ASTS - Earnings call 3 2023 | AST SpaceMobile, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the AST SpaceMobile Third Quarter 2023 Business Update Call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host today, Scott Wisniewski, Chief Strategy Officer of AST SpaceMobile. Please go ahead.

Scott Wisniewski

afternoon, good and you, everyone. Thank

you Let presentation, X the Page contains me our refer which safe of to harbor disclaimer.

During forward-looking forward-looking this statements. actual events current may statements and uncertainties. make on are to differ could are we and on cause factors result, assumptions, expectations today's based and materially risks call. a subject to Many These call, statements as certain from the

and annual For section uncertainties, on about and more risks SpaceMobile please update Factors the during Readers SpaceMobile's the to these this the with reliance that not forward-looking the for the December filed from time disclaims of statements, to XX-K Commission statements Securities AST discussed undue ended with any obligation and XX, report documents filed refer company Form Risk that are by the may specifically Exchange information to cautioned year other call. to time. be and put AST forward-looking SEC XXXX, on

we Also, with our after our initial shareholders. advance will be submitted in questions our by section Q&A starting remarks,

Page referring to Now X.

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Abel Avellan

call. Thank you, our QX like earnings to to Scott. everybody XXXX would I welcome

per our the [indiscernible] with world updates. recorded start space-based I worker like capabilities only We in X. and AT&T, megabit Turning program to successful SpaceMobile's patented-technology XX key Nokia, would Vodafone, XG that participation another demonstrated highlights partners, Rakuten This historic first a and highly and manufacturing caps to AST off and and data The Page XG, the include from connectivity. XG satellite-design validating strategy. testing second first and of with XG, rates.

ahead We full with a in in launch moving our first to well progressing speed speed the also full X XXXX. plans are Midland. Manufacturing is and QX satellites at

of for expect ago in rate historical to date, per complete a $XX progress first of and disclosed these with lastly, the XX% planned efforts million $XX million million capital already from be years quarter, profile, ] adjusted strategic run commercial costs. our progress to and expenses $XX QX timing as line with and operating few beginning $XX satellite, approximately Transition quarter. And we release. ] versus what As business [ to of measure press a satellites, expenditure approximately initiatives partners fundraising nonrecurring to R&D to XXXX to million including you to incurred in we the X advance continue is cost certain between launch update the interim multiple per we we [ have our

first satellites multiple documentation to ecosystem. is investment intended within capital the commercial commercial is and strategic diligence establish investment turn I We're progressing. how of wireless additional strategic X with to new manufacturing, let's the incremental satellites. some and relationship And beyond in new on and operation of provide fund strategic is BlueBird new forward This intended and financial, launch this our and to The additional completion Page partners. X, definitive detail moving can result on process

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telecommunications making we every voice have data third XG we a first history. In day row, connection in broadband a September, space. by and successfully the For and accomplished and in in ever we between another quarter for smartphone a the made modified space-based unprecedented cellular satellite leap

you dead a of The cellular from and completed placed was testing X rate Hana, and approximately XG video testing Vodafone, on on sessions AT&T our data success. record in space-based per call website. connection a would other Samsung achieving XX broadband Galaxy SAX of a milestones was Nokia, in to our X encourage Hawaii by collective previous brought ] our with the download the separate September [ XG we modified watch tab, partners, BlueWalker I located In also The wireless chairing megabits second. using zone.

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half XG achievement have emphasis where the Today, of ensuring download historic XG speeds per broadband directly States time placed comes an greater on megabits Our space of United broadband geographic a the coverage than has than cellular from United X States connectivity to Americans. at less with all second. XG

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Sean Wallace

the year been has Constellation. progress the since to Thanks, towards time, accomplishments and orbit and make It at Abel, Since of everyone. series a BlueWalker the Cape that a Canaveral. X AST sky into goal little in achieve was continued AST afternoon, a night over SpaceMobile building lifted of good

years. now most industry are and to industry, last which of XX rapidly the exciting giving is innovations the X mobile in the We the defining in device satellite becoming phone

begin the team technicians Since raising AST and BlueWalker SpaceMobile as the integration for completed testing to of next contributed groundbreaking and significant this dozens its capital part exciting progress Constellation. in utilizing to production watching results, An of made BBX fund the specialized SpaceMobile processes focus satellites the our with X all engineers Midland last earnings test call, BBX-Xs more as to advancement on the of year. expected facility highly is X, launch [indiscernible] production towards the launch targeted tangible well and AST continue of activity our and X

by for confirmation to by want hard-working team and who reviewing in the I on XX. are most and start Vodafone, sophisticated including and the suppliers want are always, thank metrics wireless the displayed technicians, engineers, the that partners operating key companies As world, the of Rakuten support of and recognize I Slide second to our our Nokia. TNT, some quarter

