Welcome to today's event where we have the pleasure to present GomSpace. To help us through today's event, we are joined by CEO Carsten Drachmann. To the topic of today, it's very clear here on the front page, is of course the full year figures and Q4 figures. You released preliminary figures, showed very strong progress in your transformation, and to me it also seemed that the whole set of figures actually showed the same result there. But I'm sure you will get more into that, Carsten. As always, you are very welcome to ask questions in the box down below. We have already got a lot in advance, but we will see how much we will get through to the event. But first, we will do the presentation and then the Q&A. But for that, I think I'll hand the word over to you now, Carsten.
Okay, Mika, thank you very much. Welcome back to many of you, presumably. We were talking also two weeks ago, so now I'm pleased to present the fourth quarter with all the numbers. I'm going to take you through the key highlights for the Q4. I will give a quick reminder for GomSpace, what we're doing, in case there are new investors also joining here, transformation status, and then a summary at the end. Okay, let's look at the highlights. As also communicated 10 days ago, we have positive free cash flow, really good, SEK 21 million positive. This is the first time in quite many years, actually, that we have a free positive cash flow. This is also what we've been aiming at all year, as communicated earlier. That is really good news. I'm also very pleased with SEK 61 million in the bank.
This is an improvement from Q3, where we had SEK 46 million. So we're actually more or less back on track where we were in the middle of the year, where we had SEK 53 million in the bank account. So we have actually improved our cash position during the second half. If you look at order intake for the quarter, SEK 102 million, this is actually also the highest in two years. The last one was Q4 2021. So we're trending in the right direction here. So Q4 has been a really good month for us, or sorry, quarter for us here. North America, we closed SEK 7.5 million of business in the fourth quarter. That was good. And the full year order intake is SEK 15 million, which is progressing forward. Our product order intake in total, including North America, in the quarter was SEK 39 million.
That is absolutely a record high quarter for product order intake. This is one of our key focus areas to build up our product business. Revenue for the full year, SEK 234 million. That is a record high for the company as such. The last time we had anything closed was SEK 214 million in 2021. Good achievement there from the team. Take a look at a couple of deals. We had the Startical deal, which is with a Spanish company. Remember, some of you have seen it before. This is about air traffic communication. It was a project that was stopped a year and a half ago, excuse me, due to some challenges with the customer and how the project was progressing. I am very, very pleased that we are back on track. We have a very good relationship with our customer.
We have signed a new contract to continue the project where we ended it. So we're actually continuing with some of the technology and developments there. This marks a, I think, it's a significant milestone in a sense that there were some open points in the previous contract. These are all now closed. We have agreed a settlement for SEK 16 million, which has been paid, and everything is done. There are no open points. We have focused forward on executing in 2024. So very pleased with that deal. Excuse me.
We also closed two opportunities or contracts on mission and control software, so-called HOOP software, that totaled SEK 27 million. This is good. Also, this is about developing our operations center software. These are nice orders from the Luxembourg Space Agency and also from the European Space Agency. So all in all, I think, very good quarter for the company.
We are starting to hit some of the targets we have set ourselves around cash flow. Let's go into a couple of details. Looking at the SEK 102 million order intake, as I said, actually, this graph doesn't even go far enough back. It's eight quarters ago. We were at more than SEK 102 million. That's good progress. We have SEK 38 million of revenue in the fourth quarter, but the full year, SEK 234 million, so the highest so far. EBIT in the quarter, SEK -26 million, still an improvement from last year, which obviously wasn't very good for a number of reasons. You see the EBIT is also trending up in the right direction. Still more work to be done, absolutely. I am not ignoring it, but I'm also very clear on we are focusing, first and foremost, on cash flow and getting profitable on projects.
The EBIT will follow. I'm not worried about that. It will follow once we manage our cash and our profitability. We are 126 employees, so we are actually right now trending a little bit below our target for the end of last year. So we are at this turning point now where we actually start to hire people. You saw we announced a couple of senior people that we have hired recently. I'll get back to that. But we have a very good cost base, and now our focus is to increase the staff. And obviously, we are expecting a continuous growth in order intake, which is going to require that we have more qualified staff. Let's take a look at the backlog, order backlog. Some of you may have read it and say, "Wait a second, they went from 409 to 157.
