Astra Optimizes Workforce to Support Sustainable Long-Term Business Plan
Astra last announced 278 cumulative committed orders of the Astra Spacecraft Engine™ through
In support of the Astra Spacecraft Engine™ business, Astra has reallocated approximately 50 engineering and manufacturing personnel from Launch Services to Space Products. This reallocation includes a combination of permanent reassignments and temporary assignments to support customer programs and increasing production and test capacity through the end of the year.
“We are intensely focused on delivering on our commitments to our customers, which includes ensuring we have sufficient resources and an adequate financial runway to execute on our near-term opportunities,” said
In addition to this reallocation, Astra has also reduced its overall workforce by approximately 25% since the beginning of the quarter, including a reduction of approximately 70 employees that was announced on
“I am grateful for the sacrifices that the employees impacted by this decision have made, and we are deeply committed to treating all impacted employees with the utmost care and respect during this transition,” continued Kemp.
Astra’s Launch Services organization remains focused on completing milestones for several launch customer contracts while continuing development of Rocket 4 and Launch System 2.0. The reduction and reallocation of Launch Services resources is expected to delay the timing of the Company’s test launches and paid commercial launches.
As discussed on our previous earnings call, Astra continues to make significant reductions to its operating expenses. Cumulative reductions in workforce are expected to result in over
The Company remains focused on thoughtfully pursuing opportunities to raise additional capital. Given the strength of our Astra Spacecraft Engine™ business, the Company has engaged PJT Partners, a global, advisory-focused investment bank, to act as the Company’s financial advisor in connection with future financing activities and to explore potential strategic investments in the Astra Spacecraft Engine™ business to strengthen Astra’s balance sheet.
Business Update
As part of this announcement, Astra is also providing the following preliminary estimates of certain unaudited financial results for the three months ended
For the three months ended
-
Revenues to be between
$0.5 million to$1.0 million , -
GAAP net loss to be between
$13.0 million and$15.0 million , -
adjusted EBITDA loss* to be between
$32.1 million and$34.1 million , - basic shares outstanding to be between 271 million and 273 million shares,
-
capital expenditures to be between
$2.9 million and$3.9 million , and -
cash, cash equivalents and marketable securities to be between
$26.0 million and$26.5 million .
The preliminary estimates provided for adjusted EBITDA loss, basic shares outstanding, and capital expenditures are in line with the original guidance provided at the Q1 2023 earnings call on
The preliminary estimate of cash, cash equivalents and marketable securities guidance is lower than the range initially provided at the Q1 2023 earnings call on
Adjusted EBITDA loss is a non-GAAP financial measure. Please see our current report on Form 8-K filed
Litigation Update
The Company also announced a development in its securities litigation. On
About Astra
Astra’s mission is to improve life on Earth from space® by creating a healthier and more connected planet. Today, Astra offers one of the lowest cost-per-launch dedicated orbital launch services of any operational launch provider in the world. Astra delivered its first commercial launch to low Earth orbit in 2021, making it the fastest company in history to reach this milestone, just five years after it was founded in 2016. Astra (NASDAQ: ASTR) was the first space launch company to be publicly traded on Nasdaq.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
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