The expected start of commercial operations by Axelspace Holdings for the fiscal year ending February 2027 has been delayed, resulting in a substantial downward revision to the current fiscal year's revenue forecast. The cause is believed to be a malfunction in the thermal countermeasures for a high-performance power amplifier, with the impact expected to extend to the operating plans for 3 fiscal years.
In the interim results for the period from June to August, part of the cost of sales was recorded as an extraordinary loss, and current fiscal year's revenue fell from ¥9 billion to ¥6.7 billion. The operating loss widened from ¥800 million to ¥2.3 billion, the ordinary loss from ¥150 million to ¥1.7 billion, and the net loss from ¥240 million to ¥3.65 billion.
The cause is said to be that heat from the power amplifier for high-speed communications was not sufficiently dissipated, causing internal components to malfunction. The company is proceeding with the retrieval and inspection of satellites incorporating the same design. Low-speed communications were operated using a different amplifier, but the high-speed communications equipment design is considered likely to have had issues.
The company indicated a policy of delaying the start of commercial operations for satellites carrying 3 units of the same design until February 2027, and expects the recovery of revenue and profit in the current fiscal year to take time. It also plans to establish an advisory board to conduct verification by external experts, with the final report expected in approximately 1.5 months.
The revenue outlook for the Axeliner business, including the contract with Pale Blue, conservatively reflects the potential impact as consideration of terminating the contract proceeds. Insurance coverage is also expected not to apply to the current malfunction. The company said it would provide a different response at this time regarding the individual impact of projects related to the Ministry of Defense.