Is that good or bad?" Well, let me tell you what happened. First of all, we got SEK 190 million total order intake for the year 2023. Remember, actually, half of that came in the fourth quarter. So excellent fourth quarter, good trend. We cancelled SEK 218 million worth of contracts, which were not profitable. There were a number of them, but by far, the biggest one was CubeMAP with European Space Agency. We simply did that. We had a chance to end it there, and I couldn't see how we could continue this and be profitable at the same way as we have set ourselves as a target. It was a great mission. There's nothing wrong with it, great technology. I just didn't see that we could make the money that we are supposed to make. So we cancelled it.
So a very, very large portion is due to cancellation, due to lack of profitability. We have executed SEK 234 million in revenue, and there's some currency fluctuations, so we're ending up at SEK 157 million. This needs to improve. It needs to go up, and it will go up. But it's just to explain how we move from the SEK 409 million to SEK 157 million. We've actually done that through good decisions. So I'm comfortable looking into 2024 that we continue to increase our order intake and build our order backlog. Free cash flow, let's take a look at it. Very happy with the team here, +SEK 21 million. You can see the development in the last six quarters. So we are definitely trending in the right direction. We still maintain our guidance that we would be free cash flow positive towards the end of the year.
And you can say, "Hey, Carsten, why don't you already do that now?" So you have achieved your goal. Now, I want to be at it where we have a stable free cash flow situation. So it's a really, really good trend here. There will be some fluctuations, probably quarter by quarter going forward. We are building towards this free cash flow as something we don't need to talk about anymore. It is just there. So that's the situation I want to have before we move on to the next objectives. Okay, quick reminder on GomSpace. Who are we? Well, we have three main focus areas: subsystems and products, satellite programs, and satellite operations. I'll start from the back. The satellite operations is the software that is needed when you launch a satellite, and it has to do something.
You need to send information, unfold your solar panels, or turn left, turn right, take a picture, do this, do that. This is the kind of software that we have, which we are building up to be hopefully a world-class software that we'll see some revenue from into the future. We just closed some good contracts in December of SEK 27 million on that. We have satellite programs and products. Let's take a look at what it is. Let me try and make it a bit more tangible. Missions and programs, or satellites, if you like. We are building small satellites from 5-50 kilos, and they look roughly like this. There are many different variations of that, but this is really our core business. So when I talk about programs or missions, this is what I mean. We are building complete satellites. We put everything together.
We put it on a rocket. We send it up in space. It's opening up, unfolding. We start communicating with it. Customer is happy, and they continue with the service, whatever the service is, taking pictures, monitoring radio frequency signals, whatever it could be. So this is what we do. But Carsten, you talk about products. So what are products? These are examples. We have a lot of products, but just to give you a sense also for that. So when I say products, these are examples of modules that we are selling, subsystems that we are selling. This is product business. You can compare it to your laptop. If you take your laptop, there's a screen, there's a hard disk, there's a battery, there's a keyboard. These are all individual components, probably coming from different providers, being put together by the manufacturer of the laptop.
Same thing we do here. We do the keyboard, we do the hard disk, we do the battery pack, and we put it together into a satellite. So this is product business. And we are selling to. We're using it ourselves, obviously, but this is the business I'm talking about. I want to grow more, where we are selling it to a range of customers around the world, including our competitors, actually, who are building satellites as well. They also use our products. So now you know what that looked like. So diving into our history a bit, we were founded in 2007 as a company. We were listed at Nasdaq 2016. We have more than 17 years of experience as a company. But mind you, remember our two founders, Lars and Morten, who are still here, still going strong and really, really contributing to our success right now.
They launched the first microsatellite in the world, nanosatellite in the world, in 2003. So don't forget, they're world pioneers. They did it in 2003. They're still with us, and they're still contributing big time. This is a really, really big asset for the company. Behind me, you'll see our clean room. And we have 6,200 square meters up here in Aalborg. It's not all a clean room, but we have a pretty big clean room. You'll notice from last time, actually, we're shooting from the other side. And I'll get into in a second what you see behind me. But we have 75 space missions flown. We have more than 2,000 space-proven products per year that we are launching per year. So not just us, but all our competitors and customers. We are more than 50 years in orbit. This is important. This is called flight heritage.
