Welcome to the Ovzon Q2 report. For the first part of this call, all participants will be in listen only mode, and afterwards, there will be a question and answer session. Today, I'm pleased to present Johan Brandt and Per Norén. Please begin your meeting.
Thank you, Lukas. Good morning, good afternoon, and good evening, and Welcome veryone to Ovzon's Q2 and First Half of 2022 Interim Report. Thank you so much for joining us. We're very excited to present and talk about the business, and we welcome you all to actively participate with questions after the presentation we will give today. My name is Per Norén. I'm the Chief Executive Officer of Ovzon, and I'm joined today by Johan Brandt, who's our Chief Financial Officer. We're actually in two different places. I'm in the United States of America, and Johan is in Sweden, and that's how we operate this global business. We need to be like nomads, where the customers and our people and our partners are, we are. Without further ado, let us dive into the presentation.
First of all, one might ask the question, who is Ovzon? Well, first of all, we are the world leader in mobile satellite communication. We offer the world-class advanced mobile telecommunication solutions, what we call SATCOM- as- a-S ervice, to mission-critical customers around the world, predominantly in the government, emergency, humanitarian and NGO sector, but also to media broadcast and commercial organizations. Our vision is to revolutionize mobile broadband via satellite by providing global coverage with the highest bandwidth through the smallest terminal. We're a Swedish company. We were founded in 2006. We're listed on Nasdaq Stockholm Mid Cap, and our main operations, as noted, is in the United States, Sweden, Italy, and the United Kingdom.
Historically, we've had a couple of major customers in the United States, in the United States Department of Defense, and you can see on the upper right corner what our revenue base has been through the since 2018. You can now see that we are starting to move towards a much higher drive for profitable growth. You can see that our rolling 12 months, meaning the last 12 months until now is on a path towards SEK 298 million. We'll come back to CapEx a little bit later in the presentation. What's Ovzon solution and what stands out, and what is the uniqueness of Ovzon compared to other providers? Well, first of all, there are four components that make up a unique solution and capability today.
Number one is you have to have a very, very strong ground-based mobile satellite terminal that is designed, developed, and used so that it can quickly connect to the satellite and get a highest performance, resiliency, and mobility for those that actually need it. Number two is I would say this, we design, develop, and deliver those terminals ourselves today. Very few other providers, if any, actually have that capability. We've designed a network of satellite capacity, number two, that we then manage. Today, that capability and that capacity is acquired. We buy capacity from other satellite providers.
In the future, as we will come to, we will have our own satellite with very, very unique feature, which I'll touch upon in just a few minutes here as well. We will have a network, global network with capabilities that are both our own assets as well as leased and acquired assets. Number three is to have a secure gateway, because to get connectivity via satellite, you have to connect to the ground, obviously. We do not own that, but we are very selective and focused on having the right partners when it comes to the secure gateways. We have a few selected partners around the globe that provide that gateway and teleport capability.
The fourth component, last but not least, I would say, is how do you manage this integrated solution and the unique offering for the highest guaranteed performance, resiliency, and security and mobility? Well, we have our own team, our own network operation center that serves and manages the network, the terminals that are turned on to the network and uses the full capability of this. That's why we've been, for a number of years, the leader in advanced mobile satellite communication. Now, who are our customers? Which markets are we operating in, and how do we actually go to market? There's a lot of things on this slide that could be touched upon, but let's first focus on who is in need of what we do today.
I think in the future, there is a need for consumers. Right now, we are the predominant market leader when it comes to mission-critical operations. They can be found, obviously, in government and defense. They can be found in emergency and rescue services, in non-governmental organizations, humanitarian organizations, in media and broadcast, and in commercial organizations. If you look at our key customers, for the last eight years we've served the United States Department of Defense and some very specific units within the United States Department of Defense with guaranteed uptime and connectivity for any critical mission they have around the globe, basically. Also, the UK MoD.
What they're looking for is guaranteed uptime in areas where there is no infrastructure or limited infrastructure, might not even be electricity nor anything else. They have to rely solely on Ovzon SATCOM-as-a-Service to operate. We've had them for eight years, and we have UK MoD for a number of years as well. As last end of last year, we got the Corpo Nazionale dei Vigili del Fuoco that today operates basically with the wildfires that are in Northern Italy and Tuscany. There is no other way of coordinating those emergency and rescue missions without using Ovzon SATCOM-as-a-Service. We'll come back to that deal in just a minute.
