Mynaric Lowers Revenue, Cash-In from Customer Contracts and Increases Operating Loss Guidance for 2024 Due to Slower than Expected Production Ramp and Higher Production Costs

Rhea-AI Summary

Mynaric AG (NASDAQ:MYNA) has updated its 2024 financial guidance, lowering expectations due to production challenges. Key points:

• IFRS-15 revenue forecast reduced to EUR 16.0-24.0 million from EUR 50.0-70.0 million
• Operating loss expected to increase to EUR 55.0-50.0 million from EUR 40.0-30.0 million
• Cash-In from Customer Contracts guidance lowered to EUR 45.0-50.0 million from EUR 65-100 million
• Optical Communications Terminal Backlog guidance remains unchanged at 800-1,000 units

The company cites production delays, lower yields, and component shortages as reasons for the revised outlook. With only EUR 6.3 million in cash as of August 16, 2024, Mynaric is exploring additional capital sources to secure ongoing operations and production ramp-up.

Positive

• Optical Communications Terminal Backlog guidance remains unchanged at 800-1,000 units

Negative

• IFRS-15 revenue forecast reduced by 68-66% to EUR 16.0-24.0 million
• Operating loss expected to increase by 37.5-66.7% to EUR 55.0-50.0 million
• Cash-In from Customer Contracts guidance lowered by 30.8-50% to EUR 45.0-50.0 million
• Production delays of CONDOR Mk3 due to lower yields and component shortages
• Higher than expected production costs
• Low cash reserves of EUR 6.3 million as of August 16, 2024
• Need to pursue additional capital sources to secure ongoing operations

Insights

Financial Analyst

Mynaric's revised guidance paints a concerning picture for investors. The significant revenue downgrade from EUR 50-70 million to EUR 16-24 million signals severe operational challenges. This 68-66% reduction stems from production delays and component shortages, indicating potential supply chain vulnerabilities.

The increased operating loss projection (now EUR 50-55 million) further compounds the issue, suggesting inefficiencies in cost management. The reduced cash-in forecast (EUR 45-50 million vs. EUR 65-100 million) raises liquidity concerns, especially with only EUR 6.3 million cash on hand as of August 16. This cash position is alarmingly low, necessitating urgent capital infusion.

While the optical communications terminal backlog remains stable, the company's ability to fulfill orders is questionable given the production issues. Investors should closely monitor Mynaric's efforts to secure additional capital, as this will be important for the company's survival and ability to capitalize on its backlog.

Tech Expert

The production delays of CONDOR Mk3 due to low yields and component shortages highlight significant technical challenges. Low production yields often indicate immature manufacturing processes or design issues, which can be costly and time-consuming to resolve. The component supplier shortages suggest either poor supply chain management or industry-wide scarcity of critical parts.

Despite these setbacks, maintaining the optical communications terminal backlog is a positive sign, indicating continued market demand for Mynaric's technology. However, the company must rapidly improve its production capabilities to meet this demand. Failure to do so could lead to order cancellations and loss of market share to competitors.

The company's focus should be on resolving technical bottlenecks, improving yield rates and diversifying its supplier base to mitigate future shortages. These steps are important for Mynaric to regain investor confidence and secure its position in the optical communications market.

MUNICH, GERMANY / ACCESSWIRE / August 20, 2024 / Mynaric AG (NASDAQ:MYNA; ISIN: US62857X1019)(FRA:M0YN; ISIN: DE000A31C305) (the "Company") has today resolved an update to full-year 2024 guidance published on June 20, 2024, for its key financial performance metrics:

IFRS-15 revenue: the company now expects full-year 2024 IFRS-15 revenue to range between EUR 16.0 million to EUR 24.0 million compared to previous guidance of a range between EUR 50.0 million to EUR 70.0 million. The guidance decrease is due to production delays of CONDOR Mk3 caused by lower than expected production yields and component supplier shortages of key components.

Operating loss: the company now expects full-year 2024 operating loss to range between a loss of EUR 55.0 million to EUR 50.0 million compared to previous guidance of a range between a loss of EUR 40.0 million to EUR 30.0 million. The guidance decrease is mainly driven by the lower than expected revenue and higher than expected production costs due to lower yields.

Cash-In from Customer Contracts(1): the company now expects full-year 2024 guidance to range between EUR 45.0 million to EUR 50.0 million compared to the previously communicated guidance of a range between EUR 65 million to EUR 100 million. The guidance decrease is mainly driven by lower shipments and delays in the program awards relative to previous expectations.

Optical Communications Terminal Backlog(2): the previous company guidance of a range between 800 to 1,000 terminal units in backlog is unchanged.

As of August 16, 2024, the Company had cash and cash equivalents on hand of EUR 6.3 million. With the lower than previously expected revenue and cash-in from customers for fiscal year 2024, we will need to pursue additional capital sources to secure our on-going operations and production ramp. At this time, we are evaluating a number of different strategic options to address our near-term capital needs.

(1) Cash-In from Customer Contracts includes payments from customers under purchase orders and other signed agreements, including accrued payment milestones under customer programs.

(2) Optical communications terminal backlog represents the quantity of all open optical communications terminal deliverables in the context of signed customer programs at the end of a reporting period.

Further explanations about how Mynaric uses these metrics can be found in Mynaric's Annual Report 2023, which has been published on Mynaric's investor relations website.

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.

Company: Mynaric AG
Bertha-Kipfmüller-Str. 2-8
81249 München
Germany
Phone: +49 8105 7999 0
E-mail: comms@mynaric.com
www.mynaric.com

SOURCE: Mynaric AG

View the original press release on accesswire.com

FAQ

Why did Mynaric (MYNA) lower its 2024 revenue guidance?

Mynaric lowered its 2024 revenue guidance due to production delays of CONDOR Mk3 caused by lower than expected production yields and component supplier shortages of key components.

What is Mynaric's (MYNA) revised operating loss forecast for 2024?

Mynaric now expects a full-year 2024 operating loss ranging between EUR 55.0 million to EUR 50.0 million, increased from the previous guidance of EUR 40.0 million to EUR 30.0 million.

How much cash does Mynaric (MYNA) have on hand as of August 16, 2024?

As of August 16, 2024, Mynaric had cash and cash equivalents on hand of EUR 6.3 million.

What is Mynaric's (MYNA) updated Cash-In from Customer Contracts guidance for 2024?

Mynaric's updated Cash-In from Customer Contracts guidance for 2024 ranges between EUR 45.0 million to EUR 50.0 million, down from the previous guidance of EUR 65 million to EUR 100 million.