Margins — Chris Kemp unpluggedAstras CEO dishes on the space companys struggles “Im a public company, I cant make this shit up.”
Stephen Clark – Aug 21, 2023 9:31 pm UTC Enlarge / Chris Kemp, founder and CEO of Astra.David Paul Morris/Bloomberg via Getty Images reader comments 28 with
Chris Kemp is a fighter. That’s the price of admission if you want to compete in the brutal small launch industry. He is the co-founder, chairman and CEO of Astra, founded in 2016 with a goal of essentially commoditizing small satellite launch services, or at least getting a lot closer to that than anyone else.
But there are a lot pressure points for Astra in 2023. The company abandoned its first orbital rocket design, called Rocket 3, last year after a string of failures. With higher interest rates, raising money in 2023 isn’t as easy as it was a few years ago. And calling Astra’s competition stiff is definitely an understatement.
Kemp argues that Astra finds itself in a different position than, say, Virgin Orbit, a small satellite launch company that went bankrupt earlier this year. Astra has diversified, and can lean on a separate source of revenue in a promising business building electric thrusters for small satellites. This business, which Astra calls spacecraft engines, was made possible by the acquisition of a company called Apollo Fusion in 2021.
SpaceX is achieving great success in aggregating large numbers of small satellites onto its Falcon 9 rocket, significantly bigger than vehicles like Rocket Lab’s Electron launcher or anything on Astra’s drawing board.
That has pushed Rocket Lab and Relativity Space to prioritize developing larger rocketsthe Neutron and Terran Rthat are partially reusable to better compete with SpaceX’s Falcon 9. Astra, on the other hand, is still betting what an inexpensive, mass-produced, expendable small rocket can be successful in winning business to haul lightweight satellites into orbit, either one at a time, or in small groups. The argument there is that a small rocket can deliver payloads to optimal orbits, instead of releasing them at an undesirable altitude or inclination.
Whether or not that’s the right business strategy, the predicament that Astra currently finds itself in is that the first iteration of its small launch vehicle, Rocket 3, failed to become a reliable option for customers. In seven orbital launch attempts, Rocket 3 failed five times. To be fair, Kemp points out that some of these launches were test flights without functioning satellites on board. Astra moved on from Rocket 3 after a launch failure in June 2022 destroyed two NASA hurricane research satellites. Advertisement
Ars published a story last week about the headwinds facing Astra, which recently announced layoffs of about 25 percent of its workforce. It is now staffed at between 200 and 250 employeesquite a lean operation compared to peers in the small launch industry. Around 50 of those employees were shifted from working on Astra’s new rocket, called Rocket 4, to devote their time to satellite propulsion systems.
Astra has a big challenge ahead, but it’s obvious Kemp isn’t ready to throw in the towel. Hespoke with Ars on Friday from Astra’s rocket factory in Alameda, California. Here are some highlights. Is it fair to say Astra is in a fight for survival?
Chris Kemp: “It is a little unfair … We have a very profitable source of revenue, which is our spacecraft engine. Weve sold hundreds of them at great margins.
“This is our rocket facility. This is a quarter of a million square feet. You can see the rocket production line behind me. There are people down there making rocket stuff. Its real. Thats a Rocket 4 stage on the production line … I could characterize the launch business at Astra as fighting for its survival, but I wouldnt characterize Astra as fighting for its survival. Astra has always had the option of just stopping the launch business. The reason why we havent is we have already largely completed the development and the capex [capital expenditures] required to manufacture the vehicles two years ago, when we started the Rocket 4 program, hundreds of millions of dollars ago, before we had engines and stages and a giant $100 million production line. Weve now done so much work toward this program that the next step is just testing things and going out and doing some test flights. Then the Space Force has some flights. We have some NASA flights. We have a backlog of launch contracts. In the case of the Space Force contract, thats an $11.5 million contract, millions of dollars of cash comes in, in advance of launch, because of the milestones were achieving.
