Terran Orbital Customer Rivada Meets Rigorous Review for International Telecommunications Union (ITU) Waiver to Deploy Constellation (Image Credit: Rivada Space Networks)
U.N. Regulator Finds Rivada Meets Criteria to Launch Satellite Constellations Beginning 2026
BOCA RATON, Fla., July 6, 2023 – On Thursday, Terran Orbital Corporation (NYSE: LLAP) congratulated its customer Rivada Space Networks for receiving a waiver from regulators at the International Telecommunications Union.
Per a July 5, 2023 Rivada press release, the regulator’s waiver process sought evidence of Rivada’s financing for the project and information regarding satellite manufacturing and launch contracts with its key vendors, including Terran Orbital. The ITU waived a requirement for Rivada to put the first 10% of its planned satellite constellation into orbit by September 2023.
The waiver is also a significant milestone for Terran Orbital, allowing it to continue the development and manufacture of its first tranche of satellites for Rivada, under a contract the two companies signed in February 2023. The $2.4 billion contract calls for Terran Orbital to design and build 300 satellites, each weighing approximately 500 kilograms, with Rivada holding an option for a second tranche of 300 satellites.
Rivada’s two planned LEO constellations will comprise a communications network it calls the OuterNET. The program aims to produce a global network of laser-connected non-geostationary orbit satellites to provide secure, global, end-to-end enterprise-grade data connectivity with low latency for a host of customers in the telecom, enterprise, maritime, energy and government services sectors.
Terran Orbital Chairman and CEO Marc Bell said, “Terran Orbital congratulates Rivada on meeting the ITU’s stringent waiver review requirements. Terran Orbital is working with Rivada to forge a new market for low-Earth orbit satellites that provide fast, dependable telecommunications services for various enterprise and government customers across markets and countries.”
About Terran Orbital
Terran Orbital is a leading manufacturer of satellite products primarily serving the aerospace and defense industries. Terran Orbital provides end-to-end satellite solutions by combining satellite design, production, launch planning, mission operations and on-orbit support to meet the needs of the most demanding military, civil and commercial customers. Learn more at www.terranorbital.com.
Forward-Looking Statements
This press release contains, and Terran Orbital’s officers and representatives may from time to time make other public written and verbal announcements that contain, “forward-looking statements” for purposes of the federal securities laws. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. All statements, other than statements of present or historical facts, contained in this press release, regarding our business strategy, future operations and markets in which we operate or plan to operate, prospects, expectations and the expectations of our customers, estimates, plans and objectives of management are forward-looking statements. 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These forward-looking statements involve a number of risks, uncertainties (many of which are beyond our control), or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by the forward-looking statements contained in this press release, including, but not limited to: Rivada’s ability to obtain funding to sufficiently finance its operations and fund future installments of our manufacturing contract; Rivada’s continuing ability to receive and maintain required regulatory approvals to conduct its business; Rivada’s right to terminate our contract for convenience or default; our ability to scale-up our manufacturing processes and facilities in order to meet the demands of this program; design and engineering flaws that may exist in our products and the failure of our components and satellites to operate as intended; our ability to finance our operations, research and development activities and capital expenditures; expectations regarding our strategies and future financial performance, including our future business plans or objectives, anticipated cost, timing and level of deployment of satellites, prospective performance and commercial opportunities and competitors, the timing of obtaining regulatory approvals, retention and expansion of our customer base, product and service offerings, pricing, marketing plans, operating expenses; our ability to manufacture a large number of satellites in the anticipated timeframe; our anticipated costs associated with such manufacturing; market trends, revenues, margins, liquidity, cash flows and uses of cash, capital expenditures, and our ability to invest in growth initiatives; the ability to implement business plans, forecasts, and other expectations, and to identify and realize additional opportunities; anticipated timing, cost, financing and development of our satellite manufacturing capabilities; our ability to finance our operations, research and development activities and capital expenditures; our expansion plans and opportunities; our ability to comply with domestic and foreign regulatory regimes and the timing of obtaining regulatory approvals; our ability to finance and invest in growth initiatives; the possibility that we may be adversely affected by other economic, business, and/or competitive factors; the possibility that the COVID-19 pandemic, or another major disease, natural disaster, or threat to the physical security of our facilities or employees disrupts our business; supply chain disruptions, including delays, increased costs and supplier quality control challenges; the ability to attract and retain qualified labor and professionals and our reliance on a highly skilled workforce, including technicians, engineers and other professionals; our ability to achieve profitability and meet expectations regarding cash flow from operations and investments; our leverage and our ability to service cash debt payments and comply with debt maintenance covenants, including meeting minimum liquidity and operating profit covenants; our ability to access invested cash or cash equivalents upon failure of any financial institutions we bank with; limited access, or access on unfavorable terms, to equity and debt capital markets and other funding sources that will be needed to fund operations and make investments; litigation and regulatory enforcement, including the diversion of management time and attention and the additional costs and demands on our resources; and the other risks disclosed in our filings with the Securities and Exchange Commission (the “SEC”) from time to time, including under the heading “Risk Factors” in our Annual Report on Form 10-K filed with the SEC on March 23, 2023 and the prospectus dated May 24, 2023 related to our Registration Statement on Form S-3, (File No. 333-271093), which was declared effective by the SEC on April 18, 2023.
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