BOCA RATON, Fla. - Terran Orbital Corporation (NYSE: LLAP), a manufacturer of satellite products for the aerospace and defense sectors, has been notified by the New York Stock Exchange (NYSE) of non-compliance with its continued listing standards. The notice, received on Monday, stated that Terran Orbital's stock had fallen below the required minimum average closing price of $1.00 per share over a 30-day trading period.
Despite the warning, the company's stock will remain listed on the NYSE during a six-month cure period, during which Terran Orbital can regain compliance. To do so, it must achieve both a closing share price and an average closing share price of at least $1.00 on the last trading day of any calendar month within this timeframe. The company is exploring various strategies to address the stock price deficiency, including a potential reverse stock split, pending shareholder approval.
The NYSE notification does not have an immediate effect on the trading of Terran Orbital's common stock, nor does it impact its business operations or SEC reporting obligations. The company has expressed its intention to maintain its NYSE listing and comply with all other listing requirements.
Terran Orbital specializes in providing comprehensive satellite solutions, including design, production, launch coordination, mission operations, and support. While the recent notice from the NYSE poses a challenge, the company has stated its commitment to resolving the issue within the allotted cure period.
This press release contains forward-looking statements regarding the company's plans to address its non-compliance with NYSE listing standards and should not be considered a guarantee of future performance. The company acknowledges that there are risks and uncertainties that could affect its ability to meet these objectives.
The information for this article is based on a press release statement from Terran Orbital.
In other recent news, Terran Orbital Corporation disclosed its Q1 2024 financial results, highlighting a revenue of $27.2 million, a 3% decrease year-over-year. The company reported a gross loss of $6.2 million for the quarter but maintains a robust backlog of $2.7 billion. CEO Marc Bell anticipates profitability by Q4 2024, focusing on efficient execution of contracts and progression in the commercial market.
The satellite solutions provider also announced an expansion of its service offerings under NASA's Rapid Spacecraft Acquisition IV contract. The addition of two space vehicle platforms, Nebula and Ambassador, complements its current offerings, aiming to expedite mission execution for government agencies. The company's increased involvement with NASA's space initiatives is seen as a positive development.
Lastly, Terran Orbital revealed a reshuffling of its executive team. Peter Krauss, Adarsh Parekh, and Mathieu Riffel have been appointed as COO, CFO, and CAO, respectively. This strategic move aims to bolster the company's operational efficiency and financial performance. These are the recent developments for Terran Orbital, providing a snapshot of its financial performance and strategic initiatives.
InvestingPro Insights
As Terran Orbital Corporation (NYSE: LLAP) navigates through its compliance challenges with the NYSE, a closer look at the company's financial health and stock performance provides a clearer picture of its current position.
According to InvestingPro data, Terran Orbital has a market capitalization of $149.92 million, illustrating a modest size within the aerospace and defense sector. The company's revenue has seen a growth of 23.45% over the last twelve months as of Q1 2024, indicating an upward trajectory in its core business operations.
Still, the company's financial metrics also reveal some challenges. Terran Orbital's gross profit margin stands at a low 2.82%, which could signal inefficiencies or high production costs relative to its revenue. Furthermore, the stock has experienced significant price volatility, with a 1-month total return of -21.61% and a 3-month total return of -31.83%, reflecting the market's concerns about the company's performance and outlook.
InvestingPro Tips highlight several critical issues for investors to consider. Terran Orbital operates with a significant debt burden and may have trouble making interest payments on its debt, which is a concern for financial stability.
Moreover, the company quickly burns through cash, which could impact its ability to fund operations and growth initiatives without additional financing. There are over 15 additional InvestingPro Tips available that delve deeper into the company's financials, stock performance, and projections, which can be accessed at https://www.investing.com/pro/LLAP for a comprehensive analysis.
For investors interested in gaining further insights and making more informed decisions, InvestingPro offers a wealth of information and analysis. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to exclusive data and expert tips that can help navigate the complexities of investing in companies like Terran Orbital.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.