Virgin Galactic (SPCE) released its earnings for the first quarter of 2021. For the quarter, the loss for the space company was $ 129.7 million, a significant reduction from the $ 337 million loss at the same time last year. The sales were zero just as they were last quarter. According to data from 2020, Virgin Galactic raised $238 million in the first quarter. The company also held $ 616 million in cash and cash equivalents in its accounts.
Even though the company’s losses were reduced, Virgin Galactic’s stock price fell on May 10, by a whopping 9.19%, to $ 16.30 per share. More than 8% of the shares were decreased in the main trading session.
Management has again refused to disclose a specific date for the SpaceShipTwo test flight. This was originally scheduled to happen on February 13 but was postponed until May this year. Virgin Galactic announced additional checks after diagnostic tests revealed interference in the onboard computer.
During a conference call on May 10, Virgin Galactic’s (SPCE) president of space missions and safety, Mike Moses, said that the test problem was potential wear on the VMS Eve aircraft. A plane lifts the spacecraft to a height of 16 km before releasing it into free gliding. After being built in 2008, the aircraft has been used on 293 flights.
Virgin Galactic was supposed to perform maintenance on the part in question in the fall, Moses said but is now considering whether it should be done now. More information on schedule changes will be provided next week.
In February 2021, Virgin Galactic (SPCE) peaked at $ 59.41 per share, down 24% YTD and 70% from that peak. The company’s decline increased after the company’s chairman, Chamat Palihapitiya, sold a substantial stake. Later, Ark Invest and Richard Branson sold themselves large stakes.