AST SpaceMobile, Inc. (NASDAQ: ASTS) experienced a notable surge on Wednesday, marking a substantial 23.61% increase and concluding the trading session at $4.66. This positive momentum was instigated by the dissemination of a comprehensive business update.
In its business update for the third quarter, which concluded on September 30, 2023, AST SpaceMobile (ASTS) conveyed significant progress in the production of its initial set of five commercial satellites at its Texas facilities. The company anticipates a launch in the first quarter of 2024, aligning with its goal to commence initial commercial services for mobile network operators and governmental entities in 2024.
During the third quarter, AST SpaceMobile achieved a noteworthy milestone with the completion of its BlueWalker 3 testing program, a pioneering initiative facilitating the first-ever space-based 5G cellular broadband connection directly to a conventional smartphone. ASTS disclosed that BlueWalker 3 once again made history by showcasing its space-based 5G cellular broadband capabilities, enhancing performance to 14 Mbps data rates per 5MHz channel.
As of September 30, 2023, ASTS has fulfilled nearly 85% of its planned capital expenditures. Additionally, the company anticipates a reduction of total and adjusted operating expenses by $10 million to $15 million per quarter starting from Q1 2024. This reduction will be attributed to the completion of Block 1 design and development, substantial progress in ASIC design, and partial completion of Block 2 design, all without any significant alterations to the existing workforce.
The intellectual property (IP) portfolio of AST SpaceMobile has expanded, now encompassing over 3,100 patent and patent pending claims worldwide. AST SpaceMobile is advancing in the documentation process and completing due diligence with various strategic partners. ASTS is intending finalizing the funding agreements in November or December 2023.
In a groundbreaking achievement, AST SpaceMobile recently demonstrated the world’s first 5G connection for voice and data between an unaltered everyday smartphone and a satellite in space. This technological feat involved a call from Maui, Hawaii, USA, to a Vodafone engineer in Madrid, Spain, utilizing AT&T spectrum and AST SpaceMobile’s BlueWalker 3 test satellite.