Good day, ladies and gentlemen, and welcome to Redwire’s First Quarter 2022 Earnings Conference Call. My name is Kyle, and I’ll be your operator for today. As a reminder, this call is being recorded. I would now like to introduce your host for today’s conference call, Michael Shannon, Treasurer and Head of Investor Relations. Mr. Shannon, you may begin your conference.

Thank you. And welcome to Redwire’s first quarter 2022 earnings conference call. I’m here today with Peter Cannito, Redwire’s Chairman and CEO; Andrew Rush, Redwire’s President and COO; and Bill Read, Redwire’s CFO. I will begin by referring you to the Safe Harbor disclaimer in our earnings press release, which is posted to the Investor Relations section of the website. During today’s call, we will make certain forward-looking statements. These statements are based on current expectations and assumptions and as a result, are subject to risks and uncertainties. Many factors could cause actual events to differ materially from the forward-looking statements made on this call. For more information about these risks and uncertainties, please refer to the press release issued today. Readers are cautioned not to put undue reliance on forward-looking statements, and Redwire specifically disclaims any obligation to update or revise any forward-looking statements that may be discussed during this call. During this call, we will also refer to both GAAP and non-GAAP financial measures. You could find definitions and reconciliations of our GAAP to non-GAAP measures included in our press release. And lastly, this call is also being webcast with a supporting presentation and a replaying copy of the presentation will be available on our website for two weeks. With that, I’d like to turn the call over to Peter Cannito.

