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High Water Mark

posted May 14, 2018, 6:04 AM by Doug Sinclair
In July of last year, we noted that the order book was momentarily empty.  On January 15 we announced that the order book has closed for flight models for 2018.  Even so, there has been some expansion as outstanding proposals have been accepted and contracts signed.

Today the order book sits at its highest point ever: exactly $9.99M spread over 171 deliverable units.  We have hardware that should ship out to three customers by the end of the month, and I hope we can bring that number back down significantly.

Unsolicited advise for others who may want to start their own business in this field: be prepared for ebbs and flows.  The shot noise in constellation contracts can kill you -- zero is too few, two can be too many, and the various constellation customers are uncorrelated with each other.  But relying on a single customer puts you at the mercy of program slips.  Keep a lot of liquidity on hand, as you may need to ramp up towards a big piece of work that will not pay out for a year.