We've done this. Customers come back to us because they actually know that it works when you buy from GomSpace. I think here we can also highlight Startical, which is the Spanish deal for the air communication with airplanes. They also came back to us. We had a very good way of working this out. They come back because we're good at what we're doing. Global footprint, we have customers in more than 60 countries. This is a lot. So it's not just about we sell a little bit here and there. No, no. We are actually present quite many places. And as you have seen, and I'm sure somebody will ask more about that, but there's more traction in Asia. We see that a lot. We see traction in Latin America.
We still have North America as by far the biggest market that we are trying to capture our piece of the market there also. But we have customers all over the world. So project examples, very exciting. Startical, I talked about that. We are so pleased that we are back in business here. We are now building a first demo satellite. It's called an IOD, an In-Orbit Demonstrator, right now. And then depending on how that is going and what the learnings are, then the customer will decide what the next steps are. But right now, we are the one developing this technology for the Startical, the Spanish customer. Then there's ESA with our Juventas program, which is part of the Hera mission.
The Hera mission is the one that's flying out to a meteoroid to observe and circle around the meteoroid to measure what kind of minerals are on the surface, etc. Just a fun fact, you can't answer so I can't ask like that, but it's flying twice the distance of the Sun. I repeat, twice the distance of the Sun. That is how far that our little spaceship from Aalborg is going to travel out. It's going to be on another spaceship called Hera. And once Hera has reached the orbit around this meteoroid, our little satellite is going to be launched into space up there and observe it. And oh, by the way, how long time does it take? It takes 2.5 years. 2.5 years from the launch, which I think is towards the latter part of this year.
2.5 years is flying. Then it's going to unfold. It's going to be super exciting. I can tell you, we're sitting out here. If it's working, you will see the whole office here clapping and yelling. This is really, really cool. I have actually over here, you see one of our engineers, Aldous, is sitting doing testing. So he's doing testing in this weird-looking tube. This is called a TVAC. This is for temperature testing. So we have to do all kinds of temperature testings up and down and see what's the behavior of the satellite, what happens to the electronics, etc. So we take that quite seriously. Our dear, dear customer, Unseenlabs from France, still going strong. We are delivering satellites as we speak. We received an order just a couple of weeks ago for another satellite.
And those of you who are following the news, you can go online and look at their LinkedIn page. They just closed, I believe, with EUR 84 million of funding for their next stage. Really good. Congratulations, Unseenlabs. We are really, really happy for you and looking forward to continuing our collaboration together as we have done for many, many years. And what you'll see here on the other side, you see two people. You can't really see it. Let me see if I can move a little bit here. Up over my right shoulder here, this is a degaussing. It's basically when the satellites have been put together, we need to take all the magnetism out of them so we don't have any false magnetizing or something that can disturb the electronics. So that's what's happening there. And this is actually for an Unseenlabs satellite.
Anyway, that's what we do as GomSpace, if you didn't know. Or maybe some of you knew, but say now it's clearer. And keep posting if you're learning something or something you want to know more about so I know what to say next time. Transformation update. Okay, I love this slide. I'll keep showing it to you. Change the headline a bit. Why invest in GomSpace? Well, why indeed? Well, the reason I invest my time with GomSpace is there's a very solid foundation for growth. Technology and people are in place. We have been doing business for 17 years. And I repeat again, Lars and Morten, our two founders, are still here. I think it's fantastic. It's so fantastic that we can continue to work with them, and they continue to be creative entrepreneurs and driving us forward. They're growing markets.
The CAGR for the market is 19.3%, according to Markets and Markets. So it's a pretty solid growing market. I don't think there's anybody who's in doubt about that the space market is growing. The trick is, how do you capture the growth, and how do you become profitable, which is now our objective. A global brand. We are known everywhere. We just had people in Asia the past couple of weeks for different conferences. Everybody knows GomSpace. It's so great getting out there, coming over. How are you doing? What are your next steps? Do you know any new products? So that's good. Customer evolution, I see a strong evolution on the commercial side. I think Unseenlabs, who are doing this monitoring of fishing, for example, and monitoring of ships, just raised another EUR 83 million of capital. Fantastic. There is, indeed, an interest in investing in this.
