News & Media, page-2098

Latest research on GOMspace dated 6/3/19 with references to SAS.

https://www.aktieinfo.net/filer/gomspacefy2018.pdf

The following are extracts from the above research. Unfortunately the document was in Norweigan and has been translated with Google. Some of the grammar and punctuation is a bit dodgy.

An interruption has occurred in the execution of the absolute largest order made by Sky and Space Global for problems with their payments.but here is 20.5 million. SEK has just been received (covers the task with critical design review). The execution of the order has continuedunresolved and pt. covered by hope / fear. The consequence for GomSpace of the slowdown seems to be unexpectedly low activity in 2019 andthus a large deficit. However, cash burn this year is significantly lower than in 2018. In the short term, the company is thus exposed to headwinds.

The Company's expectations for the current financial year.
The Company's expectations for the current financial yearThe management does not provide any clear guidance. By order bookof DKK 713 million SEK represents Sky and Space Global DKK 623 million. SEK. Lack of payments has suspended execution. The order book is expected to carry out tasks for DKK 80-90 million. SEK in 2019. In addition, there is access to new ones from ongoingsales negotiations, and this part is supposed to amount to 15-25% of the year's revenue. An amount of DKK 20.5 million SEK has just been received from Sky and Space Global, but DKK 12.8 million. SEK is still missing. Guidance does not change.

Facts about GomSpace
The company's strong expansion has been temporarily halted due to pause in the settlement of the large order from Sky and Space Global, which has not complied with its payment deadlines. An amount of DKK 20.5 million However, SEK has just been transferred. Resumption ofthe order is awaiting a solution to the company's problems. At the end of 2018, there were 231 employees (199 calculated as FTE). As of 30-09, 235 employees (189 full-time employees) were employed. By comparison: at the end of 2017, GomSpace employed 176 employees (119 full-time employees), and at the end of 2016 the figure was 77. The distribution of the 231 employees (2018): 180 in production and R&D, 22 in Sales and 29 in administration. In 2018, the company has inaugurated its new factory for serial production. This makes you ready for delivery of network solutions that can include 50-250 units.

The company's development in 2018
Activity grew at a high pace over the past year and the long-term expansion with expansion of production capacity includingthe staffing continued - until payment problems occurred at the absolute largest customer, Sky and Space Global, in Q3. Their share of the order book has been approx. 85%, as the company wants to build a network of satellites for communication. The execution of tasks is degraded, and a new plan must be designed if the project is successful in resuming the original design. At the end of the year there was onereceivables from Sky and Space Global amounting to DKK 33 million. SEK. Of this amount, DKK 20.5 million is SEK just paid. The residual value of these orders amounts to DKK 623 million. SEK out of a total order book of DKK 715 million. SEK (87%). With the just received payment, the case may be opening up towards a clarification, but the management has not changed its guidance for 2019.

The capacity of GomSpace has already been geared up and during run-up for serial production (ramp up). The capacity is given to a satellite per week but with the possibility of expanding the pace to a piece per unit. working day in the long term. Starting up the new factory has also meant higher costs in 2018 measured in relation to invoicing. Now one has unexpectedly been forced to cut the staffing as a result of the interruption in the order execution for Sky and Space Global. Resignations will take place in Q1. Fortunately, the company's liquidity has been strengthened tremendously by the share subscription in December, so that it can cope with this shock - and also any write-downs if it goes completely wrong. Seen in the clear light of the backlog, this is a sensitive position for GomSpace about dependence on a single large customer, but unfortunately this is a basic condition here in the initial phase for nanosatellite networks. Customers also consist of young, dynamic companies with "optimistic economy" and not of old groups with great financial strength, such as, for example, telecommunications companies.

Assessment of the shares in the short and long term
So there is a prospect of a level shift upwards this year to approx. 550 three years ahead and then an annual growth of 10%. GomSpace way harder to acknowledge that competitors will overtake the company as a result of the breakdown in the implementation of the big order by Sky and Space Global. One must hope for a resumption of the project with the least possible breakdown and additional costs for this, but at the same time the effort to win other orders must be carried on to full force. Major projects of this kind, however, have a lengthy start-up with feasibility study and technical specifications followed by a pilot project (In Orbit Demonstration)before the final order can come into the house. The ballad around Sky and Space Global Order has made the dependence on few big ones visiblecustomers who are also young companies.

Regnskabstal
NB. In the estimate for 2019, the influence of the unresolved Sky and Space Global orders is not recognized in addition to liquidassets improved after the receipt of DKK 20.5 million. SEK pr. 06-03 (neutral effect until stop / go is decided).

The stock is coming out of the shadow after the big share drawing. Investors' confidence must be rebuilt. The first big onesatellite network project is paralyzed by financial problems of the customer. 2019 is therefore weak.The long-term potential is enormous, and it involves taking over the opportunity. The share has a long-term high risk / return profileAn interruption has occurred in the execution of the absolutely largest order made by Sky and Space Global for problems with their payments, but here is 20.5 million. SEK has just been received (covers the task with critical design review). The execution of the order remains unresolved and currently. covered by hope / fear. The consequence for GomSpace of the slowdown seems to be unexpectedly low activity in 2019 andthus a large deficit. However, cash burn this year is significantly lower than in 2018. In the short term, the company is thus exposed to headwinds.