BROOMFIELD, Colo., July 27,
2023 /PRNewswire/ -- Gogo Business Aviation
(NASDAQ: GOGO) today announced a delay in its Gogo 5G system
launch, due to a design error in a non-5G component of its chip,
which was designed by a third-party subcontractor of its 5G
solution provider.
"We are disappointed in this delay, but remain confident that
Gogo 5G will deliver better performance and better value than
competitive ATG or GEO satellite solutions," said Sergio Aguirre, Gogo's president and chief
operating officer.
Gogo is collaborating with its suppliers on more definitive
plans, but expects to deliver Gogo 5G in approximately mid-year
2024, and in keeping with its culture of transparency with
customers and partners, will provide periodic updates as
warranted.
Gogo has already achieved significant milestones in the launch
of Gogo 5G, including the launch of the Gogo 5G antenna and the
150-site ground-based network in the
United States and Canada.
Gogo continues to take 5G orders and is making headway with major
OEMs to make 5G a line-fit option. Additionally, customers can
pre-provision today with 5G antennas and harnesses, which will
allow operators to quickly install the 5G box once the chip is
available.
Gogo 5G is expected to provide ~25 Mbps on average, with peak
speeds in the 75-80 Mbps range, outperforming any competitive
geosynchronous (GEO) satellite or air-to-ground (ATG) solution. It
has been designed with the goal of delivering high throughput with
very low latency, addressing the increased demand in data-heavy
services and applications in use today, such as video conferencing,
cloud computing and social media, as well as emerging technologies
in the future.
Despite the delay, Gogo remains confident in its ability to
bring to market the first 5G network exclusively for business
aviation. Gogo's suppliers have so far successfully conducted
extensive testing of the 5G components of the chip, and the design
error is not in the 5G block of the chip.
Gogo expects the project to remain on budget, but that the delay
is anticipated to reduce 2023 revenue by approximately $7 million and defer approximately $13 million in operating and capital expense from
2023 into 2024. Gogo plans to share more details during its second
quarter 2023 earnings call 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 customizable suite of smart cabin systems for
highly integrated connectivity, inflight entertainment and voice
solutions. Gogo's products and services are installed on thousands
of business aircraft of all sizes and mission types from turboprops
to the largest global jets, and are utilized by the largest
fractional ownership operators, charter operators, corporate flight
departments and individuals.
As of March 31, 2023, Gogo
reported 3,447 business aircraft flying with Gogo's AVANCE L5 or L3
system installed, 7,046 aircraft flying with its ATG systems
onboard, and 4,458 aircraft with narrowband satellite connectivity
installed. Connect with us at gogoair.com.
Cautionary Note Regarding Forward-Looking
Statements
Certain disclosures in this press release include
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements include, without limitation, statements regarding our
business and financial outlook, capital allocation strategy and
plans and other financial and operating information. When used in
this discussion, the words "anticipate," "assume," "believe,"
"budget," "continue," "could," "estimate," "expect," "intend,"
"may," "plan," "potential," "predict," "project," "should," "will,"
"future" and the negative of these or similar terms and phrases are
intended to identify forward-looking statements in this press
release.
Forward-looking statements reflect our current expectations
regarding future events, results or outcomes, including the impact
of the delays in Gogo 5G and our estimates regarding the
development in Gogo 5G. These expectations may or may not be
realized. Although we believe the expectations reflected in the
forward-looking statements are reasonable, we can give you no
assurance these expectations will prove to have been correct. Some
of these expectations may be based upon assumptions, data or
judgments that prove to be incorrect. Actual events, results and
outcomes may differ materially from our expectations due to a
variety of known and unknown risks, uncertainties and other
factors. Although it is not possible to identify all of these risks
and factors, they include, among others, our ability to develop and
deploy Gogo 5G, Global Broadband or other next generation
technologies, including the expected costs and associates revenues
and the timing thereof; the ability of our subcontractor to remedy
the error in the non-5G component of the chip; our ability to
deliver the expected performance capabilities of any new
technology, including, without limitation, the HDX and FDX
antennas; fluctuations in our operating results; and other events
beyond our control that may result in unexpected adverse operating
results.
Additional information concerning 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, as filed with the Securities and Exchange Commission
on February 28, 2023, and in our
quarterly report on Form 10-Q as filed with the SEC on May 3, 2023.
Any one of these factors or a combination of these factors
could materially affect our financial condition or future results
of operations and could influence whether any forward-looking
statements contained in this report ultimately prove to be
accurate. Our forward-looking statements are not guarantees of
future performance, and you should not place undue reliance on
them. All forward-looking statements speak only as of the date made
and we undertake no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Media Relations
Contact:
|
Investor Relations
Contact:
|
Caroline Bosco
|
William
Davis
|
+1 312-517-6127
|
+1
917-519-6994
|
cbosco@gogoair.com
|
wdavis@gogoair.com
|
View original
content:https://www.prnewswire.com/news-releases/gogo-provides-update-on-5g-launch-301887974.html
SOURCE Gogo Business Aviation