Remember, our customers are the service providers. So that's really important for us. I also see the evolution towards government, the sovereign state. Every country is going to need to have their own satellite systems of some kind, be it for safety, security, defense purposes, or simply monitoring fishing traffic, boat traffic, observing our environment, etc. I am very convinced that more and more nations are going to invest in this. Some are faster than others, but this is definitely evolving. Take a look at our journey since we were listed. I still call it crossing the chasm. So how to move from a startup phase where you grow, grow, grow. You don't make money till you continue to grow. You make money. That's the journey we are on. We have grown 23% compound average growth over the last how many years are that? 7 years.
It's actually a little bit better than the market. You see out at the end, said it before, that we have a very good revenue this year. EBITDA sorry, EBIT. It still needs to get better. Yes, I know. We'll be working on that. But as I said, right now, it's really about managing the cash and the free cash flow. And then we'll take care of the EBITDA over time. So setting the sales running into 2024, same focus. I think I'm five times now repeating it. I'm allowed to do it seven times to make sure everybody remembers. Cash and profitability first. This is what we're focused on. I've said from the very, very beginning, some of you might remember some title slides, clarity and accountability is really important for me. It's very, very clear what we're doing. This accountability, we know exactly where we're heading.
We have three focus areas for 2024. They have not really changed since the beginning: increase product business, expand in North America, and focus on mission and program profitability. Now, what we have done is we have divided this into so-called business units. So we are really driving an organization for each of these focus areas. So we have very clear focus and targets for each of the areas. And it's very much accountability in there. So who's going to do that? Well, let's take a look at the GomSpace executive team 2024. Some of you have seen the announcements we made earlier. I'm very pleased to welcome on board Henrik Kalstrup. He's Danish and previously worked for Cobham. And Oliver Schiewe, who is German, right now living in Switzerland. He will relocate to Aalborg and be based out here.
Oliver has a very long space background from RUAG Space, or Beyond Gravity, as they're called nowadays. So I think some two really strong hires here. Henrik has a lot of experience in product management. He will run the product business. Oliver, who has a strong program background and quality background, will run the programs to help ensure that we have customer satisfaction, we can deliver on time, and all of that. Profitability, remember. And then we have Frank Tobin, who's been with us for some years, who is a strong executive from North America, been in a number of different business areas, Thales as well. So Frank is running the North American business and right now building it up, more or less from scratch. We have a little bit of business going, but we are building it actually quarter by quarter here.
Thomas Pfister, our Chief Commercial Officer, full of energy, passed from Airbus. Thomas is doing really well now. The pipeline is booming a lot. He's done a great year, a great job since he joined in 2022. I think 2023 has been a lot of execution here from Thomas. Lars Alminde, one of our founders, Lars is going to help us with the strategy and business development. He's very focused on getting us on the right track. Right now, I say cash and profitability. That's it. Obviously, we need to have a bit more outlooking strategy. But we need to set the sales correctly, and we need to get the boat floating properly before we start running further. Troels Dalsgaard has been with us for many years as CFO. Then there's me. To me, this is clarity and accountability. It's very clear.
We have very strong leaders on each area that we want to develop in on. We have very clear targets for them also. I'm fairly confident and looking forward to execute with this team. This is a business slide. I just wanted to highlight what we said in April. This is a copy from the press release. You can go in and check for the Q1 2023. We're really talking about transforming the company to create a stable financial situation. We'll focus more on profitability and free cash flow. We want to reach a state where we are self-funded. We really want to make our own money and not look for money elsewhere, unless it's for larger strategic investments or other things that might benefit the investors and the company. Back in the day, I said product business, profitability, best fit, and expand North America.
That hasn't changed. You saw we made some decisions along the way, for example, to cut back on our backlog with projects that were not profitable. It was somewhat hurtful to cut out SEK 200 million, but it was worth it. This is a transformation. It's a journey. There are many steps to this transformation. It doesn't happen overnight. It's a process. We'll adjust the organization along the way. I just announced to you a new executive team, which is in place from the first quarter here. We will align ourselves around the key focus areas that I have highlighted. Agile leadership is important. We're going to navigate through this. The sales we've set now, I think, is the right direction. We'll trim them as we go along when we see what happens. In summary, positive cash flow, SEK 21 million.
