GomSpace Reports 2016 Results: Revenue Up, Profitability Down

Stockholm – Nanosatellite manufacturer GomSpace Group has released its financial results for the fourth quarter and the full year of 2016. The company reported significant revenue growth compared to the previous year, but saw a decline in profitability and recorded an operating loss.

In the fourth quarter, from October to December 2016, net revenue increased to SEK 17.1 million (SEK 12.0 million in 2015). However, the gross margin decreased to 21% (88%), and the operating profit was negative SEK 16.7 million (SEK 5.98 million). The company attributed changes in revenue and gross profit to adjustments in revenue recognition policies and the elimination of partial revenue and profit related to Aerial & Maritime Ltd.

For the full year 2016, net revenue reached SEK 54.1 million (SEK 34.1 million in 2015), representing a 59% increase. The gross margin decreased to 47% (50%). The operating profit for the year was negative SEK 14.5 million (negative SEK 2.36 million). Despite this, the company reported a net profit of SEK 9 million for the year, bolstered by a non-cash financial income of SEK 21.4 million from the establishment of Aerial & Maritime Ltd.

CEO Niels Buus stated that while the results were slightly below growth targets, the underlying performance, excluding adjustments, was better than the growth plan. He noted that without these adjustments, revenue growth would have been 82% with a gross profit of 53%. The company's workforce increased to 77 employees by the end of the year.

GomSpace specializes in the manufacturing of nanosatellites and related services, aiming to expand its presence in the global space market. The company is listed on the Nasdaq First North Premier exchange under the symbol GOMX.