Thanks, Mike. And thank you everyone for joining the call today. Today, we will be discussing our key business accomplishments for the first quarter of 2022. Before moving to the slides, I wanted to highlight that our goal here at Redwire is to deliver the foundational technologies for the present and future of space infrastructure. To do this, we are focused on continuously improving and scaling our products and solutions for our customers. Redwire solutions range from innovative payloads to digital engineering, solar arrays, key navigation and communications components, and In-Space Servicing, Assembly and Manufacturing. Our technology is enabling new space missions that support partners like NASA, the U.S. Space Force, the Intelligence Community and commercial customers. I would also like to flag for everyone on the call that we posted our glossy annual report wrap with many projects we are proud to have accomplished in the last year. Many of the images you will see in the annual report and throughout this presentation are actual images of real Redwire capability deployed today. Please take some time to read the letter and look through the report. We have a bold vision, but this is not science fiction. Many of these programs are being executed in the present day. As I highlight our results, please follow along, starting on slide 7 of the presentation, that we have posted with our earnings release today. In the first quarter, we continued to execute on our long-term strategy with some critical business and technical milestones. There are strong demand signals coming from customers in key areas, where Redwire is an industry leader such as In-Space Servicing, Assembly and Manufacturing, also known as ISAM; more on that in a few moments. We are also seeing strong continuing demand for our patented Roll-Out Solar Arrays or ROSAs, which, as we have already highlighted, the first pair was installed on the ISS last June. This is an example of how a critical win and proven performance with a breakthrough technology like ROSA can lead to much larger opportunities. As such, we recently delivered ROSA wings 3 and 4 to the customer and anticipate growing orders for ROSA from current and new customers in the future. Another example of how proven performance on a key opportunity can lead to larger orders is our Link-16 antenna developed for national security missions. Building on our recent success demonstrating our Link-16 antennas, Redwire has been contracted to deliver multiple high gain antenna systems for a national security space LEO satellite constellation. Proven performance on orbit is leading to larger opportunities as new constellations and other large programs move into full rate production. This is how we will scale. To meet the anticipated demand, we are leaning forward and have increased investment in business development, R&D and corporate infrastructure to build a strong foundation for near-term growth and profitability. Of course, this has a cost impact as well. But it is critical to growing revenue and market share and that is where we are focused. The first quarter performance was slightly below our expectations due to delays in contract awards and supply chain issues impacting subcontractor order fulfillment, and we have experienced some volatility associated with orders from emerging commercial space contracts. However, our revenue profile is such that a shift of a key milestone, large new order or sizable subcontract delivery can materially change the timing of our revenues throughout the year. Despite near-term shifts and delays that impacted the size of this year’s first quarter revenue, we have confidence in our 2022 forecast range and expect sales to be more heavily weighted towards the back half of the year. We saw the same pattern in last year’s revenue profile as well. Moving on to slide 8. As I previously mentioned, the demand signals for the space market remain strong. The national security sector is seeing strong demand driven by 26% growth in the Space Force budget. The tragic Russian invasion of Ukraine has highlighted the criticality of space assets during conflict and underscores the need for resilient space architecture. Many Redwire capabilities are critical for tactical communications, remote sensing, tactically responsive space, modeling, simulation, and training and other national security priorities. We are continuing to invest in growing our national security capabilities and have unique security infrastructure and contracts that will enable us to effectively support this customer. Moving to civil space. Despite delays caused by the continuing resolution, this segment is very stable and growing. The approved NASA budget has grown 8% and we are now seeing increased investment in the Artemis program including the recent announcement of a second human landing system. Civil space is an important component of Redwire’s revenue. Our legacy of delivering for NASA provides us a stable foundation and the staying power to deliver for exciting new space missions, regardless of economic conditions. For example, we recently delivered the camera controller, wireless antennas and cable harnesses for the Artemis III Orion Camera System, and an array of inspection and navigation cameras developed for NASA’s Orion Spacecraft. This is a segment which is foundational to our pipeline throughout FY 2022 and FY 2023. And this past Tuesday, we were pleased to host a visit from NASA Administrator Bill Nelson at our headquarters in Jacksonville, Florida. Lastly, the emerging commercial space segment has tremendous growth potential over the next 5 to 10 years that could far outpace the other segments in annual growth rates. However, recent developments in the macro environment have created near-term volatility and some companies are having difficulty raising the capital required to support their growth objectives. Since Redwire provides foundational technologies to many of these commercial providers, changes in their forecast or deliveries can have a direct