Rindi Salsabilla Putri, CNBC Indonesia
Market
Saturday, 19/08/2023 20:45 WIB
Photo: Rocket 4 Astra. (Astra)
Jakarta, CNBC Indonesia – A space company from the United States (US), Astra, has terminated 25% of its workforce. Not only layoffs, Astra also restructured to focus on the aerospace engine business.
Launching from CNBC International, Astra announced that it had cut around 70 percent of employees and reallocated around 50 employees from its rocket development program to the space product unit, last Friday (4/8/2023).
“We are extremely focused on fulfilling our commitments to our customers, including ensuring we have sufficient resources and an adequate financial foundation to execute our near-term opportunities,” said Astra Chairman and CEO, Chris Kemp, in a statement.
The workforce reductions are expected to result in quarterly cost savings of US$4 million or around IDR61.28 billion (assuming exchange rate of IDR15,321/US$), starting in the fourth quarter. Astra noted that it had a total of 278 orders for spacecraft engines, since four months ago, with a contract value of around US$77 million or around Rp1.17 trillion.
It hopes to fulfill “a large part” of the order by the end of 2024.
Photo: Astra CEO Chris Kemp. (Astra)
CEO Astra Chris Kemp
In other developments, Astra said it collected US$10.8 million or around Rp.165.46 billion in net proceeds from the sale of debt to investment group High Trail Capital.
Last year, Astra switched from the Rocket 3.3 vehicle earlier than expected to focus on the next version, an improved system called Rocket 4.0, after Rocket 3.3’s last mission failed mid-launch.
While the company targets its first launch of Rocket 4 later this year, in its securities filing, Astra noted its spacecraft engine business priorities “will influence the timing of the company’s future test launches,”
“The company’s ability to conduct a paid commercial launch in 2024 and beyond will depend on the final time and success of the initial test launch which in turn will depend on the resources the company can devote to Launch System development in the coming quarters,” said Astra.
The company also released preliminary second-quarter results. Astra expects to generate US$1 million or less in revenue during the quarter, with a net loss of between US$13 million and US$15 million, and a residual amount of cash and securities of around US$26 million.
Last month, Astra finalized plans to conduct a 1-to-15 reverse stock split. It is also seeking to raise up to US$65 million through an “in-market” common stock offering through Roth Capital and ending its previous agreement with B. Riley to sell up to US $100 million in common stock the company signed up to a year ago.
Astra said it had hired PJT Partners as financial advisors, with the company “focused on pursuing opportunities to raise additional capital.”
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2023-08-19 13:45:00
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