By being first to build large constellations, GomSpace is getting up the learning curve and at the same time getting down the cost curve. GE's bid valued Arcam at SEK 6B, roughly 9x group sales although the company had won very few volume orders at the time and was struggling to break even with poor gross margins due to under-absorption of manufacturing costs. In many ways you can argue that GomSpace should trade at a premium to manufacturers of additive equipment. Is very exact altitude determination required? No doubt, there will be massive value created using nano satellites to deliver data and new services. Such projects would most likely be worth several hundred million SEK if not billions and have a global reach. Satellite management is similar to the metal powder business of Arcam from the perspective that it gives after-market revenue.
Satellite operations is a big revenue opportunity and by having this capability, GomSpace is moving up the value chain and at the same time lowering volatility in future earnings.
GomSpace: On your marks, get set, grow!
The company has moved to a 6. On your marks, get set, grow! This is not an easy task since all satellites are created differently. Estimates of future revenue are my own. Executing a spin-out strategy No doubt, there will be massive value created using nano satellites to deliver data and new services. Constellation customers will be repeat customers assuming they are successful in building their businesses.