We've also been active with the United Nations in parts of the world with humanitarian efforts like population counting and trafficking and other kind of things that they are involved in. There is no other infrastructure, obviously, in parts of the world, and they use Ovzon SATCOM- as- a-S ervice. We also recently helped the Colombian government with the presidential election, meaning in areas of Colombia where you have to register voters that have no infrastructure or there's limited infrastructure, we provided that infrastructure and service for them. We've also worked with a number of media and broadcast units, one of them being in Italy, TV station RAI. How do we sell? We actually do sell and distribute our service, our integrated service, through world-leading partners.
You can see some of them here. Airbus, Bansat in Colombia, Gomedia in Italy, and Intelsat for the U.S. Department of Defense and other customers. It's very important to understand that even though our partners are very, very strong and have a very strong footprint in the countries and the region they work, our sales and account management organization is actively working with our partners and with the end users so we really understand what the real user of our service needs and what they want and the requirements for it. It makes us better. We continue to innovate, we continue to develop solutions, so we stand out compared to any other competitor in the world. That's O3 in a nutshell, from the get-go. There are more things to talk about.
I'm sure there are some questions on it, but that's who we are. We're market leader. We're driving a very strong case for growth. We're taking market share globally today. Let's turn over to the interim report from January to June 2022. I will hit some highlights, and coming to a key feature around O3 our own satellite, and then turn it over to our Chief Financial Officer, Johan Brandt, to talk a little bit more in depth about the numbers. What's critical for our business obviously is to continue to serve our customers that we have today with the core service that we have. Lukas, it's jumping back and forth there a little bit, the slides, but we'll see.
It's very important to continue to renew with the current customer base we have. That's sort of our base subscription for our revenue and for our service. I'm very pleased then to say that we during the quarter renewed from the U.S. Department of Defense our SATCOM- as- a- Service, one of the components of it. The other thing that actually happened was that we at the end of last year won the Corpo Nazionale dei Vigili del Fuoco, actually on the 31st of December 2021, and we in just three months managed to set that up, work with our partner Gomedia, set that service up and started to deliver that. That's why the Corpo Nazionale dei Vigili del Fuoco can be so effective.
That's part of why the numbers look very strong for us on net sales, because we sell and we get a contract, and then we are very good in operationalizing those contracts into a direct service. There is a great need for the kind of service we have, but I would mention this. We've been extremely engaged with a lot of the organizations, whether it's in government defense, rescue and emergency services, public safety, NGOs or humanitarian organizations around the situation in Ukraine today. I would call upon and say that we are not really equipment that you take from the shelves and sell like other military and defense contractors that would sell, you know, or ship equipment to Ukraine. That's not what we are.
We become a very important strategic partner in understanding how you actually become an integrated part of the whole coordination, logistics, communication and drive for that with them. There's an educational process, there's a training process, there is a demonstration of our capability process, and we've been extraordinary active with all of those that are working around basically the Ukrainian situation. It's worth to note that no one else, whether it's NATO or other organizations, are actually in Ukraine, but they're organized around the area where the situation occurs right now, whether it's government defense, as I said, emergency or NGOs.
One of the key things that we did during 2021 that have served us very well this year so far in the first half year is we moved from our own basically assembly of our mobile satellite terminals to a partner. That partner is Syntronic. It's part of our industrialization effort, and we drive and continue to improve delivery capability and have much more inventory and strength of mobile satellite terminals today so we can quickly turn on the service for any of the organizations that are now keen and interested in that. Last but not least, we also renewed again, it's very important to renew, expand, and extend the current services we have.
We have a significant order from the UK MoD, a little bit longer order, 18 months instead of 12, which was anticipated because of, I think, the needs that are there in the marketplace today. Very strong from an operational standpoint and delivery standpoint, and the renewals have been very strong as well. Let's turn the attention to our own satellite, Ovzon 3. Those of you that have followed us, you know that the satellite obviously is delayed from its original plan. It has foremost been because the key components were not available during the COVID time period or pandemic and so on and so forth. We obviously are not doing the production and the final assembly of the satellite ourselves.