“So I look at it and I say, well, if I were not to do launch, we simply wouldnt be able to bill the Space Force for these milestones. So what it does it cost me to continue running launch versus what would it cost me to shut down launch? Its kind of a wash, honestly, if we continue to get contracts and government support for launch, and the government has said that they really want to support it. I mean, there are three (private or venture-backed) companies right now operating that have put satellites in orbitSpaceX, Rocket Lab, and Astrafull stop. Fireflys stuff deorbited in a few days. ABL blew up everything, Relativity failed and scrubbed the program and wont fly again until 2027 [Relativity says Terran R’s first flight is scheduled for 2026]. Advertisement Enlarge / Astra revealed a prototype of its Rocket 4 launch vehicle in May.Astra
“The way I look at it is there are three launch companies that can point to the sky and say weve put satellites in orbit, and were one of them. And were the only one of them that has already invested hundreds of millions of dollars in a production line. Were the only one of them that has a mobile system that we have already demonstrated. We can go to Cape Canaveral and set up in under a week. We have some Space Force people here right now walking the production line … We have folks that view what Astra has built and demonstrated, and they say, ‘This has value to us, you guys have a mission control with two people in it, you guys have a system that last year deployed at Cape Canaveral in six days.’
“Its only going to get better from here with a 600-kilogram class vehicle (Rocket 4’s planned payload capacity to low-Earth orbit), and I think that puts Astra in a position where just killing launch, given we have customers and cash and revenue coming into that business, isnt an obvious choice for us. Its a risky choice for us.
“But weve got this public company now with stock trading at 25 cents per share. That makes it nearly impossible for us to raise any meaningful amount of capital in public markets. So that basically means that we need to take the revenue coming in, the cash coming in from our spacecraft engines business, and whatever cash comes in from our launch business, and kind of make it work.” Page: 1 2 3 Next → reader comments 28 with Stephen Clark Stephen Clark is a space reporter at Ars Technica, covering private space companies and the worlds space agencies. Stephen writes about the nexus of technology, science, policy, and business on and off the planet. Advertisement Channel Ars Technica ← Previous story Next story → Related Stories Today on Ars
A hidden, underground military base in eastern Ukraine is so secret, soldiers change into civilian clothes whenever they step outside to avoid drawing attention.
Journalists are not usually allowed access.
But the unit that has been using this vast, subterranean warren of war rooms, a dormitory, kitchen, canteen and makeshift gym as its headquarters since the summer is imminently relocating, so Sky News was invited inside.
Lieutenant Colonel Arsen Dimitric – call sign Lemko – is the chief of staff of 1st Corps Azov of the National Guard of Ukraine, one of the country’s most effective combat forces.
Image: Lemko
He sat with us in the base, next to a large square table, covered by a map of the Donbas region.
His soldiers have been fighting in this area since the summer, countering a surge in Russian attacks in and around the frontline city of Pokrovsk.
“We aim to destroy as much of the enemy as possible,” he said.
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“Will we take losses? Yes. Will it hurt? Absolutely.”
But he said if Russia is allowed to advance, even more Ukrainians will suffer.
“Their [the Russians’] only advantage is numbers,” he said.
“They don’t care how many people they lose.”
Lemko said almost 17,000 Russian soldiers had been killed or wounded fighting in this section of the warzone alone between August to November.
Ukrainian video footage of the battlefield showed Russian armoured vehicles being taken out by drones and artillery fire.
At one point, Russian soldiers mounted on motorbikes try to advance, only to be stopped by Ukrainian fire.
“Our task is to hit them as hard as possible in various areas,” Lemko said. “We focus on our operations, others on theirs, and leadership will negotiate the best possible terms.”
The Azov Corps soldiers are fighting over land that should be handed over to Russia, according to an initial draft of a peace deal proposal between Kyiv and Moscow put forward by the United States. This is despite swathes of the Donbas remaining under Ukrainian control.
But General Oleksandr Syrskyi, the head of the Ukrainian armed forces, has since told Sky News that simply surrendering territory would be “unacceptable”.
