Spacehab, Incorporated (MM) (NASDAQ:SPABD)
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From May 2019 to May 2024
SPACEHAB, Incorporated (NASDAQ:SPABD), a leading provider of commercial
space services, today announced an initiative to align the corporate
structure and personnel toward its strategic direction of winning the
NASA Commercial Orbital Transportation Services (COTS) funded Space Act
Agreement, due to be awarded February 2008, and to process and
manufacture products in microgravity on the International Space Station
(ISS).
“We have determined that the ability to
provide cost effective, reliable cargo services to space is critical to
the overall success of the ISS National Laboratory and to SPACEHAB’s
microgravity processing business plan,” said
SPACEHAB Chief Executive Officer, Thomas B. Pickens III. “The
COTS program represents a big step in the development of a viable
business that will ultimately attract both capital and customers.”
Leveraging the Company’s 23-year heritage of
supporting NASA’s space cargo needs, SPACEHAB
is realigning its current business structure to better serve NASA’s
future logistics needs. “We believe SPACEHAB
is the most credible company that can deliver payloads to the ISS by
2010 as is called for under NASA’s COTS
requirements,” continued Pickens. “In
response to our commitment, we determined that the Company needed to
reposition its personnel and business units to be focused on our COTS
business plan including developing the Advanced Research and
Conventional Technology Utilization Spacecraft (ARCTUS) and processing
microgravity products on the ISS,” he added.
SPACEHAB formed the following four new subsidiaries to advance these
initiatives:
Introducing SPACEHAB Orbital Transportation, Inc.
The SPACEHAB Orbital Transportation (SOT) business is intensely focused
on the design, manufacturing and launch of the ARCTUS vehicle. ARCTUS is
being developed primarily from off-the-shelf, proven hardware and
utilizes existing reliable launch vehicles to provide the least-cost,
least-risk solution for NASA. Additionally, with the planned increase in
crew size expanding from the current three astronauts to a crew of six,
coupled with the planned shuttle retirement in 2010, SOT expects to be a
primary revenue source for the Company through the delivery of complex
cargo and research to the ISS.
Introducing SPACEHAB Microgravity Sciences, Inc.
In April 2007, the Company announced that it had completed its analysis
of the over 2,000 experiments sent to microgravity and as a result, has
selected various life science products to begin producing on the ISS,
now designated as a U.S. National Laboratory. In response to NASA’s
Announcement of Opportunity for ISS utilization issued in August 2007,
SPACEHAB responded with an achievable proposal and awaits the Agency’s
response, expected in early 2008. In parallel to this initiative,
SPACEHAB created a new subsidiary, SPACEHAB Microgravity Sciences (SMS),
to focus on the processing of microgravity products.
SMS flew its first commercial microgravity processing samples on space
shuttle flight STS-116 where they were transferred to the ISS for
processing. The finished products were returned to Earth on the STS-118
mission in November and early analysis has determined a successful
mission. Based on existing and newly-established relationships with the
pharmaceutical and academia sectors, results from these and other
microgravity products are expected to form the foundation of this new
revenue-generating business.
Introducing SPACETECH, Inc.
With the formation of SPACETECH, the Company has designed a technology
transfer, product development, and sales-focused business approach to
transform space-based technologies and products into commercial
applications, useful products, intellectual property (IP), and possible
spin-off businesses. The Company has established a development and sales
process expressly for the commercialization of microgravity products and
products using space-related IP.
Introducing SPACEHAB Engineering Services
SPACEHAB Engineering Services (SES) is a business hybrid of the former
SPACEHAB Government Services and SPACEHAB Flight Services and is
continuing to operate in support of current government and commercial
customers providing specialized design, development and fabrication of
flight hardware, ground systems, and mockups, as well as large scale
program data management.
Additionally, Astrotech Space Operations continues profitable operations
at its Florida and California facilities processing both government and
commercial satellites before launch. The Astrotech business is also
currently expanding its menu of services to support the COTS
integration, ground communication and launch support requirements.
With these business realignments, significant efficiencies have been
achieved resulting in staff reductions of 21 positions and major
reductions in corporate general and administrative expenses estimating
an annual cost savings of $2.5 million, while costing approximately
$81,000 to implement.
“We believe the realignment and efficiency
measures announced today will enable SPACEHAB to make significant
strides in our newly identified business divisions,”
said Pickens. “Through providing these
entrepreneurially-unique capabilities to both an established customer
base and new client sectors, SPACEHAB is committed to leading our
customers, employees and shareholders in a clear and profitable
direction,” he said.
About SPACEHAB, Incorporated
SPACEHAB is a commercial leader and entrepreneurial force in the space
industry providing a full spectrum of products and services to both the
government and private sectors. The Company offers space access and
payload integration services, production of valuable commercial products
in space, spacecraft pre-launch processing facilities and services,
development and extension of space-based products to the consumer
market, and program and engineering support ranging from development and
manufacturing of flight hardware to large scale government project
management.
The statements in this document may contain forward-looking
statements that are made pursuant to the Safe Harbor provisions of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks, trends, and uncertainties that could
cause actual results to be materially different from the forward-looking
statement. These factors include, but are not limited to, continued
government support and funding for key space programs, product
performance and market acceptance of products and services, as well as
other risk factors and business considerations described in the
company's Securities & Exchange Commission filings including the annual
report on Form 10-K. Any forward-looking statements in this document
should be evaluated in light of these important risk factors. The
Company assumes no obligation to update these forward-looking statements.