GomSpace (provider of nanosatellites) announces its quarterly results for the second quarter 2023 8/22/2023
GomSpace (provider of nanosatellites) announces its quarterly results for the second quarter 2023
Stockholm, August 22, 2023. GomSpace Group AB (the “Company”) announces its interim report for the second quarter of 2022. The report is available on the Company’s homepage (www.gomspace.com). The following is taken from the quarterly report:
Second quarter summary
1 April – 30 June 2023 (2022)
· Order intake was T.SEK 22,671 (43,931)
· Net revenues slightly decreased by 2% to T.SEK 50,275 (51,253)
· Gross margin decreased to negative 30% (positive 6%) due to a revenue mix with less profitable engineering projects and one-off costs due to terminated unprofitable engineering contracts in the scientific segment
· Operating profit (EBIT) decreased to negative T.SEK 36,114 (negative 31,281)
· Earnings per share was negative SEK 0.25 (negative 0.45)
1 January – 30 June 2023 (2022)
· Order intake decreased by 38% to T.SEK 53,388 (85,428)
· Net revenue decreased by 1% to T.SEK 128,425 (129,618)
· Gross margin decreased to negative 39% (negative 21%)
· Operating profit (EBIT) decreased to negative T.SEK 50,192 (negative 27,115)
· Earnings per share were negative SEK 0.49 (negative 0.43)
· In April, we signed a Memorandum of Under-standing with SAIC, a premier Fortune 500® technology integrator partner. Our aim is to broaden our reach to government and commercial customers in the Americas
· In May, we had several negotiations with ESA regarding the climate observation mission. However, after careful consideration, we decided not to proceed to the next phase. We determined the project unprofitable and unsuitable for our goals
· In May, at the annual general meeting elected, two new members to strengthen the Board of Directors: Stefan Gardefjord and Henrik Kølle, both having extensive experience in management and industry knowledge
· In July, GomSpace and Terma signed a MoU aimed at building a joint offering for an Asian project focusing on monitoring and protection of water territories
· In August, we signed a Contract Change Notice with ESA for €1.500.000 for the implementation of Juventas CubeSat. GomSpace is leading the Juventas CubeSat mission with the help of European subcontractors. The spacecraft is expected to be de-livered by the end of 2023 for integration and testing with the mothercraft HERA
CEO, Carsten Drachmann comments on the quarter:
“In the first quarter of 2023, GomSpace started a transformation process to become a more market-oriented and profitable organization. Q2 has been focused on driving the transformation on many fronts, including redefining our teams and setting very clear targets. We now know and understand the steps we need to take to reach our goals.
As a primary driver, we have set ourselves a clear goal of becoming free cashflow positive, in the 2nd half of 2024, I am happy to report that our free cash flow has improved from negative M.SEK 42,400 from Q1 2023 to a negative M.SEK 27.8 in Q2 2023. This is the trend we are measuring ourselves against and the improvement is a result of focusing on profitable projects and the reduction of costs and staff, initiated in the beginning of 2023.
The reduction was a sad yet necessary decision under the circumstances and we have now completed the action and said goodbye to 70 people since January 2023. We will see the full cost saving impact from Q3 2023 and onwards.
On a positive and personal sidenote, I am happy to report that most of the people that we had to let go, have found a new job even before the end of their termination period. This is a testament to the quality of people working at GomSpace. I wish all of them the best in their future endeavors and hope to see some of them again on the GomSpace team in the not-too-distant future.
As reported in June, we also defined ourselves three strategic anchors to guide our turnaround:1) More Product Business, 2) Focus on project profitability and best fit, 3) Expand North America. During Q2, we have executed an extensive transformation process within the organization to enable and secure focus on those strategic anchors.
Specifically, we have created a Product Business Unit, to secure a better focus on sales and continuous product road map development. There is good business for GomSpace in products and we have recently strengthened our sales team with one additional member.
To address the second point of focus on project profitability and best fit, we have created a team with a focus on project delivery, and equally important, onboarding of new customer contracts. In the short run, we have reviewed our current project portfolio and, as reported separately, we have agreed to terminate a large ESA program with negative profitability and cash flow. This results in a net reduction of the order backlog with M.SEK 215 of revenue, yet with a positive impact on our project profitability.
For North America, we have defined a dedicated team, with staff both in Aalborg and the US. Our collaboration with SAIC is strengthening, and we recently shared a booth at the Small Sat conference in Utah, USA.
Looking into the 2nd half of 2023, we stay focused on our transformation plans and work towards a free cashflow positive situation in the 2nd half of 2024”.
Second quarter presentation
The interim report for second quarter 2023 will be presented at a webinar today 22 August at 13:00 CET, hosted by HC Andersen Capital. Register for the event here (https://www.linkedin.com/events/gomspace-presentationofq2interi7082351150879911936/).
For more information, please contact:
Carsten Drachmann (CEO)
Tel: +45 40 63 40 36
E-mail: cdra @ gomspace.com
About GomSpace Group AB
The company’s business operations are mainly conducted through the wholly-owned Danish subsidiary, GomSpace A/S, with operational office in Aalborg, Denmark. GomSpace is a space company with a mission to be engaged in the global market for space systems and services by introducing new products, i.e. components, platforms and systems based on innovation within professional nanosatellites. The company is listed on the Nasdaq First North Premier exchange under the ticker GOMX. FNCA Sweden AB is the Company’s Certified Adviser. For more information, please visit our website on www.gomspace.com.
GomSpace Group AB (publ) is obligated to make this information public pursuant to the EU Market Abuse Regulation. This information was submitted for publication, through the agency of the contact person set out above, at 08:00 a.m. CET on August 22, 2023.
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The following files are available for download:
https://mb.cision.com/Main/14387/3821145/2239955.pdf Q2_online version
https://mb.cision.com/Public/14387/3821145/bf113b81721a966d.pdf Press release - Q2 2023 Interim Report - summary