impact on our forecast as well. Regardless, we still see incredible potential from this segment over the long-term and as the other two segments rely heavily on a vibrant commercial space sector. The long-term growth trajectory for this segment is easier to predict than the timing. Slide 9. I’d like to take a moment to focus on a specific demand signal in the government segment that is very positive for Redwire. The White House has recently released an interagency In-Space Servicing, Assembly and Manufacturing national strategy. This ISAM national strategy is very exciting news for Redwire. As you all know, Redwire is uniquely positioned as a first mover and technical leader in the area of In-Space Servicing, Assembly and Manufacturing. And this provides additional validation and momentum to our business plan. One key change is that this area used to be referred to by our customers in the industry as OSAM or On-Orbit Servicing, Assembly and Manufacturing. But this strategy broadens the focus from on-orbit to in-space to underscore that the opportunity is much greater than just in earth orbit, but rather extends into all areas of space, such as cislunar, lunar and interplanetary space. The White House ISAM strategy provides strategic goals for the agencies under the executive branch to advance ISAM capability development discussed in the United States based priorities framework. It underscores the nation’s commitment to the critical ISAM technologies that Redwire has been developing, like 3D printing in space and our ISAM program Archinaut, which will demonstrate the first satellite to use ISAM to manufacture and assemble key components once on orbit, as well as our lunar regolith 3D printer that won the 2021 Popular Science Award for Innovation and is critical to developing a sustained human presence on the moon. This is a very positive development for Redwire as this strategy should increase the number of acquisitions for ISAM capability. Moving to slide 10. As I mentioned in the intro, a critical win and proven performance with a breakthrough technology can lead to much larger opportunities. This is how Redwire will scale. We saw numerous examples of this starting to bear fruit in the first quarter. I already mentioned how the success of our ROSA wings on the ISS has led to more orders and the success of our Link-16 antenna led to a procurement for many more on a national security constellation. But there are other examples across the company as well to include large orders of our navigation components, and digital engineering software that could lead to longer term, large scale procurement. As a critical supplier to the space industry across all three segments, we are planting the seeds of future growth by having our solutions base-lined on programs with significant growth potential and large production tails. This ties right into slide 11. In order to capitalize on these growth opportunities, we are leaning forward on our investments in business development, R&D, and capital expenditures. We have increased our spending over 70% in each category to ensure we have the business development resources to capture new opportunities and the facilities and production capabilities needed to scale with our customers. Although these numbers have a cost impact in the near-term, they will normalize with scale when the subsequent growth from these investments will result in better operating leverage. And as you can see on slide 12, business development and R&D activity is essential in order for Redwire to compete effectively and support the number of bids in our pipeline. Our backlog was $274 million as of March 31, 2022, consistent with the previous quarter. But, we are now seeing several high-probability bids that should lead to contract wins, which will be highlighted in future quarters. There are over $546 million in bids that Redwire has submitted to our customers that are awaiting decisions. A few examples of the size and types of bids we have submitted are highlighted on this slide. Moving on to slide 13, the final slide in my section, I’d like to highlight Redwire’s current positioning as we continue to execute on our plan for the remainder of 2022. As I just highlighted, Redwire has increased our investments to fuel growth and to achieve higher revenue and higher profitability as we gain operating leverage. The demand signals are strong in all three segments of the market and we are leaning forward to prioritize revenue growth. As Bill will cover in more detail in his section, we currently have access to sufficient capital to execute on our growth plan. This is critical as we are starting to see some potential for rocky roads ahead for the larger economy. We believe that when you combine our access to sufficient capital with our already existing strong backlog of business and long-term history with stable government customers like NASA, the DoD, and intelligence customers, we have the staying power and financial resilience to endure uncertain macroeconomic conditions, should they occur. In fact, this may lead to new opportunities as we anticipate an increase in potential accretive M&A as smaller companies see the benefit of joining a larger, more diversified platform. Regardless of the impact of the broader U.S. and global economy, however, we still see significant demand for the space industry. Expanding government investments from NASA and the defense and intelligence community are key elements in our growth strategy. Penetration on large, multi-year programs with production potential should lead to more rapid scaling in later phases and we look forward to providing our customers innovative solutions for these and other important missions. We continue to have confidence in our forecast for 2022 and expect sales to be more heavily weighted toward the back half of the year as key procurements work their way through the acquisition system. With that, I will now turn the call over to Andrew to outline some of our specific technical achievements and key programs.