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3:31
Giving up territory ‘unacceptable’, Ukraine’s military chief says
For Lemko, he says the job of his troops is to inflict as much damage as possible on the Russian side to help strengthen Ukraine’s hand in negotiations.
“Simply giving it [land] away isn’t the way,” he said.
“Diplomats do their work, we do ours. Our job as soldiers is to give as many advantages as possible to our negotiating team. And we’re doing exactly that.”
Lemko, who has been battling against Russia since the Crimean annexation in 2014, also had a warning for the rest of Europe about a rise in hybrid attacks, such as mysterious drone sightings, acts of sabotage and cyber hacks suspected of being linked to Moscow.
He said Ukraine’s experience showed that if attacks by Russia that fall under the threshold of conventional war are not successfully countered, full-scale conflict could follow.
“Ukraine once lost a hybrid war that had been waged since the very start of our independence,” he said.
“Because of that defeat, there was a physical operation against us in Crimea and then a physical operation in 2022.
“Now the hybrid war has reached its climax, and it is moving into the Baltic States and Europe.
“That is why, in my opinion – and in the opinion of most of our officers – now is the moment for all countries to unite and counter this hybrid war. Because the consequence may be a physical one.”
Production: Katy Scholes, security and defence producer, and Azad Safarov, Ukraine producer.
At least 25 people have been killed after a fire at a nightclub in Goa, the state’s police service has said.
The fire reportedly started around midnight on Saturday local time.
The majority of victims were kitchen staff at the club – although around three to four tourists are thought to be among those killed.
Videos on social media showed emergency services lining up to help the injured – some of whom were taken to nearby hospitals.
Dr Pramod Sawant, Goa’s chief minister, said: “I am deeply grieved and offer my heartfelt condolences to all the bereaved families in this hour of unimaginable loss.”
He later said he was “closely reviewing the situation arising from the tragic fire” – adding six additional people had been injured.
“All six injured persons are in a stable condition and are receiving the best medical care,” he said.
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Image: Pic: NDTV
Image: Fire at nightclub in Goa. Pic: NDTV
Authorities worked through the night to bring the situation under control and all bodies have been recovered, the state’s police chief told reporters, according to Reuters news agency.
India’s Prime Minister Narendra Modi said the deadly fire was “deeply saddening”.
He said he had spoken with Goa’s chief minister and that “the state government is providing all possible assistance to those affected”.
Dr Sawant said he has “ordered an inquiry” to discover what happened after visiting the site.
Image: Pic: AP
“The inquiry will examine the exact cause of the fire and whether fire safety norms and building rules were followed,” he said.
“Those found responsible will face most stringent action under the law – any negligence will be dealt with firmly.”
Goa, a small state on India’s western coast, is a popular tourist destination, attracting millions of tourists every year.
Framed photos with presidents, princes and even the pope adorned the many homes of Jeffrey Epstein.
This article contains images and language that some readers may find disturbing.
The disgraced New York financier’s most lucrative currency was people. He made a career out of connections with world leaders in politics, business titans and science’s most lauded brains.
The man formerly known as Prince Andrew, Andrew Mountbatten-Windsor, described Epstein‘s appeal in his infamous TV interview: “He had the most extraordinary ability to bring extraordinary people together and that’s the bit that I remember, going to the dinner parties where you would meet academics, politicians, people from the United Nations. It was a cosmopolitan group of what I would describe as US eminence.”
His network was not just US-based but the global elite – among them hedge fund owners, bankers and hoteliers.
But as more and more new documents and photos are made public, we can build up an intimate portrait of a man who kept so much private.
Another man once called a prince, but of darkness this time, Peter Mandelson, described his “best pal” as a “prolific networker”. Epstein’s friends crossed political parties – Republican and Democratic – and continents.
Image: Epstein and Mandelson. Pic: US House Oversight Committee
Epstein’s Palm Beach mansion was just a seven-minute drive from Donald Trump‘s Mar-a-Lago. In 2002, Mr Trump told New York Magazine: “I’ve known Jeff for 15 years. Terrific guy. He’s a lot of fun to be with. It is even said that he likes beautiful women as much as I do, and many of them are on the younger side.”