Cash in bank, SEK 61 million. This is up from the middle of the year. So we increased our cash reserves during the second half and SEK 102 million in order intake in the fourth quarter. Record high. It actually is more than half of our intake for 2023. So that was very strong. And I have an executive team in place to lead ourselves forward. So I'm very happy. And thank you for your trust to those investing into GomSpace. GomSpace appreciate it. I hope you'll stay with us. And I am looking forward to 2024. Thank you.
Yeah. I mean, let's start with some questions, Carsten. The first one is you haven't mentioned Terma, but I have heard you talk about that earlier on. So maybe you can talk a little about the relationship with Terma and the opportunities you are working on, maybe, to execute with Terma.
Right. Okay. Well, first of all, I say that GomSpace has world-class technology for satellites to get the satellites up and flying. But a satellite network is not enough. You have the satellites. You need to have a ground segment. You need to have software. You need to have different operation centers with screens, etc. So we will work with many partners. And Terma is one of them. I think Terma is complementing well our technology. So we continue to work with them. I think other partners that we're working with is SAIC in the U.S. And we also now have ELIPS projects for our Indonesian project. So we continue to work with a range of partners. And I think there's a very good complement between Terma and GomSpace. And I think especially for Danish opportunities, also, there's work to be done into the future.
So the opportunities, you will mention Denmark. Is it too hard when you have those large partners to talk about any specific opportunity? It is more that there's a large scale of opportunities, if I should understand.
Yeah. Yeah. We all know. I'm not talking about specific opportunities into the future. I can only talk about what's here. But I can hint, hint. We talked about last time at the last call. Arctic monitoring of the Arctic is really important. It's actually Denmark's responsibility. I think there's some obvious things that need to happen with Danish industry in that direction.
Perfect. Then there's a little bit about the Indonesian opportunity and maybe something about the time frame in regards to final no-go or a go or no-go in Indonesia. So if you could talk a little bit about Indonesia and the time frame and what decides go and no-go.
Yes, I can talk. I'll repeat what we've already said. We've issued in the end of December the contract, the size of the contract, the content of the contracts that we have signed, our commercial. Those contracts are subject to financing. So Indonesia is looking for international financing to run the project. And I'm expecting an update towards the end of this first quarter. And as soon as I have the update, I will pass it on to everybody when I know for sure what is happening.
Then there's a question. Is the order intake on the product size you mean, the specific product size, has that continued in January, February? I know I'm asking you to state a little bit about the future. So you talked about a pipeline. You talked about good momentum. Is that how far you are going to go?
Yeah. I'm just repeating your words. Yes, I believe we have good momentum. I'm not going to comment on specifics that we haven't released in press releases. I won't do that. But let's just say there is momentum. Fourth quarter was really good. First quarter, often a little bit better. But a customer has budgets and needs to empty out. But we certainly see a continuous trend.
There's about the Startical. I think maybe you actually answered a lot of these questions in your presentation because you went deep into it. The main is the Startical. Is this a restart of the same project that GomSpace won back in May 2021? A press release was sent out back in May 2021 with the title, "GomSpace: Win Important Development and In-Orbit Demonstrator Product with Indra." He wants to ask, is this a restart of this project? I think you hinted at it by also saying that there was a settlement.
Yes. Yeah. The answer is yes. It's a restart. We are using technology that was developed back then. We are then working on finalizing. So it is indeed a restart. As I mentioned, I'm so pleased that we are back on track with our customer here. It's a great project for providing communication between airplanes, no matter where they are in the world. There's a huge demand coming from that. Spain is leading right now. We know in Australia, something quite similar is going on at the moment. You can Google and read about it. Different authorities are looking at having better communication for airplanes. So it is a restart. We are working towards completing the first test satellite and getting it up and flying. Then based on that, the customer will make further decisions on what to do next.
But obviously, we do the best we can.
