Mynaric — Terminals coming off production line

Mynaric (SCALE: M0Y)

Last close As at 24/06/2024


−2.25 (−7.25%)

Market capitalisation


More on this equity

Research: TMT

Mynaric — Terminals coming off production line

Mynaric’s manufacturing facility has started to produce communications terminals which can transmit data via laser between moving airborne or space platforms at rates similar to conventional optical fibre, but with the light transmitted through free space rather than along a cable. It aims to be the first company to offer laser communications terminals in the volumes and at the price point required by communications systems such as those being developed by Amazon, Telesat and SpaceX.

Analyst avatar placeholder

Written by



Terminals coming off production line


Scale research report - Update

18 May 2020



Market cap


Share price graph

Share details




Deutsche Börse Scale

Shares in issue


Last reported net cash as at end Dec 2019 (excluding €6.7m lease liabilities)


Business description

Mynaric designs and manufactures laser communication terminals and ground stations for airborne and spaceborne networks and applications. Its objective is to become the world’s leading provider of network equipment for the aerospace communication industry using its serially produced and low-cost laser communication products.


Wireless laser technology gives faster data rates than conventional microwave transmission.

Wireless laser technology potentially brings internet connectivity to remote regions without installing fibre optic cable.

Tech is cost effective for mega-constellations.


Technology not proven in complete satellite or airborne communications networks yet.

Rate of commercial roll-out dependent on network operators securing funding.

Limited number of potential network operators to which it can sell equipment.


Anne Margaret Crow

+44 (0)20 3077 5700

Mynaric’s manufacturing facility has started to produce communications terminals which can transmit data via laser between moving airborne or space platforms at rates similar to conventional optical fibre, but with the light transmitted through free space rather than along a cable. It aims to be the first company to offer laser communications terminals in the volumes and at the price point required by communications systems such as those being developed by Amazon, Telesat and SpaceX.

Product available for pathfinder missions and beyond

Mynaric’s growth trajectory appears relatively unaffected by the coronavirus pandemic. It is producing pre-series volumes of airborne terminals which will be used by customers in trials from Q320 onwards. Initial volumes of space terminals are going through the final test and qualification phase, with delivery of the first units to customers scheduled for H220. While details of these customers have not been disclosed, in October 2019 Mynaric announced an initial contract to supply multiple terminals valued at €1.7m for a product validation mission. This was followed in January by a multi-million-euro contract from a different customer to supply terminals for deployment on another product validation mission.

Investment for commercial deliveries

Total operating performance (which includes capitalised development) during FY19 was €7.9m. This was 26% higher than FY18 as development work on space and airborne terminals intensified. Losses after tax were stable year-on-year at €7.8m. Net cash (there is no debt) reduced by €4.0m during FY19 to €8.9m at the year-end. Investment of c €6m in terminal development, and c €2m in production and test equipment for a new, larger facility was offset by €10.4m (net) raised from the issue of shares at €55/share to a lead investor in a Low Earth Orbit (LEO) satellite constellation in March 2019. In February 2020, Mynaric raised another €12.3m (gross) through a substantially oversubscribed private placement at €42.50/share.

Valuation: Analysis of potential revenue

Since Mynaric is not expected to start delivering commercial units until H220 and generate an operating profit until FY21, we present a scenario analysis rather than a peer group comparison of multiples. This analysis shows that a constellation of 100 LEO satellites could require €75m of Mynaric’s terminals and a cluster of 250 airborne communications platforms could require €113m of equipment.

Consensus estimates




































Source: Hauck & Aufhauser and Kepler Cheuvreux. Note: *Restated.

Edison Investment Research provides qualitative research coverage on companies in the Deutsche Börse Scale segment in accordance with section 36 subsection 3 of the General Terms and Conditions of Deutsche Börse AG for the Regulated Unofficial Market (Freiverkehr) on Frankfurter Wertpapierbörse (as of 1 March 2017). Two to three research reports will be produced per year. Research reports do not contain Edison analyst financial forecasts.

FY19 technical and commercial progress

Although Mynaric has transitioned from a technology company delivering one-off prototypes to manufacturing pre-series products suitable for multiple customers, it is still at the stage where technical and commercial progress are more important than financial metrics.