They are said to have fallen out while competing to purchase a mansion in 2004.
Image: Trump and Epstein at a party together in 1992. Pic: NBC News
Image: Jeffrey Epstein and Ghislaine Maxwell meeting Pope John Paul II
The former prime minister of Norway and former president of the Maldives sought his advice on politics and finance respectively.
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1:02
Inside Jeffrey Epstein’s private island
An enigma
Epstein’s emails are short, often abrupt and riddled with spelling mistakes. The impression he wanted to give: he was a busy man, an enigma. You were lucky to be getting a reply.
He cared about appearances – his own and of the women he abused. He dated many models, including a former Miss Sweden. He followed a strict diet to keep lean and insisted the women in his life did the same.
Image: A drawing in Epstein’s 50th birthday book
His now notorious 50th birthday book is packed full of candid snaps, some featured here, that flaunt his lavish lifestyle. It is also brazen in its relishing of Epstein’s proclivity for young women. Images of scantily clad women are included in photos and doodles.
The anecdotes from his wealthy, powerful friends are often smutty or innuendo-led. “It’s no secret that Jeffrey appreciates beautiful women. But not many people know that he can create them out of thin air,” reads one.
Massages were entry route to abuse
Epstein’s black book of contacts had lengthy lists of women lined up for “massages” in Florida, California, New Mexico, New York, London, Paris and his island.
At least 152 women are named in it with phone numbers – they were available on speed dial.
The premise of a massage was often his entry route to abuse. The massages were scheduled, part of his daily routine. Whether on a private jet or his private island, he acted with impunity for far too long.
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2:08
Inside Epstein’s island: What do new images tell us?
Epstein did not show remorse for his crimes
Multiple women went to the police to report his actions over the years. But the only jail time he was ever sentenced to was in 2008 after a controversial deal where he pleaded guilty to state charges of soliciting a minor for prostitution. He was sentenced to 18 months in jail, but only served 13 and negotiated the ability to leave the jail six days a week for up to 12 hours a day for work.
Despite becoming a registered sex offender in 2008, he was far from a social pariah. Nor did he show remorse for his crimes.
Even a decade after his conviction, he was still mocking sexual abuse. He wrote in a message to a friend in 2018, “so many guys caught in the me too, reaching out to me. Asking when does the madness stop. Funny,” and then that “breast cancer was easier to cure than the me too movement”.
Image: A picture of Jeffrey Epstein from his 50th birthday book
‘Epstein claimed if girls had started menstruating they were of age to have sex’
Virginia Giuffre revealed in her memoir that Epstein would say that criminalising sex with teenage girls was a cultural aberration. He would point to different US states having different ages of consent – in Florida it was 18. He claimed if girls had started menstruating they were biologically of age to have sex.
Documents released by the House Oversight Committee reveal he paid to “clean up” what came up about him on Google after his conviction. On 11 December 2010 he bemoaned that despite forking out thousands, “the google page is not good” in an email.
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13:31
The Epstein files released last month: Sky’s US correspondent Mark Stone explains
‘An extraordinary volume’ of naked photos of young girls
On 6 July 2019, Epstein was arrested on federal charges related to sex trafficking after his private jet flew into the US from Paris.
“An extraordinary volume” of naked photos of young girls were found in his New York town house. Authorities also found a safe containing 48 loose diamonds, $70,000 (£52,000) in cash and three passports belonging to the sex offender. The expired Austrian passport had a photo of Epstein, but a different name and an address in Saudi Arabia.
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On 10 August 2019, Epstein was found dead in his New York prison cell while awaiting trial. Forty-eight hours before he died he signed a will which put his assets in a trust, the beneficiaries of which remain private.
Epstein’s most vocal victim, Ms Giuffre, who took her own life this year, closes her memoir Nobody’s Girl saying: “Epstein is dead but the attitude that allowed him to do what he did, it’s alive and well.”
Six years after his death, Epstein continues to haunt those who knew him. Some may be scared – for their reputation, careers and for what more could still come out.