In the question there is, actually, this is a test project, 2025. You have a satellite up there. And then in the old press release of the old project, there was a talk about that that could mean that there would be a much if GomSpace was choosing, the potential final order was much larger. Is it still the same? Do we still have the same feeling about this? Or is it correct what you stated back in 2021, maybe?
Feelings and emotions. I can give you all my feelings and emotions around it. I'm happy about it. I'm very pleased with the Startical project here. In order to build this communication network for covering really global coverage is what they're aiming for. It's not done with one satellite. There needs to be many satellites. How our customer decides to go forward, etc., I don't want to speculate into that. But just repeat, my emotions around doing this project is I'm very happy that we get to finalize the technology. And so are the engineers because we spent a lot of energy on it. And then we're happy to continue the journey from there on. But we'll see how that goes.
Then there's a question asking you to look a little bit into the future and maybe also guide a little bit more than you are allowed. But I will answer it. I would like to what kind of target GomSpace has for gross margin in the future? How profitable is it possible to become in the markets of nano satellites? So he's asking, what would be a realistic number? And he's not asking you tomorrow. He's asking you in the long run. Is there a good benchmark we could look at as investors? This type of industry, I guess you are one of the more mature ones. So it's hard sometimes to find something I would like to be benchmarked up against and say, "This is actually achievable in the future." So if you can elaborate a little bit on your thoughts on this.
Yeah. Kind of starting from the back, we are considering ourselves market leaders here. And as I'm saying, I'm very much focused on cash flow first. This is what we'll do. Once we have the cash flow improving and profitability going better, we'll continue to grow. Then we will also see a better EBITDA and EBIT performance coming out of it. A benchmark is hard. There are still a lot of companies who are investing and investing. And they've been able to raise capital. It's been a lot harder. It's been a lot harder in 2022 and 2023 to raise capital. So happy for Unseenlabs to grow the business. So it's hard to say. Few companies in this industry are making money. I believe going forward, focusing on making a profit now and become self-sufficient on cash is a winning formula. So that is my belief.
This is how I drive GomSpace. Benchmarking is hard because there's not a lot of benchmarks out there to follow. But I firmly believe that, of course, we can grow this business. There's no doubt. And of course, we can make it profitable. Yeah.
I know I probably you will not give me an answer because you are not allowed. But I looked. There is some maturity in the larger satellite space producers and that one or in the high-tech industry. So is your feeling that when this industry matures more, that you could look at high-tech margins or something like that in the more mature ones? Is that your feeling that that should also be possible in your industry?
Yeah. I think high-tech margins is perhaps a bit of an arbitrary statement. But we have two businesses. Let me answer a different way. We have two businesses. One, which is a contract business, which is what I call programs. And programs have a certain gross profit you can get out of it, a contribution margin if you like. You need to be competitive on the price for building a satellite, so customizations for the customer. And there's a number of risks, etc. So that is more to be compared with a regular project business, if you like. You can go out and look at what systems integrators, for example, around the world make on projects. The other side is products, where products we are defining more as we don't need to invest any engineering hours. These are the little cassettes I showed you earlier.
This is a different kind of business model where you will see potentially higher margin or rather higher volume. You can scale to a higher volume without hiring a lot more people. So therefore, in and of itself, it becomes a more lucrative business with better gross profits also.
Perfect. Then there's how do you differ from other firms, especially in regards to larger players like SpaceX? How come they are not just solely market holders?
Yeah. So with SpaceX, I think we mean Starlink. Starlink is a satellite network which is providing radio communication or data communication to Earth. This is Elon Musk's baby that he has built up. It's quite a different company. They are a service company. They're basically building the satellites themselves, I believe. And I could be slightly wrong on the numbers. But let's say there's probably 100-150 kg satellites. So they are somewhat bigger than the ones that we are building. They're purpose-built for the single objective to build a communication network under Starlink, under Elon Musk. It's very different from what we are doing. So they are the service provider of data. And they build their own satellites. We are building technology. We are building satellites.
We are selling it to the service providers of not so much data but more signal intelligence, Earth observation, radar imaging, environmental measuring, etc. That's quite different. Then we also have our deep space missions, which are very different in nature.
I will spare you because I guess the question is also, why don't they just do that business, the data providing, and don't produce them themselves? I will not have you comment on the company.