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our This flexibility capital. our liquidity rate of provides profile us manage comfort on depending can that we raising dynamically

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designs, and and BBX-X the work of of a efforts Block Block been expenditures. and construction our chip ASIC to significant development We X our material The reduction portion supporting completion have expected this and satellite in X BBX-X in satellites. design X, of the X operating [indiscernible] is work a of design expenses our result capital the BBX-X ASIC adjusted and future

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expenditures just a could component the capital investments And in I to BBX-X we of or investments may material changes capital for of for of described, our as this our the not be expenditures variety complete expenditures, and adjusted BBX-X. reduce earnings of to reach We call, I be and presentation operating to level factors. Timing delayed also and with pass that, as it Scott. final our back plan the have realized

Scott Wisniewski

you, Thank Sean.

queue questions address like please analyst investors. call submitted of question? us the to to go our you we the few first Operator, off by of a could the the Before with questions, of start we'd ahead

Operator

for the company offerings discuss differentiate Paris different Ask, works. and competitive from the are landscape that DTV the Rolando in the can

Abel Avellan

been about a have direct-to-device services. There tremendous Rolando. in Thanks,

up pull into when year, hands their our XXXX. have offering. lot This success. of clearly, is me-too get a details, a elements have scalable todays on funding you And But entirely systems hard past on the smartphones. [ ] other company seen problem, these development not companies of focused broadband their been are a in has with we they which or for since different the we Over compatible of

and date had AST pending we invested broadband. own and system is that manufacturing resulting in over our cellular differentiation million We designed for XG capabilities for patent first vertically only SpaceMobile patent claims $XXX over X,XXX are to critical in our and satellites. effort, the this ready

achieve well the shown to are rates what and today emergency have XG techs far systems XG. data are ability away able XG and from We to offering. achieve as have Other primarily narrowband being service we and

and serve the in with billion unique phones is in space for circulation phase scale own very our antenna, to the Our the up XG the combined critical largest MNOs achieving on and this X in smartphone needs partnership existing is large with directly array everyday of planet. to leading to ASICs

Operator

asked the from where from long how chip. get ASIC Anne design California you finalizing the

Abel Avellan

Santander, X-year development of The a this is cost substantially the process [ $XX excess design is in with ] us. at that a was the of million ASIC complete. behind mostly point

we start is tape months the produced foundry TSMC. by expect -- be is will process partner, in X after getting to around which able X which We process gets the the first out, the units our design to where where the

I space-based that available large of significant essentially of FPGAs, gigahertz this X phase would the reducing that cellular X,XXX want of cost to along feet X per our improvement square us broadband, of these power the a to ASIC. believe We programmable give to XXx for side and and remind our suite, spectrum gigahertz us XX everyone with current barrier flying while The satellites. consumption is entry commercial in bandwidth version expected which in is ASIC processing be the first the of array.

Operator

this on? reliant Wedin Can Zealand from New of testing be ] AST everything factory out at tested is [ point? much how

Sean Wallace

one. [indiscernible], take this and you, I'll Thank

included satellite other that to testing. move the we inefficient is had schedule. we before to we introduced extra California go the ship satellite which, [indiscernible] our back of to This and And several time Canaveral, had times. You and recall right Cape keep BlueWalker off-site may actually to X with course, testing, to

first facility our component vibration of commercial great capability in-house we out factory alongside X Abel our in Texas. for This brought thermal our at testing Site testing is will and RF testing. integration that and X that level conduct we've able to of Now satellites, level satellite This includes earlier. vertical all be the in-house Midland, discussed another

and our expect a of increase As times control compared we this, production shorten X. to to our result of significantly BlueWalker process

Operator

Zealand MNOs prior into to on from launch post decided do with or enter the they commercial [indiscernible] inclinations asked, serve? you to agreements which expect New as company initially attend

Sean Wallace

As at earlier, been grow we've list we agreements have we're we to billion the subscribers. now over over globally and who with, MNOs discussed MOUs XX operators continuing X cover of collectively that and

for be sign Our is in cover fact, inclination to satellites And some going up like the feedback. Operator, launch. customer in allows the hemispheres. I'd to open and to to to a recently first anywhere And we on to Northern shareholders globe let's the our that, for XX-degree We're questions. to agreements thank our satellites with plan call and at prior of these submitting based for the orbit XX-degrees Southern up our this inclination X questions both changed these now. latitude analyst

Operator

Instructions] [Operator

from Deutsche first Benjamin Soff Our is Bank. question with

Benjamin Soff

me. for couple A

can shape partnerships is, you you and what more process. take? investment X What there it the could strategic guys think is those first looking share for The you're on is color any

