Mynaric's Revenue Revision: A Blip or a Trend?
Friday, Jan 3, 2025 2:48 pm ET
Mynaric AG, a leading provider of laser communications terminals, has updated its 2024 key performance indicators, lowering its revenue and optical communications terminal backlog guidance. The company now anticipates full-year 2024 IFRS-15 revenue of EUR 14.1 million, down from its previous guidance range of EUR 16.0 million to EUR 24.0 million. This revision is primarily due to the delay in shipments of CONDOR Mk3 terminals, originally expected to ship in late 2024, which have slipped into early 2025 due to shortages of key components from suppliers.

The delay in shipments has resulted in approximately EUR 2.6 million of revenue being pushed into early 2025, leading to a decrease in Mynaric's full-year 2024 revenue guidance. Despite this setback, the company has maintained its guidance for a range of operating loss between EUR 55.0 million and EUR 50.0 million, indicating that its cost structure and expenses are not significantly affected by the delays.
The decrease in the optical communications terminal backlog, from a range of 800 to 1,000 terminal units to 787 terminal units, is due to timing shifts in contracts for new terminal orders previously expected to close in 2024, now expected to close in 2025. This reduction in backlog may indicate a slower start to 2025 in terms of new orders and revenue generation.
Mynaric's revised guidance raises questions about the company's ability to execute its business strategy and meet its financial targets. The delays in shipments and revenue recognition may impact investor confidence in the company's ability to maintain its momentum. However, it is essential to note that this is a temporary setback, and the company is taking steps to mitigate these delays and ensure timely delivery of the terminals in 2025.

In conclusion, Mynaric's revised 2024 guidance reflects a temporary setback due to component shortages and shipment delays. While the company has maintained its operating loss guidance, the decrease in revenue and terminal backlog may impact investor confidence. Mynaric is taking steps to mitigate these delays and ensure timely delivery of the terminals in 2025. As the situation unfolds, investors should closely monitor the company's progress and assess the potential impact on its long-term growth prospects.