A €“ Peter Beck:
— :
Kristy Liwag: Great. Thanks, guys.
Operator: Thank you. The next question comes from Erik Rasmussen of Stifel. Please proceed.
Erik Rasmussen: Yes. Thank you for taking the questions. So first, maybe just on launch. — you sled €“ slaughtered the three in Q1, two additional coming up and looks like your timing is sometime in March. But Adam, you had previously talked about maybe 14 for the year. We had one slip from Q3 to Q4. So I’m assuming maybe that makes the number 15. Is that still a good number for us to be modeling and thinking about as we look at launch.
A €“ Adam Spice: Yes. Erik, I think so. I mean we typically have seen, I mean, it’s a relatively young business, so we don’t have a great amount of track record as far as seasonality is concerned but it does seem like Q1 gets off to a slower start, probably a function of a little bit of a hangover from indications launch ranges being kind of closed at the end of the year. So it takes a while for programs to get respun up. But with the targeted three launches in the first quarter, I think we’re in great shape to get to that 15 number of launch of the year. Demand actually is higher than — would indicate a higher number of launches than 15 this year, but we’ve also learned through the school of hard knocks that we can get burned when we rely really upon what just our customers are telling us what their demands are because customer spacecraft oftentimes seem to slip and push out to the right at the last moment just because of the nature of how these programs develop and when things come through their final qualification and testing.
So we think that we’ve got — we’ve risk adjusted the numbers, so we think 15 is the right number for the year given where we’re at and given the likelihood that some programs could push to the right. But, yeah, time will tell. But right now it feels like the right number.
Erik Rasmussen: Okay. And maybe just adding to that, you’ve mentioned we’re seeing it with the Q1 outlook for launch at $19 million for three launches, but you mentioned that you probably would get back to more of a normalized ASP throughout the year. That’s fair to say, right?
Adam Spice: Absolutely. Yeah. Again we made conscious choice to get that launch off earlier in the year versus just, kind of, take more time to backfill all the volume capacity on the vehicle. So — and right now I mean we have very, very strong visibility and conviction in where the manifest is and we know what the launch prices are for those. So yeah we’re confident where the ASP is migrating back to where it has been and more towards our advertised sticker price.
Erik Rasmussen: Okay. And maybe just my follow-up. On the MBA contract, any milestones that maybe you can call out where are you in terms of building out the manufacturing line and what volumes can you achieve? And then maybe just on the opportunity for launch any updates there? Thank you.
Adam Spice: Yeah. I’ll let Pete — do you want to take a first pass on that?
Peter Beck: Yeah, sure. Yeah, absolutely. Hi, Erik. Things are looking good, so you can see a fully stacked integration facility at the headquarters. So that was completed last year. And that facility is more than capable of processing the 17 million that are on contract and any further that may be options. So no I think we’re in good shape there and we continue discussions for the launch of those particular spacecraft.