Abel Avellan

question. Ben, I the appreciate

This an we've for us. because funding phase is the also will relationships it in put out presentation commercial be this important not strategic that latest I us lays most think already. for but important of and information

details to where look we encouraged right forward now, we November we're and are So very during December. and more

Benjamin Soff

testing for, that milestone you've now the any? And are achieved connectivity, it. XG major if what's you looking Got next

Abel Avellan

build X to attention we're our -- our next attention turning are we turning Well, satellites. of the the

continue completed. have with the X. milestone of required testing major out We BlueWalker But BlueWalker X

Benjamin Soff

of give that but Got me. wondering then -- kind that's any the it forward? it trajectory there you decline, at is Okay. I to it. just And CapEx comment might guys And can the more pace what color going heard what and magnitude? on for

Sean Wallace

of big bump and some quarter, expenditures. Obviously, a some as final on our seen other up we've CapEx last payments pretty in a this BBX-X result BBX-X

lower quarters. number come expect don't in give last what We will from down we've X to the but seen there. be it materially We on guidance than significantly that, the

Operator

Securities. Our next Boss with is Riley B. question Griffin

Griffin Boss

have So are process me you learned to share capacity the multiple beam months regarding first so? a and concurrently for X ability insights you any within additional past is, there calls over or can that might certain

Abel Avellan

what what we Yes. I and satellite have bandwidth per mean support. of is that already the the guidance we given preliminary is can -- processing capacity

bandwidth. X Block FPGA-based about the system processing of X is with gigahertz For

With increment these that support ] a [ is assumptions. ASIC testing to XX and the processing bandwidth, fold XX gigahertz our

Griffin Boss

you I so multiple running you that any Okay. at don't time -- data at with X, calls Got -- single know goals. have it. then with been but multiple or BlueWalker test And just have a multiple I've once? seen testing video calls

Abel Avellan

Yes.

We simultaneous. multiple have and done

have also up [indiscernible] opened the system. We ratching to the let connecting pipes of hundreds to font

also the verified has been during that testing. So

Griffin Boss

was Okay. national security released Great. regarding that Appreciate the spectrum stepping just that. yesterday. And back, then U.S.

curious eye a the that, Just it notable you caught coverage Or anything that on was FCC supplemental faster anything to there relates developing suggests space? framework? your that there's might there as that if if in now such to as in

Abel Avellan

And are the it to that demonstrate we we we you as first Yes. and it. support invented to have at X Well, the device. only direct know, system broadband, a

encouraged by super item, are where we having system have a we what is it a the invented. first presidential basically So replicates notice that

We're about very eyes. We're very happy. So yes, our caught that that. encouraged

I in will think how be States. the our regulated in the particularly United will facilitate this future service in

system regulated United strategic in and reference our Together in investors, to problem. getting used a solve States variable big to strategic a other with and investors, be be is the significant countries. achieved current we also we around world had this progress for

broadband are devices. to of which that regular strategies system mentioned So to and a support be is spectrum, being expect presidential directly for where use only and we yes, the and basically provide we're very that can we connectivity proud part X of invented

are that. happy, by encouraged very we So we're

Griffin Boss

the I landscape. have Great. more X Got was if earlier away your opinions There just Iridium from you competitive of if wondering recently? Qualcomm any to could you sneak in. on question as why was walked And share a think any could then I it. if you

Abel Avellan

that Yes. When any this is that billion believe this circulation. there's change especially in system, circulation to a your opportunity smartphone UC. niche X compared nothing to that was design And is do to because fund we it's play. chip directly with you that mean, anything you or the in I X with billion every a were need and special market take phones limited special that of that, not in that frequency a an Listen, we limited SOS launched there have test, you with day moment that phones device prerequisite where broadband and you do in the

And those relevant. any quarter, year, by as we as solution do that next surprised this. early start satellites become not I reality our believe -- terminal less as launching that next we we're we and all requires believe solutions So special a do become less as

available surprised And it make any billion phone, for it -- chipset to or any proprietary that So order any circulation. phone, by all vision change, -- systems phones X support that chip, everywhere, in the support regarding phone if to anything, or need we're and special to without every these ASIC not any anything it. special our any I is in think

Operator

call over management closing back the At time, remarks. to to I I'm like for turn this further showing no questions. would

Scott Wisniewski

Great. Thank operator. you,

the in a space-based everyone network for your pocket shareholders of use today. to Have research company thank a questions. is I phone joining design evening. broadband for for the great cellular analysts Our both the the want and building

Operator

conference. concludes This today's

this your you may time. at participation. your for You Thank lines disconnect

AST SpaceMobile (ASTS) 14 Nov 232023 Q3 Earnings call transcript