Thanks, Pete. I’d like to walk through some of our many operational highlights and give you updates on successes in quarter one. Looking at slide 14, I’d like to think of this chart as our today and tomorrow slide, as you look at both missions that we are flying today and the future of space commercialization. You can see many missions that Redwire has enabled with our 50-plus years of flight heritage and over 200 space flight missions. This slide also highlights the industrialization and commercialization of space, specifically next generation observatories, remote sensing systems, human habitats around and on the moon, permanent outposts on Mars and more. Just as Redwire supports the missions of today, we also are working to enable the missions of tomorrow and deliver on the future of space commercialization. Our strategic focus areas of In-Space Servicing, Assembly and Manufacturing, low-earth orbit commercialization, advanced sensors and components, space domain awareness, and digitally engineered spacecraft, support national security, commercial and exploration missions today, and provide capabilities that will enable this second golden age of space that you see here. Now, to get into the details of the progress that we’ve made this quarter, let’s turn to slide 15. Here are highlights of several updates I’ll get into in detail in a moment. As Pete alluded to, we’re delivering multiple products and services for national security and commercial satellite constellation, as well as multiyear, multi-ships missions. Penetration of these constellations and larger missions provides growth and long-term upside for us. Solar arrays and deployable solutions are very important part of our company. We’re excited to report that we’ve delivered the third and fourth wings for installation on the International Space Station and are set to dramatically increase the number of solar array wings that we deliver this year. Redwire products and services continue to be successfully deployed at a high cadence. Thus far, our hardware has been deployed on four missions this year and continues to operate on the International Space Station. We also recently were selected as a provider on the Air Force’s $950 million Advanced Battle Management System IDIQ. This builds on work we’re doing for other customers, which I’ll get into in a moment. If you look at the middle of the page at that satellite icon, I’m proud to provide updates on our progress with our Archinaut One mission, which recently carried out its mission CDR, a major milestone on the way to demonstration and adoption of our in-space manufacturing and assembly of satellites technology. Finally, Redwire has leaned forward and made investments necessary to increase production capacity for many of our high-growth potential product lines, including solar arrays, robotic capabilities, and RF antenna production. Turning to slide 16, we'll begin with our solar array product lines. We are constructing six wings intended for installation on the International Space Station to enhance its power generation. The first two wings were installed last year and are meeting or exceeding their performance targets. In the first quarter of 2022, we successfully delivered wings 3 and 4, with wing 4 actually arriving ahead of schedule, marking a significant operational achievement for us at Redwire. We are currently producing wings 5 and 6 and are on track for timely delivery as per our schedule. The effective functioning of our Roll-Out Solar Array technology on the International Space Station and other missions such as DART reaffirms our commitment to quality and instills confidence in our customers regarding our power generation services. Moving on to slide 17, let's discuss the future of our solar array product line. We expect our solar array wing deliveries to triple in 2022, driven by our existing backlog and ongoing pursuits, which encompass various constellation orders, ranging from small satellites to large solar arrays. In the first quarter, we encountered some challenges with subcontractor performance that affected our financial results, including delays from subcontractors and the finalization of contracts. We anticipate resolving these delays in the second and third quarters while maintaining our delivery goals for the year. We are also taking proactive steps to enhance our supply chain by broadening our vendor network and forming strategic partnerships with reliable vendors. Our solar array product line remains robust despite the short-term challenges. Moving to slide 18, we have achieved several successful deployments in the first quarter, which include four separate satellite launches on GOES-T, a commercial satellite that utilized SpaceX’s Transporter-4, along with hardware sent to the International Space Station via NG-17 and Crew-4. Redwire’s hardware and services will continue to be utilized throughout 2022 and beyond. Now, let’s proceed to slide 19 to discuss the growth of our modeling and simulation capabilities and services. We were awarded a place on the $950 million IDIQ contract to support the U.S. Air Force’s Advanced Battle Management System. We are enhancing our capacity to support national security through our state-of-the-art modeling and simulation technologies and systems engineering. The work under this IDIQ will resemble the services we currently provide to other government and commercial clients. Turning to slide 20, I will update you on our in-space manufacturing and assembly of satellites technology demonstration mission, known as Archinaut One or OSAM-2. This technology represents the first demonstration of a satellite's ability to manufacture and assemble itself, marking a significant shift in satellite design, manufacture, and operation, and it is disruptive to the $20 billion satellite manufacturing market. We have recently completed our major critical design review for the OSAM-2 mission, which allows us to proceed with construction, testing, and deployment. In the first quarter, we faced some delays and additional work from subcontractors on this program, which affected our schedule. Such delays are not uncommon for a first-of-its-kind technology demonstration like OSAM-2. The announcement from the White House regarding a national ISAM strategy to promote this technology has validated Redwire’s leadership and the long-term potential of in-space manufacturing and assembly of satellites, providing significant support for its adoption. We are observing increased interest in this technology, which reaffirms its long-term potential, despite the delays and challenges we encountered in the first quarter. Turning now to slide 21. Let’s talk about the investments that we have made in infrastructure to support production capacity at Redwire. We’re building out an additional 70,000 square feet of design, development and production space to enable us to deliver on our existing backlog and pipeline. We’re focusing on the future by making this investment by heavily investing in our facilities to support building more solar arrays, a wider range of solar arrays, increased robotic capabilities, and increased RF antenna production. Of note in this build out is a production facility that has a 35-foot high bay, which will enable us to build the largest solar arrays that have yet been deployed on the NASA Gateway, Power and Propulsion Element program. This production capacity also sets us up for success in production and delivery for major multi-shipset, multiyear program and satellite constellations. With those updates, I’d like to turn it over to Bill Read, our CFO. Thanks.

