An Electron rocket launches the Baby Come Back mission from New Zealand on July 17, 2023.
Rocket laboratory
Rocket laboratory Neutron is making steady progress in the development of its Neutron vehicle, with the company reporting fourth-quarter results that saw its contract backlog rise by more than $1 billion.
The aerospace company reported a net loss of $50.5 million, or 10 cents per share, during the quarter. On an annual basis, Rocket Lab's net loss in the fourth quarter widened by about 36% as the company continues to spend heavily to create its neutron rocket. Full-year losses widened by a similar amount, to $182.6 million, or 38 cents per share.
Revenue grew 16% year over year in the fourth quarter to $60 million, up from $51.8 million. Its launch business accounted for only $8.5 million of that amount, as the company emerged from a several-month hiatus in Electron missions, and its space systems made up the bulk at $51.5 million.
Rocket Lab's fourth-quarter revenue was just below the $62.9 million Wall Street expected, according to analysts surveyed by LSEG, formerly known as Refinitiv, while a net loss of 10 cents per share was in line with estimates.
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The company's order backlog has more than doubled year-over-year, helped in large part by a $515 million satellite contract from the Pentagon's Space Development Agency. Rocket Lab CEO Peter Beck noted in a press release that 2023 was a “record year for securing Electron launch deals,” with the company adding 25 contracts. Launches make up $248 million of Rocket Lab's backlog, with the rest representing its growing space systems business.
Rocket Lab shares fell 5% in after-hours trading from a close of $4.71.
Rocket Lab expects first-quarter revenue to range between $92 million and $98 million.
Neutrons advance and expand the assortment of spacecraft
Rocket Lab has provided multiple updates on its progress in developing its next-generation Neutron rocket, which aims to compete with the likes of SpaceX. Since revealing its plans for the Neutron in 2021, Rocket Lab has spent big to debut the vehicle in the next year or so.
The company's fourth-quarter investor presentation detailed several Neutron milestones achieved to date, including the start of production of rocket parts for the first launch, software simulation of the launches, and the completion of early testing of the Archimedes engines that will power the rocket.
Rocket Lab also detailed upcoming milestones this year for Neutron, including testing of the Archimedes engine and structural testing of the Neutron rocket's nose cone.
In addition, Rocket Lab announced the expansion of its spacecraft product line. Building on the success of the Photon satellite bus, the company has unveiled three additional spacecraft, called Lightning, Pioneer and Explorer, for a variety of customer missions, from low-Earth orbit communications satellites to deep-space scientific exploration of other planetary bodies.
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