Record revenue but with continued unsatisfying profitability
jan-mar jan-mar jan-dec
TSEK 2022 2021 2021
Revenue 99 887 37 131 191 378
Operating profit/loss -17 508 -30 658 -113 383
Profit/loss for the period after tax -11 780 -11 254 -83 854
Earnings per share, SEK -0,21 -0,24 -1,78
Total cash flow -95 568 -94 402 208 880
Equity ratio, % 79 95 78
Order book, SATCOM services, MUSD 22,4 11,5 29,1
Share price end of period, SEK 50,7 71,6 62,8
Record revenue but with continued unsatisfying profitability
Revenue during the first quarter of 2022 have never been higher in any quarter before for Ovzon. We continue our focus on driving profitability in our core business, Ovzon SATCOM-as-a-Service. It is worth noting that we continue to carry the costs of the strategically important investments we have made in high-performing satellite capacity, in order to be able to offer our customers global coverage and to be ready when our own satellite Ovzon 3 is in operational position.
During the first quarter, Ovzon has of course focused on delivering on the strong order intake of almost MSEK 250 that we received during the second half of 2021. The increased order intake is a clear evidence that our SATCOM-as-a-Service offering is unique and world-leading, and our reputation is beginning to have an impact beyond our previously prioritized customer segments. An increasing number of both existing and potential customers are attracted by our premium value proposition and solutions, as we continue to work closely with and deepen our understanding of the customer's environment and operations. We are agile and disciplined in our delivery of mobile satellite communications with high quality and exceptional transmission and reception capacity.
Increased production volumes
Through the large order we received from the Italian Fire and Rescue Service at the end of 2021, we now have two strong customer segments: Government & Defense and Emergency & Rescue Services. On April 1, we started delivering the Ovzon SATCOM-as-a-Service to our new large customer in Italy. The customer will be an important reference for us going forward.
In parallel, we have scaled up the production of our latest mobile satellite terminal, Ovzon T6, considerably, with increased delivery volumes primarily to the U.S. DOD. We initiated a comprehensive industrialization initiative during 2021, to make the business more process and delivery capable, in order to be able to quickly ramp-up the production pace, deliver the highest quality, on time and globally. It paid off during the first quarter in terms of production and deliveries of terminals at volumes higher than ever before.
Ovzon's On-Board Processor (OBP) delivered for integration on Ovzon 3
Preparations for the launch of our own satellite in 2022 continues to progress together with our satellite manufacturing partner Maxar. Our proprietary developed communications platform, the Ovzon On-Board Processor, has undergone meticulous tests and has been tuned during the quarter. It has now been delivered to Maxar for installation and integration on the satellite. Ovzon 3 will be an important milestone to further enhance the value of our unique SATCOM-as-a-Service offering, as it allows us to offer increased capacity, flexibility, security and the possibility of increased data speeds and new applications for customers. However, in the short term, Ovzon 3 has no direct impact on our current business and delivery capacity, as we have previously strategically secured leased satellite capacity. Most important is the finalization of Ovzon 3, in order to bring the capability and performance that makes it unique, which will enable us to deliver the next generation of SATCOM-as-a-Service to existing and new customers.
Increased investment and activities in the satellite industry
Another important event during the first quarter, for us and the satellite communications industry, was the annual industry show, Satellite 2022, in Washington DC at the end of March - an event that was extra well attended this year due to lower pandemic restrictions. There is a significant appetite for investments and activity in the satellite industry right now, with increased interest from investors and a large inflow of capital in the GEO, MEO and LEO segments. It benefits the pace of innovation and the development of new technologies and business models throughout the industry and thus sheds light on companies such as Ovzon, with a modern business model and leading-edge technology. A couple of transactions, such as Viasat's acquisition of Inmarsat and SES 'acquisition of Leonardo DRS Global Enterprise Solutions, have further increased interest and the temperature in the industry.
An important 2022
2022 will be an important year in Ovzon's history. We have ambitious growth targets to achieve. We will launch our first own satellite Ovzon 3, which includes our unique communications platform - the Ovzon On-Board-Processor.
The year has started well, and we have a solid foundation to be able to deliver on the orders we won in 2021, while we continue to focus on sales to both existing and new customers. Our assessment of higher sales in 2022 compared with 2021 remains unchanged.
We follow and, of course, deplore the appalling situation in Ukraine and the security concerns in Europe and in the rest of the world that follow. The situation may impact our operations as Ovzon's services can deliver a solution fast in situations where traditional communication channels are non-functional or unavailable. We are involved in a number of strategic discussions regarding SATCOM-as-a-Service. Having reference customers and available capacity is of course an advantage in these challenging situations.
Per Norén, CEO Ovzon
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