LLAP - Terran Orbital seen benefiting from customer Rivada's regulatory development

2023-07-06 10:42:15 ET

Terran Orbital Corporation ( NYSE: LLAP ) congratulated its customer Rivada Space Networks on Thursday for receiving a waiver from regulators at the International Telecommunications Union.

The company said the waiver is a significant milestone in that it allows it to continue the development and manufacture of its first tranche of satellites for Rivada, under a contract the two companies signed earlier in the year. The $2.4B contract calls for Terran Orbital ( LLAP ) to design and build 300 satellites, each weighing approximately 500 kilograms, with Rivada holding an option for a second tranche of 300 satellites. Terran Orbital ( LLAP ) 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.

Weighing in on the development, Stifel analyst Erik Rasmussen said investors have not given Terran Orbital ( LLAP ) credit for the Rivada award upside and thinks the news validates LLAP's aggressive move to scale manufacturing.

Shares of Terran Orbital ( LLAP ) fell 0.77% after coming off a trading halt.

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