Thank you, Andrew. As Pete and Andrew noted, we started 2022 off with several important customer deliveries and key program wins. Our backlog is healthy and our pipeline of new business continues to be very strong. Our total backlog, including both contracted and un-contracted backlog grew from $272 million at the end of ‘21 to $274 million as of March 31, 2022. Contracted backlog at the end of the period was $137 million and our selected backlog along with add-ons to existing contracts also stands at $137 million. Contracted backlog represents firm contract commitments we have received, and the remaining backlog includes contracts in the process of award, as well as contract extensions that have been verbally awarded, priced, fully scoped and are expected to be executed. As we indicated in our previous update, the long delay in the approval of the U.S. Federal Government’s budget and the resulting continuing resolutions negatively impacted both the timing of contract awards and the length of time required to get programs under contract. Additionally, the continuing impact of COVID including, the Omicron variant in the fourth quarter of 2021 and continuing into Q1 impacted contract awards, negatively impacted supply chains and caused subcontractor performance delays. As a result, revenues from several programs moved to later in the year. GAAP revenue for the first quarter was $32.9 million, an increase of $1.2 million or 4% from the prior year driven by $3.7 million in revenue contributed by our 2021 acquisitions and the timing of product deliveries in our deployables and engineering services businesses. On a pro forma basis, revenues are down $5.2 million or 14% due to several large subcontract activities in Q1 of ‘21 that were not repeated in this quarter and macroeconomic challenges, including inflation and supply chain pressures. We see significant variability in the timing of revenue on many of our programs based on the relevant activity on the program from one period to the next. Because of this inherent variability in the nature of our programs, we expect to see long-term growth over time while I’m not necessarily expecting continuous quarter-to-quarter growth. Cost of sales for the quarter increased $3.7 million to $27.7 million. As mentioned, we experienced significant delays in getting programs under contract, which created labor inefficiencies in several of our facilities. In addition, we experienced supply chain challenges, inflationary pressure, increased material and subcontractor costs and delays in subcontractor performance. Cost of sales, as a percentage of net revenue was 84%, compared with 76% for the same period in the prior year. Gross margin declined $2.3 million to $5.2 million in the first quarter. The decline in margin is driven by the previously mentioned cost impacts, as well as increases in program estimates, especially in our in-space servicing and manufacturing related programs. Several of our programs are one-of-a-kind development activities. Therefore, it is not unusual to have adjustments to program estimates over time as the related engineering challenges are better understood. SG&A expenses for the year increased $9.7 million to $20.9 million for the quarter. The increase versus Q1 of '21 is due to several new costs associated with being a public company and some one-time expenses. SG&A for Q1 of '22 as compared to Q1 of '21 includes one-time costs related to the recently concluded independent investigation of $2.3 million, higher business development spending of $1.5 million, new non-cash charges for stock-based compensation expense of $4.4 million, increases in the insurance cost of $1 million, investments in our new ERP system rollout, and higher fees and expenses related to being a public company. In Q1, we started a global conversion to a single ERP solution for all of our sites. The conversion is expected to take approximately two years to complete and is expected to drive synergies across sites and help create significant efficiency gains. Interest expense for the quarter was $1.5 million which is comparable to the same period last year. For the first quarter of 2022, GAAP net loss was $17.3 million. When taking into consideration unusual costs associated with investigation costs, non-cash stock-based compensation, non-cash changes in warrant liabilities, capital market fees, ERP conversion-related expenses, and other costs related to becoming public, adjusted EBITDA was a loss of $4.7 million, compared to a gain in the first quarter of ‘21 of $1 million. We are reaffirming our guidance for full year revenue and adjusted EBITDA. As Pete mentioned, revenue in the first quarter was lower than revenue expected in future quarters and relative to the full year. We have confidence in our forecast range and expect sales to be more heavily weighted toward the back half of the year. The combination of our existing backlog and a strong near-term pipeline gives us confidence in an increasing revenue profile for the remaining quarters of the year. As mentioned, this higher volume is expected to generate significant operational efficiencies and leverage increasing profits and return Redwire to positive operating cash flows. As a result, management’s reaffirming previous guidance for full year 2022 revenue of between $165 million to $195 million and full year adjusted EBITDA to be between $8 million and $15 million. To reiterate, Redwire is seeing very strong market demand for our products and services across all of our market segments. We have invested and are continuing to invest heavily in public company infrastructure, business development and R&D to drive growth and position us to drive operational efficiencies and leverage profitability as our revenue grows. With recently executed actions, we are confident that the Company has sufficient resources to execute on our initiatives and fuel ongoing growth. We ended the quarter with $30.9 million in available liquidity comprised of $5.9 million of cash and cash equivalents, and $25 million in available borrowings on existing credit facilities. Recently, Redwire secured an increase to our revolving credit facility with Adams Street Partners from $5 million to $25 million. With this increase in revolver capacity and our strong backlog of business, we believe our existing sources of liquidity are sufficient to meet our operational and working capital needs for the foreseeable future. In April, the Company entered into a Committed Equity Facility with B. Riley, which provides the Company the opportunity, but not the obligation to sell up $80 million in equity to fuel future accretive growth. And now, I’d like to hand it back over to Pete for his closing comments before our Q&A session.