Products available for pathfinder missions and beyond

In October 2019, Mynaric released the first public description of its product portfolio for the commercial laser communications market. At that time, the ground stations for both satellite and stratospheric applications were available. Since then the company has manufactured the initial pre-series volumes of the HAWK AIR airborne terminal, which will be used by customers from Q320 onwards to assess the equipment and refine their requirements. Initial volumes of the CONDOR space terminals are going through the final test and qualification phase, with delivery of the first units to customers scheduled for H220. The ability to supply terminals at the same time as potential customers are launching their initial pathfinder missions positions Mynaric as a key supplier to the mega-constellations of satellites and aerial platforms under development.

Exhibit 1: Product portfolio





Terminal for air operations

Unveiled at Paris Air Show in July 2019. Available now.


Terminal for inter-satellite and satellite-to-ground operations

Details to be disclosed. Will be based on HAWK AIR platform, but tailored to needs of specific mega-constellations. Potentially available by end 2020.


Inter-satellite operations

Preliminary stages of production commenced. Available for launch on-satellite H220.


Ground terminal for satellite operations

Available now.


Ground terminal for air operations

Available now.

Source: Company data

Expanding serial production to meet anticipated demand

In May 2019, Mynaric moved to larger, customised premises just outside Munich. These house a clean room, laboratories, R&D facilities and test equipment to support serial production. This includes a link testbed to simulate launches and the extreme conditions experienced in space. Serial production is critical because it enables Mynaric to meet the cost and volume requirements for mega-constellations. It sets Mynaric apart from the competition since, as far as management is aware, it currently has more CONDOR space terminals and HAWK AIR flight terminals in its production schedule (over 30 units) than have ever been launched by all of its commercial competitors combined. Now that the first HAWK AIR terminals have been completed, the company is refining its production line processes and procedures to ensure it is able to cope with multi-unit demand in future.

First contracts for terminals on satellite pathfinder missions

In October 2019, Mynaric announced that it was going to deliver multiple laser communication flight terminals under an initial contract valued at €1.7m for a product validation mission. This will be the first launch of its complete satellite terminal into space and is scheduled for H220. The name of the customer has not been disclosed. This was followed in January by a multi-million-euro contract from another, also undisclosed, space customer. This second contract is also for terminals for deployment as part of a product validation. These contracts confirm market demand for Mynaric’s cost-effective product for laser communication between satellites in mega-constellations. If these product validation missions are successful, Mynaric could potentially generate substantially more business from these customers.

FY19 financials

Switch from project work to preparing for commercial deliveries

The German accounting metric ‘total operating performance’ is more significant than revenue for Mynaric at its stage of evolution, as it includes the value of the increase in finished goods and work in progress, and the amount of development activity on projects that are not linked to specific customer contracts. The total during FY19 was €7.9m. This was 26% higher than FY18. Moreover, the breakdown is different and demonstrates the switch from project-based work to preparation for commercial sales. FY18 had much higher revenues than FY19 because it benefited from milestone payments on delivery of the first optical ground station. H119 has higher levels of capitalised work than H118, reflecting intensified development work on spaceborne and airborne terminals.

Exhibit 2: Analysis of total operating performance




Sales revenues (€m)



FY18 includes final milestone payments for the first optical ground station that was delivered in the summer.

(Decrease)/increase in finished goods and work-in-progress (€m)



Primarily attributable to optical ground stations and air terminals in production in FY19, optical ground stations only in FY18.

Other own work capitalised (€m)



Cost of development activity on projects that are not linked to customer contracts. FY19 increase reflects pre-production activity.

Other operating income (€m)



Total operating performance (€m)



Source: Company data

Cost of materials was 6% higher than the previous year, with a substantial increase in Q4 as production intensified. Personnel costs rose by 14% year-on-year as the total number of employees increased from an average of 73 during FY18 to an average of 82 during FY19. This reflects the transition to serial production, with additional employees in test, production, logistics, procurement and quality control. Other operating expenses decreased by 11% because of the transition to IFRS 16 in 2019, which no longer treats lease payments on the new building near Munich as operating expenses. Losses after tax were the same as the prior year at €7.8m.

Lead investor in satellite constellations providing finance

Net cash reduced by €4.0m during FY19 to €8.9m (excluding €6.7m IFRS 16 lease liabilities) at the period end. In addition to €7.4m cash consumed in operations, the company invested €6.1m in intangible assets, primarily the capitalised costs of developing the CONDOR and HAWK AIR terminals, and €2.0m in fixed assets, most of which related to production and test equipment for the new facility, which is rented. In March 2019, Mynaric raised c €10.4m (net) through the issue of shares at €55/share to the lead investor of a satellite constellation with which it continues to work on the provision of spaceborne terminals for several satellites forming a demonstration mission. In February 2020, Mynaric raised €12.3m (gross) through a private placement, which was substantially oversubscribed, at €42.50/share. The recent funding is being used to increase production capabilities, to accelerate customer acquisition, particularly in the US, and to secure and strengthen Mynaric’s market position by investing in advanced developments underpinning next-generation technologies.

