October–December 2023

  • Revenue totaled 91 MSEK (101)
  • Operating loss and totaled -14 MSEK (-43)
  • Profit after tax totaled 12 MSEK (-43)
  • Earnings per share totaled 0.23 SEK (-0.83)
  • Cash flow for the quarter totaled 191 MSEK (-57)

Full year, January–December 2023

  • Revenue totaled 290 MSEK (357).
    Adjusted revenue totaled 290 MSEK (354)
  • Operating loss totaled -95 MSEK (-81).
    Adjusted operating loss totaled -106 MSEK (-81). Operating profit/loss was impacted by a provision for bad debt of -7 MSEK (-50)
  • Loss after tax totaled -60 MSEK (-36)
  • Earnings per share totaled -1.09 SEK (-0.71)
  • Cash flow for the period totaled -31 MSEK (-161)
  • The Board of Directors proposes that no dividend be paid for the financial year 2023

Significant events during the quarter

  • Order of 135 MSEK from the Swedish Space Corporation (SSC)
  • Order of 3.1 MUSD from the U.S. DOD for SATCOM-as-a-Service
  • Ovzon receives approximately SEK 250 MSEK after oversubscribed rights issue
  • Regina Donato Dahlström new Chairman of the Board

Significant events after the end of the quarter

  • Successful launch of Ovzon 3 on January 3, 2024
  • CFO Noora Jayasekara to leave the company in the first half of 2024
  • U.S. DOD first to order the new Ovzon T7 mobile satellite terminal

Successful launch and strong finish to 2023

Ovzon certainly had an eventful fourth quarter 2023, with a strong finish in terms of order intake. This manifests a strenghtened position among our European defense and national security customers during the year. The most significant milestone was of course the launch of our own first satellite Ovzon 3. The satellite was ready to be launched in December 2023 but the launch was, due to severe weather, pushed into early January 2024. This historic milestone facilitates our cutting-edge next generation SATCOM-as-a-Service. Hence, Ovzon’s focus for 2024 will be on customers interactions, displaying our boosted performance, mobility and resiliency – the true differentiators of our offering.

Ovzon’s order intake for the fourth quarter amounted to 17.6 MUSD (186 MSEK), with new orders as well as renewals. The improved order intake and sales contributed to reaching our adjusted outlook of at least 290 MSEK in full-year revenue.

The largest order in the quarter was received from the Swedish Space Corporation (SSC) with a total order value of 135 MSEK. The order was for the integrated Ovzon SATCOM-as-a-Service, which includes mobile satellite terminals, with start of delivery of the mobile satellite terminals already in December 2023. This order underpins the fact that Europe is becoming an increasingly important geographical market for Ovzon. Following the increased geopolitical tension, especially in Europe and the Middle East, satellite communication is a strategic capability for the world’s government and defense organizations. Sweden is one of the countries that is rapidly advancing its position.

Moreover, we received two orders from the U.S. DOD of a total of 4.3 MUSD during the quarter for Ovzon SATCOM-as-a-Service. The first one was an additional order of 1.2 MUSD and the second one was an annual renewal, which this time was rescoped to an 8-months contract of 3.1 MUSD. This renewal was lower in size compared to previous years, mostly explained by a complex political and fiscal situation in the USA resulting in new budget considerations and processes. However, our relationship with the U.S. DOD remains solid, long-term and strategic, where our next generation of products and services, including the Ovzon 3 satellite, the Ovzon On-Board-Processor and the Ovzon T7 terminal, are important capabilities. After the end of quarter, U.S. DOD was also the first customer to place an order for the new Ovzon T7 mobile satellite terminal. The Ovzon T7 mobile satellite terminal is the smallest, most powerful and easiest-to-use satellite terminal in the industry. Together with the Ovzon On-Board-Processor, the Ovzon T7 will be capable of frequency hopping, below the noise floor signaling, and operating independent of a teleport.

Successful launch of Ovzon 3 – a historical milestone

The most important milestone in the history of our company was the launch of Ovzon 3 from Cape Canaveral, Florida on January 3, 2024. The satellite was ready to be launch in mid-December 2023 but due to unfavorable weather conditions it was pushed to early January 2024. We are immensely proud to have launched the first privately funded and developed Swedish geostationary communications satellite ever. It’s been achieved through hard work by our extraordinary employees and in teaming with our partners Maxar and SpaceX. As always when working in space, risks still remain before the satellite enters into service, but so far the Ovzon 3 orbital raising to its final destination is fully on track. The satellite is healthy and in great shape. We are closely monitoring its progress in detail. For a real-time position of Ovzon 3, please click on the link to the right.

Growing need for mission critical mobile satellite communications

In December 2023 we concluded our rights issue raising approximately 250 MSEK. The issue was oversubscribed. I would like to thank our long-term and loyal existing shareholders for their solid trust. The process, in combination with a great public interest in the company and the launch of Ovzon 3, has increased our shareholder base with approximately 20 percent. I wish to warmly welcome all our new shareholders. The proceeds of the financing will be used for the final investments in Ovzon 3, the Ovzon On-Board-Processor and Ovzon T7, where some cost still remain until the Ovzon 3 satellite solution is fully operational. It will also be used to finance our daily operations in 2024 and 2025.

Entering 2024, we are focused on getting Ovzon 3 ready for use and to drive profitable growth. We continue to foresee a growing need for mission critical mobile satellite communications in the years to come. We take great pride in supporting a more stable world by protecting and connecting societies, people, businesses, and countries. I am confident that Ovzon is playing a critical role for a safer world. We will continue to work hard and decisive to deliver customer satisfaction, invest in and protect our technology leadership and sharpen our market activities to accelerate future growth.

Per Norén, CEO Ovzon

Follow Ovzon 3 on it’s way to orbit (satellite tracker): https://www.keeptrack.space/app/?sat=58698&search=OVZON

In conjunction with this interim report, a webcast will be conducted at 2:00 pm CET on February 21, 2024. Ovzon’s CEO Per Norén and CFO Noora Jayasekara will present the results and answer questions.

The webcast can be reached via the following link: https://www.finwire.tv/webcast/ovzon/year-end-report-2023/

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