As you can see, we expect to continue our strong momentum throughout 2022, and Redwire is building a solid foundation as a key mission enabler and pure play space company with scale. Thank you all for your time today. I will now turn the call back over to our operator to open it up for Q&A.

Our first question is from Greg Konrad with Jefferies. Please proceed with your question.

Maybe just to start. I appreciate the near-term headwinds around supply chain, the budget, COVID, and the second half-weighted outlook. But can you maybe just talk about what was contemplated when you initially gave the ‘22 outlook and confidence in those headwinds lifting, and then maybe puts in takes towards the lower end of revenue guidance versus maybe what needs to happen or accelerate to get closer towards the upper end?

Yes. Hello Greg, I'm doing well, thank you for your question. This is Pete. To address the second part of your question first, examining our backlog in conjunction with the bids we've submitted shows that our performance in the second half will heavily rely on executing that backlog. Additionally, the win rate and the size of the bids we successfully convert into backlog will influence our results. We currently have $547 million in bids, many of which have been under review for some time, and the timing of those awards will determine whether we end up at the lower or upper end of our forecast. Now, regarding the supply chain challenges, I’ll hand it over to Andrew Rush, our President and COO, to discuss this further.

Thanks for the question, Greg. As we discussed in the prepared portion of the call, we have faced subcontractor performance issues that we did not anticipate going into Q1 in addition to delays in definitization of contracts with subcontractors. We have seen our subcontractors watching inflation like everybody else and pushing for higher prices in response to those concerns. We anticipate in the latter portions of this year resolving the subcontractor delays, resolving the definitization issues, while striving to maintain our gross margins in light of the inflationary pressures that we are experiencing.

And then just thinking on the expense side, you called inflation, higher bid and proposal, and internal R&D, and at least on the latter two I would say, that’s maybe a little bit more predictable, or at least within plan. Just as it relates to inflation, how do you think about the pricing or ability to offset or maybe just contract structure and kind of the impact when you just think about profitability going forward?

It’s a great question and it’s one that we pay a lot of attention to, because we are bidding on multiyear programs here, and it’s something we have to think about constantly and look ahead of. I think it just reemphasizes for us the importance of making sure that we’ve got those good relationships with our subcontractors, and when we lock in their pricing at the time of the bid and proposal, so we’re not getting squeezed in between later in the program.

To conclude, we engage in various types of contracts where costs related to inflation are passed on to our ultimate customer. While we have had some pricing secured for a while, which minimizes our inflation exposure, we don't secure every single price at the start of a program. This means we do face some effects from inflation. Looking ahead, we are actively negotiating to keep our cost increases low in order to provide excellent value to our customers and shareholders.

I appreciate the insights on the emerging commercial space and how you categorized those opportunities. I recognize the significant growth potential and acceleration in this area. Can you provide some clarity on what this means for Redwire so far, in terms of opportunities captured versus what is still ahead? You mentioned that it could impact Redwire’s forecast. Are there any specific examples or thoughts regarding this year’s guidance? Have any of those programs been delayed, or is it just a matter of when we expect these future opportunities to emerge?

Yes. I think the point really was just to highlight the difficulty in predicting the timing. So, one of the interesting things about Redwire and one of the key benefits that we have is as demand is strong across the industry, as a key mission partner and a supplier, we benefit from that. But in a sector like the commercial space part of the market, if for instance, they don’t get the amount of funding that they anticipated and then end up revising down their forecasts, as a result that can have an impact on our forecasts, or if they run into regulatory issues and that slows down the timing of their forecast, us as a critical supplier to many of these commercial space companies, that can affect the timing. So, I think overall, the point that we are just trying to highlight is the potential is tremendous, and we see the demand signals as really strong, but it’s very easy for a key order to move from one quarter to the next, based on some sort of unanticipated change in the forecast of some of our commercial customers.

And then just last one for me, I mean, one area that maybe you were a little bit more definitive in. I mean, you called out solar array deliveries expected to triple in 2022. I mean, can you maybe talk about this product area a little bit? And what does that mean for revenues? I mean, are revenues tripling? How important is that of a product category for total finances? Or just any more color you can give on that would be helpful.

Yes, our solar array product lines, along with our deployable solutions such as antennas and structures, are rapidly growing. Our Roll-Out Solar Array technology became operational last year, and we are seeing increasing interest from customers who are incorporating it into their future opportunities and active programs. This technology establishes strong customer relationships, particularly when integrated into satellite buses that can be utilized across various missions. Additionally, we have solar arrays designed for smaller satellites in low Earth orbit, which are optimized for constellations and multi-shipset systems. The sales and customer interest in these products are robust, enabling us to offer multiple components and products to our clients. This is positively affecting our bids and opportunities in other areas, such as cameras and navigation components. We anticipate this segment will continue to be a substantial growth driver for us, with increasing customer adoption and more satellite design missions coming online, further boosting our sales.

Yes. I’d like to jump in on that. Because right now Redwire is the only company out there that has a Roll-Out Solar Array with flight heritage. And for that reason, you can see that the successful deployment of that has led to more orders. And that’s really critical to understanding how we’re going to scale. We wanted to deploy it on the International Space Station. And that success and the success of the DART program gives the customer confidence in using a ROSA for the Lunar Gateway, which then has also sparked additional interest from a number of different customers who want to take advantage of that unique capability of which it is the only demonstrated version of that unique capability that has any flight heritage with it. So, that gives us the ability to scale, as there’s more and more demand for that product line. And that product line in particular is a very high end, high revenue driving product for us.