Outlook: Faster ‘internet-in-the-sky’

Coronavirus pandemic has negligible impact on Mynaric so far

As of early May, when the FY19 report was published, the global COVID-19 pandemic has had a negligible effect on the day-to-day operation of Mynaric. The pandemic does not appear to have had any material impact on potential customers’ plans for launching satellite constellations. If anything, the pandemic has highlighted the importance of providing broadband-quality communications to people across the globe, including those in remote or rural locations where it is not economically practical to provide terrestrial optical communications networks. For these people, provision of broadband via a satellite-based or airborne-based optical communications networks represents a viable alternative. This topic is explored in more detail in a recent interview with Bulent Altan, a member of Mynaric’s executive board and SpaceX veteran.

FY20 goals

Mynaric’s engineering team is spending H120 putting the CONDOR flight terminal for inter-satellite linking through final product testing ahead of delivery to customers later in the year. From Q320 onwards, Mynaric will be supporting customers trialling airborne terminals. In parallel, the company is pursuing additional contracts to deliver terminals for satellite pathfinder missions. Mynaric has begun to develop laser communication solutions that incorporate electronics sourced solely from within the US, which will be attractive for domestic customers, especially those working on government projects. The availability of terminals is timely because of the recent acceleration of activity in the space communications sector. For example, SpaceX has launched 420 satellites out of a total of nearly 12,000 into low earth orbit, Amazon has asked the US Federal Communications Commission to expedite its request to launch over 3,000 communication satellites and the US Space Development Agency has issued a request for proposals for a high-speed government satellite network.


In common with most stocks, Mynaric’s share price has been very volatile this year, falling from €61.8m in early February to €28.3 in mid-March as investors panicked about the impact of COVID-19, then partially recovering as investors realised that not all companies will be significantly affected by the pandemic. At the current level, the share price is similar to what is was a year ago but is still 15% below the €54.0/share price at the IPO in October 2017.

Exhibit 3: Analysis of potential revenues

Internet LEO system

Cost of payload* (€m)





% payload composed of Mynaric systems





Number of satellites in constellation





Revenues attributable to Mynaric (€m)





UAV, aircraft, balloon-based system

Cost of payload (€m)





% payload composed of Mynaric systems





Number of platforms in constellation/cluster





Revenues attributable to Mynaric (€m)





Source: Edison Investment Research. Note: *Payload is the part carrying out the communications or sensing function.

Mynaric is still at the pre-commercial phase and is not expected to generate operating profit until FY21. This limits the value of any analysis based on peer multiples, which do not ascribe any value for the substantial growth that may be realised from the potential deployment of terminals on mega-constellations such as those planned by Amazon and SpaceX. Rather than using a comparison with peer multiples, we continue to present a scenario analysis (Exhibit 3) showing potential revenues achievable if the technology is deployed in communication systems of different sizes. We split the analysis into two types of system. The first looks at communication networks based on smaller LEO satellites, which typically have more than 100 satellites each. The second looks at communication networks based on many more, less expensive platforms, which may be unmanned aerial vehicles (UAVs), aircraft or balloons. A communications satellite has space-qualified terminals, which are more expensive than those on an airborne platform.

General disclaimer and copyright

Any Information, data, analysis and opinions contained in this report do not constitute investment advice by Deutsche Börse AG or the Frankfurter Wertpapierbörse. Any investment decision should be solely based on a securities offering document or another document containing all information required to make such an investment decision, including risk factors. This report has been commissioned by Deutsche Börse AG and prepared and issued by Edison for publication globally.

Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2020 Edison Investment Research Limited (Edison).


Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt


London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

More on Mynaric

View All

Latest from the TMT sector

View All TMT content

Research: Industrials

Leclanché — Shift to build-own-operate model proposed

Initial data on Leclanché’s FY19 performance shows the adverse impact of delays to the St Kitts stationary energy storage project and suspension of cell manufacturing during August which caused deliveries in the e-mobility segment to be delayed. The order book for delivery during FY20 and FY21 exceeds CHF90m, excluding the St Kitts project which management now intends to build under a ‘build-own-operate’ (BOO) model. Our estimates remain under review until there is greater visibility regarding this project.

Continue Reading

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free