TerreStar Corporation (NASDAQ: TSTR) and its majority-owned subsidiary, TerreStar Networks Inc., announced that its satellite TerreStar-1 (TS-1) has successfully completed Thermal Vacuum (TVAC) and High Power and Passive Intermodulation (PIM) testing of the flight model S-band feed array for its 2 GHz mobile satellite service satellite. TS-1 is now in the final demonstration phase, which will be followed by final assembly and performance testing. TS-1, which is under construction by Space Systems/Loral, Inc (SS/L) in Palo Alto, California, is expected to be the largest and most powerful commercial satellite following its planned launch.
However, the TS-1 reflector, which was in an advanced state of completion, recently sustained damage during manufacturing at Harris Corporation, the reflector subcontractor. The resulting delay in delivery of the reflector will impact TS-1’s flight schedule. In a letter dated June 29, 2008 to SS/L, Harris provided a commitment to complete and ship the reflector to SS/L for integration on TS-1 by March 15, 2009. Based on this commitment, in a letter dated June 29, 2008, SS/L informed TerreStar that it can “confirm that TS-1 will be ready to ship to the launch provider in April 2009.” As a result, TerreStar expects that launch of TS-1 may be postponed from fourth quarter 2008 to second quarter 2009.
TerreStar President Jeffrey Epstein reiterated that TerreStar expects to be internally funded into mid-2009 and said, “We have every expectation that Harris and SS/L will resolve this issue to our satisfaction.” Arianespace, the commercial launch service chosen by TerreStar to launch TS-1, has been made aware of the current situation, and is working with TerreStar to accommodate the new launch schedule. TerreStar will seek approval from the Federal Communications Commission and Industry Canada once the launch schedule is confirmed.