We've chosen one of the top production partners and OEMs for satellite, Maxar. Obviously it's them doing all this work. Of course, we work very closely with them, with our project team, et cetera. I am pleased to announce that the key components, one of them being what's called reaction wheels from Honeywell to Maxar, have delivered. The solar panels, which you can see on the picture here, are delivered, and our own development of our onboard processor, which is the world's first and industry first unique communication platform on the satellite with very unique capabilities where you basically can connect a mobile satellite terminal.
If the teleport is shut down or not working, you can use the mobile satellite terminal as a hasty teleport, and you can actually communicate between the terminals, which no one else in the industry have. There's a fantastic, unique capability that we're eager to get up in orbit and be used by our current and new customers. That's been developed and delivered, and it's integrated on the main payload on the satellite. We are actually, Maxar actually have all the components they need. We're entering final stage of integration, assembly, and testing, with final test, including what's called TVAC, Thermal Vacuum Test, during the fall here. Now, It's hard to predict exactly. Things will happen.
These are advanced technologies, et cetera, but we have total line of sight with Maxar on what's going on with the satellite, and it points towards now the launch, a launch between December and February, December 2022 and February 2023. Our partner there is Arianespace, who's one of the most prominent launch providers, obviously, in the world. There's a lot of final assembly, testing, logistics, and planning and coordination that needs to occur. Obviously, we work on this 24/7, day by day, but we're seeing a line of sight towards that launch. Then, of course, when it's launched, it'll take up to four months for the satellite to be in orbit and then ready to be used by customers in our network then.
I think it's worth looking a little bit at the order intake and the order book. Listen, the first half year of 2021, as you can see here on the quarterly, we didn't take a lot of orders, but we did have our core basic service there, obviously, for that. Now I'm talking 2021. We had a very strong second half of 2021, where we both renewed the core services for U.S. DOD, but we also extended and added on parts of new networks to the U.S. DoD. We had a very strong growth on that core customer base.
On top of that, of course, as I mentioned earlier, on December 31st, we won the Italian Fire and Rescue Service for a steerable beam with all our mobile satellite terminals and a full integrated service that they are now in full use of. Of course, that then, if you have a strong order intake, you then turn that service on, and it increases the service. You can look at these graphs and do your own analysis, but it's actually the core service, excluding terminal sales, which we sometimes do directly as well to some of the government customers. We've really had a strong last half year, and we've turned that service on.
We have, as you saw on the previous slide, not had any major new deals, but we've renewed essential customer contracts in the first half of 2022, and we look forward to continue this drive with all the discussions we've had in the second half of the year, obviously. You can see that during the last 12 months, we've had a $33 million order intake. Sales cycles are long. There's an educational process, there's a test and demonstration process in doing that. In all, I'm very pleased to report that the order intake has turned into net sales and revenue and will continue that strive, and that service revenue will continue to build up as we move forward.
With that, I'll turn over to Johan Brandt.
Thank you, Per. If we start to look at the second quarter, the net sales amounted to SEK 77.9 million. Compared to last year, we improved our EBITDA result with SEK 25.5 million to report a loss of SEK 3.4 for the quarter, compared to a loss of SEK 28.9 million in 2021. Compared to the second quarter 2021, the strong growth of 135% is supported by currency movements. We saw a stronger US dollar during the quarter, but note that 96% relates to an organic growth driven by deliverables on new services that we signed back in Q3 and Q4 last year. If we look at the year-to-date figures, we report total net sales of SEK 177.8 million, versus SEK 70.3 for the first six months.
The growth of 153% versus last year is driven by additional deliverables of new SATCOM services and sales of terminals amounting to SEK 40 million in the first quarter this year. If we look at the gross profit, gross margin, and the EBITDA, the higher utilization rate of leased capacity during this year has significant impact on our gross profit and EBITDA. Year to date, we improved our EBITDA result with SEK 41.3 million to report a loss of SEK 16.6, compared to a loss of SEK 57.9 for the same period last year. If we look at the balance sheet and our capital expenditures, we have invested a significant amount over the last three-four years in our own satellite, Ovzon 3. The aggregated total investments since 2019 amounts to SEK 1.34 billion.
In the second quarter, we made an additional drawdown from our credit facility of $10 million. This drawdown has improved our cash position for the upcoming payments related to delivery and launch of our own satellite. If we look at our cash balance, our cash at the end of June amounts to SEK 390 million, and our long-term interest-bearing liabilities amounts to SEK 459 million. If we look at the equity ratio, the equity ratio end of June is 73%, and total assets are now close to SEK 2 billion. With that, over to you, Per.