Well, I won't comment on it. I can't speak for Elon Musk, obviously, what he wants to do. I can say it's not so easy. It's not just saying, "Oh, we can do this, and we can do that." It doesn't quite work like that. You have to actually practice the very specifics of what you're trying to deliver. It's a somewhat different business model. Remember, a different size of satellites is different technology.
Perfect. Then there's a more bookkeeping question. How much of the order book is expected to be delivered in 2024?
How much of the order book is expected to be delivered? I can't give an exact number on that. But obviously, we are looking at we want to grow compared to 2023. You can look at our backlog, where it is at SEK 157 million. So we're delivering a good deal of that. I would say one thing, though, that the product business is really rolling quarter. We usually don't take more than three months to deliver. So we have to be careful when reading into the order backlog. I say, "Oh, it's very low." Yeah, yeah. But this is a quarter at a time for a product business. And remember, last year, we did SEK 95 million in product business. So we will see that rolling over the year.
It's a question of closing more of our program and mission business and capturing more activities in North America to reach our objectives.
Perfect. Then the last question, and I will leave you. I think it's a very important one. I know you have to go on. In which R&D areas do you primarily invest in at the moment? Because when I looked at you, you indicated that, at least in the cash flow statement, you hadn't put so much on the balance sheet of your R&D. I know you have a focus now to be profitable and cash flow. I guess in the type of your company, you also need to look 10 years ahead. You need to balance that.
Can you talk a little about where you invest and maybe the comments in the reporting about not so much being there in the cash flow and, thirdly, maybe making sure or ensuring us, investors, that you also have the look 10 years ahead and are ready for that development?
Yeah, yeah. Absolutely. I can comment on that. There's some good reasons for why there's less. It looks like there's less investment in the reporting. So first of all, yes, we do have visions about the future. There's a lot of statements about the future. I just go back to say, cash and profitability. This is where we're starting, unless we have to go out and raise a lot more money from the investors. That's not the objective. We need to be able to stabilize the boat, as I've said, get the cash flow going. Then after that, we can start looking at major investments. However, we are actually still doing investments. Our whole product business, where we have. You can read some of it in there. We have about 18-20 people sitting doing product development. We are actually expensing that.
It's a bit back to the good old startup days, venture capital way of thinking. We're not using our balance sheet right now for investments. They are actually built into our P&L. So it's not like we're not investing. We are investing in our product portfolio and developing that. The other side is that right now, because we are focusing on the cash flow, all our programs, bigger development programs, are together with customers. So they will not go on the balance sheet except for work in progress. But they're not going to go in as R&D assets afterwards. So it's a bit of a change also from the future, where there's been a mix between customer programs and R&D to the balance sheet. And products has also been an investment. We don't do that right now.
It's a very clear purpose to we want to tone down the balance sheet a little bit on not having two big R&D assets. We're expensing it as we go along, which obviously is also hitting the EBITDA and the EBIT. This is on purpose to secure the cash flow.
Perfect. And there is someone a little bit you talk more and more about supervising in the military contracts. Do we have anything in your policies that makes sure that it is that it's not used for harm, you might say, or might say that how I guess a company always needs to go into that types of contracts have to have some thoughts about if that would be a business area. I don't know whether you can give any thoughts about it.
Yeah. I can give a hint too as what we're doing. First of all, we are under export control regulation. So it means whenever we export something, we are always checking to whom. And we are sometimes saying, "No, we get requests." And we are not a political organization. We have no political agenda. So just to be clear on that. But there are from certain countries where we get information in relation with our export checks that don't do that or information that doesn't fulfill our values and requirements. We are working with different organizations within, let's say, intelligence agencies. Let's just call them that, where we are interacting with them to understand if there's something we should be mindful about when we're selling to a specific customer or a specific country. So we do have some processes in place.
Perfect. I will let you go now, Carsten. Thank you for taking us through your results. There was also a spaceship going up from you and saying it's nice to hear you talk. I agree. I think the slide you showed us there with what you said when you come. You walked the talk. That's always what investors like to hear. Thank you for that, Carsten, taking us through your results. May everybody have a nice day.
Thank you, Michael.