Reported Earlier, Gogo Provides Update On 5G Launch; Says Delay In Its Gogo 5G System Launch, Due To A Design Error In A Non-5G Component Of Its Chip; Expects To Reduce 2023 Revenue By ~$7M And Defer ~$13M In Operating and Capital Expenses In 2023-2024
Portfolio Pulse from Happy Mohamed
Gogo Business Aviation (NASDAQ:GOGO) has announced a delay in the launch of its Gogo 5G system due to a design error in a non-5G component of its chip. The delay is expected to reduce 2023 revenue by approximately $7 million and defer about $13 million in operating and capital expenses from 2023 into 2024. Despite the delay, Gogo remains confident in its 5G product and plans to launch it in mid-2024.
July 28, 2023 | 3:52 pm
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Gogo's 5G launch delay due to a chip design error is expected to reduce its 2023 revenue by $7M and defer $13M in expenses to 2024. However, the company remains confident in its 5G product.
The delay in Gogo's 5G launch due to a design error in a non-5G component of its chip is a negative development for the company. This is expected to reduce its 2023 revenue by $7M and defer $13M in expenses to 2024, which could negatively impact its financial performance and potentially its stock price in the short term. However, the company's confidence in its 5G product and its plans to launch it in mid-2024 could mitigate some of these negative effects.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100