Thank you, Johan. Yes, I think obviously we're very excited about the first half year of 2022, and I think it's worth noting that our business model and our technology and development model actually really works. Our current customers are, I'm happy to report, very pleased. We work with customers, again, if I summarize, that have very critical missions. They need guaranteed uptime, they need guaranteed connectivity, they need guaranteed performance resiliency. I think it's worth noting that this is not easy to do. If you don't control the aspects of this integrated solution, you can't really guarantee that. I think we are in a very unique position to continue to drive the profitable growth as we move forward.
As I said, the service revenue that Johan also touched upon and I touched upon is the very important indicator of if that works. You take new orders, you expand it with current customers, you get new customers on, you increase that. Obviously, the mix of own and leased satellite capacity, I think I'll give very much kudos to our organization. They are very good in acquiring satellite capacity at very competitive prices. So we are. We're good, we're cost-conscious, and we work with good partners, right? Obviously, when our own satellite, Ovzon 3, becomes operational, we can both add additional capability and capacity and uniqueness with the onboard processor. We can also switch out some other some of the other capacity that we have contracts on, because that's how we've set our business up.
We'll have an ability to mix and match in the network and drive even further performance of that. In summary, going forward, we have a strong stride in our step going into the second half of 2022. We're very pleased obviously with what we have been able to accomplish in the first half year, but we are not resting on our laurels. We are really active in all the dialogue. I think we're uniquely positioned with many organizations that we're talking to. Sales cycles are long. It takes time, but you have to play the long game if you're gonna be the market leader by all measures, which we strive to be. We continue to strengthen and develop our organization.
We've had some key recruitment, both specifically on the technical side and service delivery side. We can see evidence of that that has helped us move to where we are in terms of development and delivery and industrialization. Of course, last but not least on that, we're working very closely with our partners, but it's really in their hands to do the finalization and testing and launch of our Ovzon 3 in the time period that we've now been given by our launch partner, and Maxar is working hard to deliver towards that timeline. Last but not least, I would like to thank all of our employees.
We have a saying, or I have a saying, "Customers First - People Always." Even though this is a very high technology business with a great deal of focus on our customers come first, we're very close to them, but it wouldn't be anything without the people behind it that do it, whether they are our own employees or our partners and other stakeholders that are critical to us. I would like to thank everyone that contributed to this first half year. We're already in great strides, as I said, towards the second half of the year. This is the first of the webcasts that the company has had, and we'll continue with these every quarter. From myself and Johan, thank you for joining, and we are now open for questions, Lukas.
Ladies and gentlemen, if you have a question for our speakers, please press zero one on your telephone keypad or put it in the text box in your webcast window. Please hold until we have the first question.
Lukas, I can go first here. We have a question on the chat side. I'll take that first, and I'll read it so everyone can see it. It says, "Having your own satellite operational will give you, unimpeded gain from traffic rates as opposed to rented capacity as today. Can you hint on gearing here how many more times net income from own versus rented capacity?" It's a very good question. I started to hint a little bit on it. Obviously, we don't do any predictions of that and go towards that.
Obviously, first of all, since we control the operational cost of that, we have some fixed cost obviously for it, but we can actually gear that and then mix both take on new customers on that capacity and capability that we believe are unique and premium, and we can also get premium price for that versus more ordinary based capacity. Secondly, so that's new. Secondly, we can switch out those contracts that we already have mapped out, that we can switch for this capacity. It's a mix and match of utilizing our premium capability and capacity at a premium price towards customers and then switching out the others. There is actually two layers of things that we're doing here, but we can't really hint towards on that much.
That will drive an improved kind of net income for us. Obviously, that's the reason. I mean, there are several reasons for Ovzon 3 and for our own satellite: uniqueness, capability and capacity driven by customer requirements, a premium offering that no one has today with the on-board processor, and then of course, we have much greater flexibility with mixing and matching own and leased capacity. I don't know, Johan, if you want to add something, but that's how we have strategized, and that's how we're gonna use that capability. Lukas, back to you. Are there any other questions from the webcast?
Yes. We have a question at hand from Mikael Laséen. Your line is now open.
