unknown risks, uncertainties and assumptions that are difficult to predict or are beyond our control, and actual results may differ materially from those expected or implied as forward-looking statements. These risks, uncertainties and assumptions include, but are not limited to (i) the impact of any geopolitical tensions or the global COVID-19 pandemic on the global economy, our industry and markets as well as our business, (ii) risks related to our limited operating history, our history of significant losses and the execution of our business strategy, (iii) risks related to our ability to successfully manufacture and deploy our products and risks related to serial production of our products, (iv) risks related to our sales cycle which can be long and complicated, (v) risks related to our limited experience with order processing, our dependency on third-party suppliers and external procurement risks, (vi) risks related to defects or performance problems in our products, (vii) effects of competition and the development of the market for laser communication technology in general, (viii) risks related to our ability to manage future growth effectively and to obtain sufficient financing for the operations and ongoing growth of our business, (ix) risks relating to the uncertainty of the projected financial information, (x) risks related to our ability to adequately protect our intellectual property and proprietary rights and (xi) changes in regulatory requirements, governmental incentives and market developments. Moreover, new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements.
The forward-looking statements included in this release are made only as of the date hereof. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Unless required under applicable law, neither we nor any other person undertakes any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release or otherwise. You should read this release with the understanding that our actual future results, levels of activity, performance and events and circumstances may materially differ from what we expect.
This release may include certain financial measures not presented in accordance with IFRS. Such financial measures are not measures of financial performance in accordance with IFRS and may exclude items that are significant in understanding and assessing our financial results. Therefore, these measures should not be considered in isolation or as an alternative to loss for the period or other measures of profitability, liquidity or performance under IFRS. You should be aware that our presentation of these measures may not be comparable to similarly titled measures used by other companies, which may be defined and calculated differently.
SOURCE: Mynaric AG
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