Gogo Business Aviation announced today that the launch of its Gogo 5G system will be delayed due to a design error in a non-5G component in a chip designed by a third-party subcontractor of the company’s 5G solutions provider.
Sergio Aguirre, Gogo’s president and chief operating officer, said: “We are disappointed by this delay, but are confident that Gogo 5G will deliver better performance and better value than competing ATG and GEO satellite solutions. ”.
While Gogo is working with suppliers on more specific plans, Gogo 5G is expected to be available around mid-2024 and, in line with our culture of transparency with our customers and partners, we will update the Gogo 5G on a regular basis as needed. We will provide you with updates.
Gogo has already achieved significant milestones in the launch of Gogo 5G, including the launch of Gogo 5G antennas and a terrestrial network of 150 sites in the United States and Canada. Gogo continues to accept orders for 5G and is working with major OEMs to make 5G a line-compatible option. Additionally, a customer can pre-provision his 5G antenna and harness now, allowing the operator to install his 5G box as soon as the chips are available.
Gogo 5G averages around 25 Mbps, with peak speeds in the 75-80 Mbps range, and is expected to outperform competing geostationary (GEO) satellites and air-to-ground (ATG) solutions. Designed to deliver high throughput with very low latency, it supports today’s data-intensive services and applications such as video conferencing, cloud computing, and social media, as well as tomorrow’s emerging technologies. Respond to increased demand. .
Despite the delays, Gogo remains confident in its ability to bring to market the first 5G network purpose-built for business aviation. Gogo’s supplier has so far successfully tested his 5G components on the chip at scale, and there are no design errors in his 5G block of chips.
Gogo expects the project to stay within budget, but the delays will reduce revenue by approximately $7 million in 2023 and postpone operating and capital expenditures from 2023 to 2024 by approximately $13 million. is expected. Gogo plans to share more details during its second quarter 2023 financial results. I will call you on August 7, 2023.
About GoGo
Gogo is the world’s largest provider of broadband connectivity services for the business aviation market. We offer a suite of customizable smart cabin systems that deliver highly integrated connectivity, in-flight entertainment and audio solutions. Gogo products and services are installed on thousands of business aircraft of all sizes and mission types, from turboprops to the world’s largest jets, and on flights for the largest fractional ownership operators, charter operators, and corporates. Used by departments and individuals.
As of March 31, 2023, Gogo reported 3,447 business aircraft equipped with Gogo’s AVANCE L5 or L3 systems, 7,046 aircraft equipped with ATG systems, and 4,458 aircraft equipped with narrowband satellite connectivity. Did. Visit gogoair.com.
Cautionary Note Regarding Forward-Looking Statements
Certain disclosures in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, our business and financial prospects, our capital allocation strategies and plans, and other financial statements. and operation information. As used in this discussion: “anticipate”, “assume”, “believe”, “budget”, “continue”, “may”, “estimate”, “expect”, The words “intend,” “may,” and “plan” also mean “,” “potential,” “anticipate,” “forecast,” “should,” “will,” “future,” and These negative terms and similar terms and phrases are intended to identify forward-looking statements in this press release.
Forward-looking statements reflect the Company’s current expectations regarding future events, results and outcomes, including the impact of Gogo 5G delays and the Company’s estimates regarding the development of Gogo 5G. These expectations may or may not come true. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that these expectations will prove to be correct. Some of these expectations may be based on assumptions, data or judgments that prove to be incorrect. Actual events, outcomes and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although we cannot identify all of these risks and factors, our ability to develop and deploy Gogo 5G, Global Broadband or other next-generation technologies, including the expected costs and revenues of our affiliates and their timing; Contains). the ability of subcontractors to correct errors in non-5G components of chips; our ability to deliver the expected performance features of any new technologies, including without limitation HDX and FDX antennas; fluctuations in our operating results; and other events beyond our control that may have unanticipated adverse effects.
Additional information regarding these and other factors can be found under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission on February 28, 2023. It is listed in. Our quarterly report on Form 10-Q filed with the SEC on May 3, 2023.
Any of these factors, or any combination of these factors, could materially affect our financial condition and future results of operations, and any forward-looking statements contained in this report may ultimately prove to be accurate. It can affect whether or not there is. You should not place undue reliance on our forward-looking statements as they are not guarantees of future performance. All forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. I am not responsible.
Featured image provided by Gogo Business Aviation