Yep. Okay. Hi, guys. Yeah, I have a few questions. The first one is about the comment in report that you say you're more certain in the sales guidance for 2022 and say that you expect significantly stronger sales. What has happened during Q2 that makes you more confident?
Thank you, Mikael. Hey, good to hear your voice. Well, what has happened, I think, if I'm just gonna repeat what I hope came across in our briefing is the new orders that we took during the second half of 2021 is actually turned on live, which means you can see that on our revenue numbers, that basically the first half year is at SEK 177 million and the first half year 2022 is SEK 177 million in revenue, and that fueled. The full year last year was SEK 191 million. We're in essence almost on the same level, and we'll continue to have that higher service revenue coming from those services that we have turned on today already.
That in itself just says that we will beat the revenue that we had last year and essentially get stronger. That's what's happened. Now, we do have a viewpoint on that, also that the future holds that we're not standing still. In essence, we're banking that fully, Mikael, on what we are already producing today and will continue to produce per month of those service revenues going forward. Johan, do you have any comment to that?
No, I think you are exactly right, Per. I mean, based on the fact that we started Ovzon 13 April first to be delivered to the fire brigade, and it has been up and running for three months, we are already by end of June close to the year-end figures for the full year last year.
Okay. It's more that the contracts have started very well and it's not directly related to maybe end customer demand being stronger at this stage?
That's correct. I think you must the service revenue from the core service are turned on and it's being, you know, month by month, it's adding on top of what we have had. That is based on that. Absolutely.
Okay.
That's the projection. Absolutely.
So, so this, uh-
Yep.
Italian contract, is that fully utilized from day one, or is it a gradual ramp up, and that will continue somewhat on the same pace that you end the quarter with in the second half, if you know what I mean?
Understand what you mean. Johan, do you wanna answer that?
Yeah. I mean, I think we discussed this Italian fire brigade contract we signed end of last year, and it's gradually ramped up over the contract period. It will continue to increase over the coming quarters. The revenues for the third quarter this year will be slightly higher than the second quarter.
Okay, good. Good to know. I'm a bit curious about the terminal sales that you had in Q1 this year, and what that sort of tells us about demand and, I mean, satellite capacity.
Yeah. Obviously, we had this big order from the United States Department of Defense of 50 Ovzon T6 terminals that we managed to deliver during the first half of this year because we managed to actually work through our industrialization and with our production partner, Syntronic. We're very pleased with that. We've then continued to develop terminals there. We have a bit of inventory, so we can be very rapid when potential new deals are coming to us or requests are coming to us. Normally, the business model goes like this, that the terminal goes into the kind of lease, the service deal, they're bundled into that, to that and priced into that. It's an integrated solution.
Some organizations and customers, like the U.S. DoD and other departments of defense want to buy the hardware or the mobile satellite terminal directly. That's why we are also building up somewhat of an inventory, so we can actually both deliver on those as well as the bundled-in service. Obviously for us, the more terminals that are out there in the marketplace, the more the need is for the integrated service. We're always out talking to customers and showcasing the unique capabilities of the Ovzon T6 that we have now and looking into what the future holds for that. We can't really give an indication on if there are many more terminals being sold, et cetera. Those will be announced as we win businesses, so to speak.
That's how clear I think I can be, Mikael, on that.
Okay. Yeah, fair enough. I have a few more questions, if it's okay.
Go ahead.
Okay, good. You have one antenna on the IS-39 not yet utilized. Can you explain and elaborate on why this is not yet utilized, and say something about the customer interest and demand for this?
Yes. I'll try to do it fairly short. Obviously, you're touching upon the question on the strategic investment we made in actually buying capacity early to have that available in order to be able to deliver quickly to customers. Those are steerable antennas. They're steerable, we call steerable beams, which have a higher energy and high power, and they have a steerability. Those, within an hour, can be moved to kind of to be directed to a certain region. They're very sought after by organizations, of course, that need that kind of movement and they, where they shift regions or parts of where they are.
That's why we did that and of course, it has an economic impact for us that we bought that capacity and if it's unsold, it's a cost that we carry without getting any revenue for it. Just explaining to the rest of the crowd maybe why you're asking this question. First of all, I would say, you know, there are not that many organizations today that would base their service or buy a service on the full beam. If you look at the Italian Fire and Rescue Service, they made a strategic choice to do that with what we call Ovzon 13, which is another of the steerable beam from the Intelsat capacity that we bought.
