What happened
Investors weren't particularly eager to take the call from satellite-based telecom service provider AST SpaceMobile (ASTS 1.83%) on Tuesday. They sold out of the company and drove its share price down by almost 1%, following the release of an investor update that included selected preliminary quarterly results.
So what
This morning, AST revealed that it is likely to have ended its second quarter with cash and equivalents of roughly $191.5 million. If so, that would be the second-lowest level for the company in at least the past six quarters; by contrast, the second-quarter 2022 tally was over $202 million.
At least the relatively early-stage company isn't about to run out of cash. It does have a trickle of revenue coming in, and its operating expenses should total $57.1 million to $59.1 million in the quarter, per its estimates.
While none of this was particularly scary or discouraging, it wasn't cause for unbridled optimism, either. Investors will get a clearer picture of the state of their company on Aug. 14 when AST is slated to unveil official second-quarter figures. It will hold a conference call just after market close to discuss the results.
Now what
With a business offering something unique -- cellphone service via satellites, rather than tower relays on terra firma -- AST needs to rope in customers and get some buzz going. If the company can do so, it might prove to be quite an interesting, unique, and ultimately lucrative play in the ever-crowded telecom field.
