2023-07-28 16:31:41 ET
Gogo Business Aviation ( NASDAQ: GOGO ) fell 9% after disclosing that it would delay its 5G system launch due to a design error in a non-5G component of its chip that was designed by a third-party subcontractor.
"We are disappointed in this delay but remain confident that Gogo 5G will deliver better performance and better value than competitive ATG or GEO satellite solutions," Sergio Aguirre, Gogo's president and chief operating officer, said in a statement late Thursday.
Gogo ( GOGO ) now expects to deliver Gogo 5G in the middle of next year. The company still expects the project to remain on budget, though the delay is anticipated to reduce 2023 revenue by about $7 million and defer approximately $13 million in operating and capital expenses from 2023 into 2024.
Gogo will share more details on the 5G delay during its Q2 earnings call on Aug. 7.
For further details see:
Why did Gogo stock fall today? Delay in 5G launch plans