There are not that many organizations that maybe have you know, $7-$9 million depending on the capability of each of the beams to go for that. That's where the sales cycles get a little longer. Now, is there a need for it? Absolutely, there is, and we are working with a number of organizations to that have that need, that needs to get that into their both budget cycle and investment cycles, et cetera. That's what we're looking at because it's a wholesale model, not a retail sales model of capacity because the organization that want to use this wants to have the, you know, wants to decide where they want to steer the beam towards. We have to play the long game. There is a need. There is an interest from a number of organizations.
We're working closely with them on this, and it takes its time. It's government procurement processes as well, in most cases. I'm positive that there will be that we will be able to do something, but it's very, very difficult to predict when. The company made a strategic choice to have this capability. It was the right choice. It is going to serve us well in the long run, but it is costing us money, obviously on the bottom line, as long as we carry that without having a buyer for the capability. I don't know if that answered your question, but it's kind of explaining the long game we're playing here. That also goes into Ovzon 3, obviously, as well.
Yeah.
And then back to-
I just wanted to continue with the question on Ovzon 3, if I may. You made a comment in the report that the pre-capacity agreement was adjusted a bit. I don't know if that is relevant. I don't think so. But I was wondering if you can discuss how we should think about capacity utilization of Ovzon 3 initially, the first two-three quarters, and how we should think about the order cadence for that if the satellite has to be operating, I mean, four months after it is in orbit. If maybe then that you can get your first orders or if that is coming maybe at an earlier stage. Maybe you can elaborate a bit on those areas.
Yeah. I'll
That'd be great.
Thank you. Yeah. I'll elaborate shortly on it. Government contracting is working in the following way. They can't really sign a contract for something that is not operational. The satellite will be operational four months after it has been launched, right? You are right that that's when the first kind of use and delivery and use of that capability can be used. Actually, launch doesn't mean necessarily. Well, it doesn't mean that it's fully there from the beginning. That can be used for delivery. That's number one. Number two is, they can't contract before that. Number three is obviously we're talking to a number of customers, current and new, on the uniqueness of Ovzon 3.
There are five steerable beams with very high energy and density, steerability is faster than anything else can provide flexibility. The biggest thing I think is our On-Board-Processor that has unique capability, as I've mentioned before, to be highly resilient and secure. In today's environment, if you look at the situation in Ukraine and in other places around the world, that is becoming not a nice to have. That's becoming a must-have, and no one else will have that capability in its solutions, basically. That from an economic standpoint, as you say, we can't really sign contract. We have the pre-capacity agreement. I can just mention that. That's just. That is Intelsat General Communications, the government kind of leg or unit out of Intelsat.
They've ordered it because some of their key customers they know will want to use the capability, right? Because of the delay, as mentioned in the report, there is in that agreement just the milestones that says it will be reduced by X and Y. We mention it because we want full transparency to the market with all of that. We're not worried about the demand or the interest in it. I do not think our partner is either, but that's up to them to answer that question. I think that answers the question. Government contracting can't buy something that is not, you know, actively a product or a service out there. You're right in your assessment that four months after launch, that's when the first kind of contract and delivery of a service from Ovzon 3 can occur.
I hope that answered your question. Maybe long-winded, but that answered your question. Yeah, that was great. Thank you so much. Thank you, Mikael. We have a few more questions here. I'll grab the first one. It's from Marceline. Are you in need of a rideshare still as Eutelsat launch will be taking place in September? Listen, it's a good question, Marc. Of course, we're in need of a rideshare, but that's really up to our launch partner to find a rideshare. So that's up to Arianespace, and I believe that they have alternatives for us, and they are pairing us up with someone that fits our mission as well.
The good thing with Ovzon 3 is it's a lighter, small GEO satellite, so it fits with many different other satellites, and it's not that difficult to be co-passenger with. That's it. It's Arianespace who's working on that and mixing and matching so that it fits the launch manifest that they have with us and others. We're not worried about that. Eutelsat is going to be launching here in September. The next question is from Greg. Are there many customers that doesn't buy right now since they wait for Ovzon 3 being operational? I wouldn't say so, Greg, at all.
