GomSpace Reports Improved Profitability in Second Quarter

Swedish nanosatellite manufacturer GomSpace released its financial results for the second quarter of 2016 on August 22, highlighting a significant improvement in revenue and profitability compared to the previous year.

During the quarter, the company's net revenue rose to SEK 13.9 million (from SEK 8.0 million in 2015), and its gross margin improved to 66% (from 38%). The period's profit turned positive at SEK 0.97 million (compared to a loss of SEK 2.24 million a year prior). Earnings per share were SEK 0.09 (negative SEK 3.2).

The company also reported progress on several key projects. These included a successful trial of airline tracking in collaboration with Flightradar24 and Airbus Defence, an investment collaboration on a major satellite project in Africa with IFU for a constellation of nanosatellites, and an agreement with DALO and DTU for a nanosatellite-based surveillance demonstration in the Arctic.

For the first half of 2016, net revenues increased to SEK 24.9 million (from SEK 13.1 million) and the gross margin stood at 65% (from 28%). The total result for the first half was a profit of SEK 1.45 million (compared to a loss of SEK 5.84 million in 2015). CEO Niels Buus stated that the first-half results progressed satisfactorily and within expectations, noting that the investment program is expected to increase expenses and negatively impact profit in the coming years, but the underlying gross margin profitability will remain strong.