Rocket Lab, a U.S.-New Zealand business, had a busy first half. It posted earnings for the first six month of 2021 on Wednesday. This was the first such reporting since last month when the company went public.
Rocket Lab reported revenue of $29.5 million for the six-month period. Rocket Lab's order backlog grew to $141.4 Million as of June 30, an increase of 136% over $59.9 million in the same period last.
Although the overall trend appears positive, executives stressed the continuing impact of COVID-19 restrictions on New Zealand, where one of the company's key launch sites is located. After a pandemic that claimed 855 people, New Zealand implemented strict lockdown restrictions to protect the quarter's third quarter. Spice, the CFO, stated that the Pandemic has already impacted the quarter. Spice stated that there was no planned launch activity for the quarter and that it will have a likely impact of $10-15 million on revenue for the year.
Executives said that they expected a revenue of between $50 and 54 million annually despite these setbacks. GAAP operating expenses meanwhile reached $29.3million for the six-month period. This is an increase of $11.9 million from the first half last year. Spice explained that the majority of this increase was due to R&D spending. This included the development of an automated flight termination system as well as the Neutron launch vehicle.
Rocket Lab was founded in 2006 as a launch company. It has grown significantly since then. Rocket Lab, which was founded as a launch company, has grown to be an end-to–end space company. The company provides launch services as well as design, manufacture, and operation of spacecraft.
Rocket Lab has been growing this business for the past 18 months. Recent milestones include an agreement with Varda Space Industries to build three Rocket Labs Photon spacecraft and plans to send two Photons into space on a future mission. These developments are reflected in Rocket Lab's growth in its space systems division. For the six months, it generated a $5.4million share of revenue. This is up from $300,000.00 the previous quarter.
Rocket Lab stated that it will begin manufacturing satellite components at large scale by the end this year. This includes reaction wheels, critical attitude and stability control systems, as well as other components. Rocket Lab will open a new facility capable of producing as many as 2,000 reaction wheels per year, which is a significant increase over what was available before to the space industry.
CEO Peter Beck stated Wednesday that satellite components are typically produced in low quantities, which has slowed down the development of constellations. To address this problem, the [reaction wheel manufacturing] line was created. It allows for production at scale to meet growing industry needs.
The acquisition of Sinclair Interplanetary, a major satellite hardware manufacturer, gave Rocket Labs space systems division a tremendous boost. It is unlikely that this will be the company's last purchase. Spice informed investors Wednesday that Rocket Lab is currently investigating around half a dozen deals. We are now more confident in looking for opportunities and moving forward after the Sinclair acquisition.
He said that this market feels ripe for consolidation. He said that consolidation does not necessarily mean large companies joining together, but rather the fact that space can be invested in is a new phenomenon.
The Neutron rocket was not discussed by company executives. Beck stated that it is still developing well and that more detail will be provided in the next few months.
He said that Neutron is not an increase on Electron. It's a spacecraft that sets a new standard in the industry.
Rocket Lab announced today that it had signed a multi-launch agreement with Kinis, France's connectivity provider for Internet of Things devices. This contract will allow Rocket Lab to deploy its satellite constellation on five Electron missions. Kinis investors include French space agency Centre National dtudes Spatiales, and French space company Collecte Localisation Satellites.
This constellation will include 25 satellites, in addition to the more than 100 satellites Rocket Lab launched on its Electron rocket. The launch is scheduled for the second half of 2023.
Five Electron launches and 25 satellites later, one entire constellation. We have signed a deal to send their internet-of–things constellation to space with @KineisIoT. pic.twitter.com/8UtjGQS0gm Rocket Lab (@RocketLab) September 8, 2021
Rocket Lab's multi-launch deal with BlackSky, a satellite analytics company, is the latest in a series of deals Rocket Lab has made in recent months.
Rocket Lab's growth continues, with Wednesday closing at $15.09. This represents an almost 50% increase in Rocket Lab's market capitalization since August's public debut.