Our next question is from Mike Vermut with Newland Capital. Please proceed with your question.

I got a couple of questions here for you. I guess, the first one is, I guess, when we first went public, the initial slide decks gave a long-term project trajectory for us. First of all, has anything changed on that? Has it gotten bigger? You've become more worried about that? And the way I’ve always looked at it, if we come even close to any of those numbers, this is going to be a phenomenal company. But on that, can you discuss the national security opportunity out there? I know this is developing and it’s moving really quick, and the size and scope of that has grown dramatically. And also some of your larger constellation programs, the size of this, and how the tails work on these? Once we land these contracts, how that gives you confidence in growing into those kind of original goals that you set for us over the next two, three, four, or five years?

Yes, that's a great question. The national security sector is experiencing significant growth, particularly in light of the unfortunate events surrounding the Russian invasion of Ukraine, which has highlighted the critical role of space in our national defense. This is reflected in the increasing budgets for national security. Redwire is well-positioned to take advantage of these budgets, as we possess the necessary contracts, clearances, and security infrastructure to undertake national security projects. This gives us a strong advantage in meeting the demands of these expanding budgets. We view this sector as a rapidly growing market, and we have the capability to engage in it. To scale our efforts, we are strategically planting seeds across various initiatives. Historically, being involved early in a national security program has led to stable long-term revenues, as such programs typically remain unchanged once established. This principle applies to all sectors we operate in. We are excited about the diversity within our pipeline, as we are making significant investments in emerging constellations. Recently, we announced our collaboration with PlanetiQ, and as their constellation expands, we will grow alongside it. The success we’ve had with the Link-16 antenna, which has gained flight heritage and been demonstrated, has already led to procurement opportunities for larger national security constellations. As these constellations develop, we expect to see growth alongside similar communication programs. What you’re witnessing is our early efforts in establishing numerous initiatives that are likely to yield substantial production opportunities in the future.

Excellent. Another question, you mentioned having around $550 million in bids out there, which is approximately the figure.

Yes, $547 million.

What’s the historical win rate that you would get from that? I’m not holding you to anything, but what’s normal for us historically?

Yes. Well, it’s difficult to predict, specifically to that $547 million, so. And, unfortunately, because of the way that Redwire came together, we don’t have good historical data. So, I wouldn’t hazard a guess. But when you look at the $273 million in backlog and the $547 million in bids submitted, you could run some sensitivity analysis against that and see where that kind of shakes out in terms of our overall forecast.

Going back to the question before, you had in that initial slide deck, I guess, nine months ago or so, you kind of had a great trajectory over the next five or six years. Is there anything that’s changed to that? Granted, we can push it. It’s very common, what happened to you guys in this first quarter. So, in the longer run, is there anything that says, oh, you can’t get to $1 billion in revenues in five, six years, or in your mind has any changes to become greater the opportunity out there, less, more uncertain? Can you just go into that?

I think that with the rapidly changing economic conditions, the uncertainty has gone up. We’re not actually tracking too far off relative to the market that we’re in, comparatively. So, I think if we were to say that anything has changed, it’s a little bit of uncertainty about the timing, like I talked about as a lot of the commercial space companies in our sector, that we are a supplier to change their forecast over time. I mean, you have to kind of think in some regards of Redwire as being a reflection of the combination of the growth rate and the national security, civil, and commercial markets; we see national security as being a really high growth area for us. And we see a lot of the stability regardless of the future economic conditions. We see that as very predictable coming from NASA and slightly up. But, the fact of the matter is, if the commercial space segment does not deliver on their forecasts, in line with the projections that were pervasive this time last year, that adds uncertainty to our forecasts over the next five years as well.

Understood. The figure mentioned was $1.2 billion. If it drops to $800 million, the numbers are substantial considering we currently have a $200 million market cap. It’s not my main point, but nothing has changed significantly. Even if we could reach $800 million in five or six years, that would be positive. Overall, nothing has shifted dramatically.

Yes, I appreciate your comments, Mike. I want to emphasize the significant demand signals we are observing. The current situation and the demand for ISAM indicate that there is a national strategy in place. As long as this policy supports large acquisitions and procurements, Redwire will have substantial opportunities. With the continued growth of national security budgets, we will keep seeing these prospects. The commercial sector, however, is somewhat more susceptible to economic fluctuations and capital market conditions, which can impact the ability of many new space companies to achieve their objectives amid regulatory challenges and supply chain issues. Nonetheless, the demand for space remains robust and promising, just as it was previously.

