Space lasers company's revenue guidance cut and CFO departure cause Mynaric stock to plummet.

• Nearly 70% of Mynaric's 2024 revenue guidance was slashed at the midpoint due to production delays in its laser communications product.
• The company also announced the departure of CFO Stefan Berndt von-Bulow.
• Mynaric shares fell more than 50% on Tuesday trading.

The stock price of the company plummeted in trading on Tuesday following the announcement of significant reductions to its earlier revenue projections and the resignation of its CFO.

Mynaric, a Germany-based company, reduced its 2024 revenue forecast by approximately 69% at the midpoint, changing its previous range of €70 million to €50 million to a range of €24 million to €16 million (US$18 million).

The company had stated that revenue outlook as recently as June 20.

The guidance decrease is due to production delays of our satellite laser communication terminal CONDOR Mk3 caused by lower than expected production yields and component supplier shortages of key components, according to Mynaric.

Since 2018, Berndt von-Bulow has been with the company and has been serving as CFO for the past four years. However, he has now announced his voluntary departure for personal reasons, effective last week.

The German space lasers company debuted on the Nasdaq in late 2021 at a market value of approximately $325 million. However, the stock has declined steadily since, falling below $2 a share and trading below a market value of $50 million, according to FactSet.

On Tuesday, Mynaric shares experienced a more than 50% decline from their previous close of $4.15 a share, approaching their worst trading day since going public.

Optical communication terminals are produced by Mynaric, which utilizes lasers to transmit data from one location to another. The company's target market includes supplying companies and government organizations involved in satellite constellation building, particularly for broadband and imagery purposes.

Myanric has secured several contracts, notably from companies constructing satellites for the Space Force's Space Development Agency, and has a backlog of orders for up to 1,000 terminals.

As of Friday, the company had €6.3 million in cash reserves, according to a warning.

Mynaric stated that due to the lower revenue and cash inflow for fiscal year 2024, we will have to look for additional sources of capital to sustain our operations and increase production.