Mynaric Updates Guidance on 2024 Key Performance Indicators, Lowering Revenue and Optical Communications Terminal Backlog Guidance

Rhea-AI Summary

Mynaric (NASDAQ:MYNA) has revised its full-year 2024 guidance, lowering two key performance metrics. The company now expects IFRS-15 revenue of EUR 14.1 million, down from the previous estimate of EUR 16.0-24.0 million. This reduction is primarily due to delayed shipments of CONDOR Mk3 terminals worth EUR 2.6 million, pushed to early 2025 because of supplier component shortages.

The company maintains its previous guidance for operating loss (EUR 55.0-50.0 million loss) and Cash-In from Customer Contracts (EUR 45.0-50.0 million). However, the optical communications terminal backlog forecast for December 31, 2024, has been reduced to 787 terminal units, down from the previous estimate of 800-1,000 units, due to contract timing shifts from 2024 to 2025.

Positive

• Operating loss guidance maintained between EUR 50-55 million
• Cash-In from Customer Contracts guidance maintained at EUR 45-50 million

Negative

• Revenue guidance lowered to EUR 14.1 million from EUR 16-24 million range
• EUR 2.6 million in revenue delayed to 2025 due to component shortages
• Terminal backlog forecast reduced to 787 units from 800-1,000 units
• Delays in new terminal orders contract closings

Insights

Financial Analyst

<p>This guidance update reveals concerning operational challenges for Mynaric. The <money>EUR 14.1 million</money> revised revenue projection represents a significant <percent>41.25%</percent> reduction from the high end of their previous guidance range. The component supply chain issues causing <money>EUR 2.6 million</money> in delayed revenue recognition points to execution risks in their manufacturing process.</p><p>The reduction in terminal backlog from 800-1000 units to 787 units suggests weakening market demand or competitive pressures. While the company maintains its operating loss and cash-in guidance, the combination of revenue shortfall and reduced backlog could pressure their working capital position, particularly concerning for a small-cap company with a market value of only <money>$21.1 million</money>.</p><p>In simple terms: Imagine a restaurant that promised to serve 100 meals but can only serve 60 because they couldn't get all their ingredients on time and fewer customers are making future reservations than expected. That's essentially what's happening here with Mynaric's optical communication terminals.</p>

Supply Chain Expert

<p>The component shortages affecting CONDOR Mk3 terminal shipments highlight vulnerabilities in Mynaric's supply chain management. For high-tech optical communication equipment, even minor component delays can cascade into significant production disruptions. The shift of deliveries into 2025 indicates inadequate buffer inventory strategies and possibly single-source supplier dependencies.</p><p>Think of it like a complex puzzle - missing even one small piece prevents completion of the whole picture. In Mynaric's case, their inability to secure all necessary components is preventing them from completing and shipping their products, directly impacting revenue recognition and customer satisfaction.</p>

MUNICH, DE / ACCESSWIRE / January 3, 2025 / Mynaric AG (NASDAQ:MYNA; ISIN: US62857X1019)(FRA:M0YN; ISIN: DE000A31C305) (the "Company") updates its full-year 2024 guidance published on August 20, 2024, for two of its key financial performance metrics.

IFRS-15 revenue: the Company now anticipates full-year 2024 IFRS-15 revenue of EUR 14.1 million compared to previous guidance of a range estimating between EUR 16.0 million to EUR 24.0 million. The guidance decrease reflects shipments of CONDOR Mk3 terminals, originally expected to ship in late 2024, to slip into early 2025, due to shortages of key components from suppliers. These delays resulted in approximately EUR 2.6 million of revenue for terminals previously expected to ship in 2024 now expected to ship and revenue recognized in early 2025.

Operating loss: the previous Company guidance of a range of operating loss estimating to range between a loss of EUR 55.0 million to EUR 50.0 million is unchanged.

Cash-In from Customer Contracts(1): the previous Company guidance estimating to range between EUR 45.0 million to EUR 50.0 million is unchanged.

Optical Communications Terminal Backlog(2): the Company now anticipates full-year optical communications terminal backlog at December 31, 2024 of 787 terminal units compared to the previously communicated Company guidance estimating to range between 800 to 1,000 terminal units. The guidance decrease is due to timing shifts in contracts for new terminal orders previously expected to close in 2024 now expected to close in 2025.

(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
Internet:	www.mynaric.com

SOURCE: Mynaric AG

View the original press release on accesswire.com

FAQ

What is Mynaric's revised revenue guidance for 2024?

Mynaric (MYNA) has revised its 2024 revenue guidance to EUR 14.1 million, down from the previous range of EUR 16.0-24.0 million.

Why did Mynaric reduce its 2024 revenue guidance?

Mynaric reduced its guidance due to delayed shipments of CONDOR Mk3 terminals worth EUR 2.6 million, caused by key component shortages from suppliers, pushing deliveries to early 2025.

What is Mynaric's expected terminal backlog for end of 2024?

Mynaric now expects its optical communications terminal backlog to be 787 units by December 31, 2024, reduced from the previous guidance of 800-1,000 units.

Has Mynaric changed its operating loss guidance for 2024?

No, Mynaric maintained its 2024 operating loss guidance, expecting a loss between EUR 55.0 million to EUR 50.0 million.

What is Mynaric's Cash-In from Customer Contracts guidance for 2024?

Mynaric maintains its Cash-In from Customer Contracts guidance for 2024 at EUR 45.0-50.0 million.