Excellent. One last question, and this isn’t anything specific. I mean, Amazon is developing its internet satellites project, is it Kuiper? I forgot what it’s called exactly. But there are a lot of projects out there along those lines, and I’m not specifically referring to this one. Are we going to be involved in areas like this? I’m not referring to this particular project because I know you haven’t announced anything yet or may not be able to. But are there similar opportunities out there that we are bidding on?

I can’t comment on the specifics of any particular bid or program, but what I can say is that every time a constellation is launched, it presents an opportunity for Redwire. Each constellation offers us the chance to engage, collaborate, and prepare our foundation. We have a broad range of technologies and products, which is one of Redwire's strengths. Even if one specific product line doesn’t engage with a certain constellation, we have multiple offerings for each constellation because we can provide various products and services. We are currently involved with both commercial and national security constellations, and our extensive experience enhances our ability to deliver value to those launching constellations.

And then, last item, this is just a kind of a statement is that we’ve been buying stock all the way down here. I know you guys have had been at blackout period for a long time. I would hope that we’re at $3.70 at close today. Is that management, the Board, and possibly our backers would all make a significant statement and purchase stock when the window opens? I hope that you guys look at it and it’s not me saying it that this is probably the best thing you could do with your money right now at a $200 million valuation. So, that’s the opportunity that I see out there. And these hiccups happen. This has been a tough market for everybody. So, hopefully, we’ve seen the bottom here.

Yes. We definitely believe in the long-term value of our stock that I think.

Our next question is from Griffin Boss with B. Riley Securities. Please proceed with your question.

Hi. Thanks for taking my question. Most of them have been answered already, but I do have a couple of quick ones here. Regarding the $950 million IDIQ for the Air Force ABMS, I was curious what role Redwire has on that contract and who you were or are competing against for that.

Yes, thank you, Griffin, for the question. That is an indefinite delivery and indefinite quantity contract, which allows us to bid on opportunities as they arise. Redwire has developed technology that is highly relevant to JADC2 and ABMS. We have a digital engineering enterprise software package that models and simulates constellations at scale with high fidelity. This capability is crucial as the JADC2 architecture evolves since it allows different command and control systems to simulate the space environment realistically. The primary objective of the JADC program is to integrate various data sources to enhance situational awareness. By being a key software provider that can simulate space's role in different operational concepts and scenarios, Redwire is well-positioned. This contract is one of several that provides Redwire access to national security customers. It’s important to note that startups cannot easily enter the national security sector; without existing contracts, security infrastructure, and personnel security clearances, it’s challenging to benefit from the significant budget growth we mentioned related to the U.S. Space Force and similar organizations. Redwire, with its capabilities, can leverage contracts like the ABMS IDIQ. As for our competition, it's a broad contract with multiple awards, though I don’t have the exact number. However, our software is unique and differentiated, providing us with significant opportunities.

I have a quick question about the backlog. How much of the current $274 million do you expect to recognize as revenue for the rest of 2022? I know we discussed this earlier, and you mentioned that reaching the high end of your revenue guidance this year depends on the timing of the $547 million bids you have in place. I'm also curious about the general duration of your backlog historically, and how that relates to the $547 million bid and proposal pipeline. Do you have any insights on the expected duration?

I’ll address the first backlog question, and Andrew or Pete might have additional insights on the bids. Generally, we anticipate that around $100 million of our current backlog will convert to revenue this year. Our backlog usually consists of multiyear contracts, which can vary significantly based on the type of contract. Therefore, there isn't a straightforward answer regarding the timeframe for revenue recognition. Regarding bids, the situation mirrors that of the backlog; there are various programs with differing timelines, making it challenging to predict which amounts will become revenue within a specific timeframe.

Regarding your question about the pipeline, the $547 million in submitted bids discussed by Pete represents just a part of our sales pipeline. This segment is the closest to being finalized. It is part of a larger pipeline valued in the billions. As Pete mentioned, our historical win rates are substantial for this sector. Therefore, we anticipate that a significant number of those submitted bids will convert into wins. We have observed good sales in Q2, and we expect this trend to increase moving forward, along with future bids converting into backlog.

We have reached the end of the question-and-answer session. And I’ll now turn the call over to Peter Cannito for closing remarks.

I’d just like to thank everybody for joining us tonight, and have a good evening.

This concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.