GomSpace Reports Revenue Growth Amidst Payment Delays

GomSpace Group AB, a provider of nanosatellite solutions, has released its financial report for the fourth quarter and full year of 2018. The company reported a 59% increase in net revenue for the full year, reaching 153.4 million SEK compared to 96.4 million SEK in 2017. However, this growth was tempered by project delays stemming from overdue payments by Sky and Space Global, a major client.

In the fourth quarter specifically, net revenue rose to 40.2 million SEK, an increase of 36%. Yet, the gross margin significantly decreased to 6% from 26% in the same period of the previous year. The operating result for the quarter was a loss of 44.5 million SEK, a decline from a loss of 23.1 million SEK in the fourth quarter of 2017. CEO Niels Buus stated that the halt in the Sky and Space Global project due to non-payment affected revenue and margin expectations, leading to restructuring and staff reductions.

GomSpace also announced new contracts with the European Space Agency (ESA). One contract initiates work on the GOMX-5 satellite mission to explore new nanosatellite capabilities for future constellation generations. Additionally, a contract was signed for a nanosatellite to be part of the HERA mission, marking GomSpace's first satellite developed for deep space missions.

The company secured 251 million SEK in a rights issue during late 2018. As of December 31, 2018, GomSpace's order book stood at 715.4 million SEK, with expectations to convert 80–90 million SEK of this backlog into revenue in 2019. The company noted that documentation for a bank transfer from Sky and Space Global was received on February 22, with the payment anticipated shortly.