GomSpace reports significant order growth but decreased operating profit in Q2 2019
Nanosatellite provider GomSpace announced a 105% increase in order intake for the second quarter of 2019, with net revenues up 25%. However, the company reported a larger operating loss.
GomSpace Group AB, a provider of nanosatellite solutions, reported a significant increase in order intake for the second quarter of 2019. Order intake rose 105% to 61.7 million SEK from 30.1 million SEK in the same period a year prior.
Net revenues for the quarter increased by 25% to 52.2 million SEK. However, the company's gross margin decreased to 23% from 28% year-over-year. The operating result worsened, showing a loss of 42.3 million SEK, compared to a loss of 26.6 million SEK in Q2 2018.
For the first half of 2019, order intake grew 71% to 76.5 million SEK. Net revenues saw a smaller increase of 3% to 82.1 million SEK. The gross margin for the first six months was 15%, down from 31% in the first half of 2018. The operating loss for the year-to-date period was 69.9 million SEK.
Following the reporting period, GomSpace and the European Space Agency (ESA) signed a contract valued at EUR 1.425 million for continued constellation management development. CEO Niels Buus highlighted the strong long-term potential for the nanosatellite market, noting increasing investments and interest from government and security sectors.