Space technology company Mynaric experienced a sharp decline in its stock value after announcing significant cuts to its 2024 revenue forecast and the departure of its Chief Financial Officer, Stefan Berndt von-Bulow. The Germany-based firm, known for its satellite laser communication terminals, slashed its revenue guidance by nearly 70% at the midpoint, reducing the previous range of 50 million euros to 70 million euros down to a range of 16 million euros to 24 million euros, or approximately $18 million.
This drastic reduction in revenue expectations comes less than two months after the company had reaffirmed its original outlook on June 20. Mynaric attributed the decrease in guidance to production delays related to its CONDOR Mk3 satellite laser communication terminal. The delays were caused by lower-than-expected production yields and shortages of key components from suppliers.
In conjunction with the revised forecast, Mynaric also announced the voluntary departure of CFO Stefan Berndt von-Bulow, effective last week. Berndt von-Bulow, who had been with the company since 2018 and served as CFO for the past four years, left the company for personal reasons.
The announcement sent Mynaric’s shares plummeting by 56% on Tuesday, closing at $1.83 per share—a record single-day drop since the company’s Nasdaq debut in late 2021. Mynaric, which initially entered the market with a valuation of approximately $325 million, now has a market value of under $50 million, according to FactSet.
Mynaric specializes in optical communication terminals that utilize lasers to transmit data between points, targeting companies and government organizations involved in building satellite constellations for purposes such as broadband and imagery. The company has secured several contracts, including those for satellites being developed by the U.S. Space Force’s Space Development Agency. These contracts represent a backlog of orders for up to 1,000 terminals.
Despite these contracts, Mynaric warned that as of Friday, it held only 6.3 million euros in cash reserves. The company acknowledged that with lower-than-expected revenue and cash inflows from customers in fiscal year 2024, it will need to seek additional capital to continue its operations and ramp up production.
Mynaric’s challenges underscore the difficulties that space technology companies can face in scaling up production and meeting the high demands of their target markets, particularly in a rapidly evolving industry where component shortages and production inefficiencies can significantly impact financial performance and investor confidence.
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