I think there are customers that are very intrigued by Ovzon 3, but listen, we are not dependent on Ovzon 3 to continue to win business and advance our positions with current and new customers. We have current capacity that we have acquired, Ovzon 11 and Ovzon 13. Ovzon 13 is now used by the Italian fire brigade. Ovzon 11 is still unsold, so we have capacity there. We also have the capability to buy new capacity or other capacity, which has strong geographical coverage and strong performance. We're not really dependent from a revenue and growth perspective on Ovzon 3. I think where the uniqueness comes in is with the on-board processors as such, specifically for government customers.
I think we feel very, very good about where we are with Ovzon 3 now. We feel good about where we are with other capacity. It is not really holding us back. Next question comes from Marcus Lindahl. How big do you think the chances is that Ovzon 3 finally launches? That is a broad question. I will answer it that Ovzon 3 will obviously launch, right? I am not an expert on satellite manufacturing, nor am I an expert on satellite launches. I can just I've been in the aerospace industry basically my entire career. I've been at the big OEM, The Boeing Company. I've seen big programs and, you know, final assembly, final test and delivery. It is not an easy task. There are many pieces that needs to work together. Test and mission-critical testing is essential.
It's very important. We have very strong partner in Maxar. We have very strong partner in Arianespace. We have a very strong team ourselves that are working around the clock. Ovzon 3 will launch, absolutely. We have to refer to our partners as well in the work they do. We have line of sight of everything that's going on. Ovzon 3 will obviously finally launch, absolutely. Next question is from Luis Sandoval. Does Starlink services pose a threat to Ovzon's projection? Thank you for asking that question, Luis, because that was something I maybe wanted to brief but didn't do. We do not see Starlink as a threat.
For those of you that are familiar with what Starlink is doing, they're actually using smaller satellites, many more satellites at Low Earth Orbit called LEO satellites. Low Earth orbit, there's also mid-Earth orbit, and there is Geostationary Earth Orbit, GEO. We're in the GEO segment, which has very strong energy and capability as we talked about. The low Earth orbit satellites are many more, and you have to have terminals that actually track and switch between those low Earth orbit satellites. Starlink is foremost focused on consumer internet via satellite or consumer connectivity via satellite. I think obviously there might be some commercial and government organizations that might be interested in that, but it's not really the segment we're in. We'd rather see Starlink as a complementary in the future.
I believe we will see LEO and GEO combined networks in the future. The trick there is you need to have a mobile satellite terminal that can actually utilize both the low Earth orbit satellites and the geostationary satellites just as Ovzon 3 will be. I believe that is in the cards of the future. Yeah, where you will have LEO and GEO combined networks and where the GEO network will be used for those organizations with mission-critical missions, such as the customers we have. We feel very strongly that Starlink is not a threat. It's complementary. We also see that we carve out our niche and our market position with those organizations that needs guaranteed high-performing mobile resilient satellite communications.
I think that's why you see such a strong result here, because we have customers that do that, today. The next question. I'll take another question here before I think we have to round up. The question is, do you have components enough to be able to deliver terminals the coming year? Yes. I think as we alluded to, we have switched from doing our design, development, assembly, and delivery basically on our own with a smaller production partner previously. Now with the greater need, bigger customers, and the expansion we have, we shifted to our partner Syntronic to develop more professionally, do production and development and production of satellite terminals and build up inventory so we can deliver.
We do not see that we have nothing holding us back really on the mobile satellite terminal side in order to deliver our service. One should understand that first and foremost it is about that integrated service, SATCOM- as- a- Service, that is, Ovzon's uniqueness with both the network, the terminal, the managing the network and the teleport and the gateway. We don't see that holding us back at all really from that. Maybe I can end with a question here I see. Say something about the satellite industry consolidation. I think that's a good note to end on in the going forward position. Yes.
The satellite industry has talked for a long while about industry consolidation, and it's foremost talked about what's called vertical integration, meaning satellite operators, those that design, build, have satellites built, launch them, and then they sell capacity, bandwidth or satellite capacity. That's been talked about that they need to get closer to the end customer and end user by vertically buying someone that is close to that. Of course, that has happened in certain cases, but it's not happening. It's also horizontal consolidation that is going on. An example of that is Viasat merging with or acquiring Inmarsat.
These are two gigantic satellite operators that are not predominantly focused on the service, the end service to the customer, but selling bandwidth and capability right to the industry and to users. We buy capacity from some of these providers. I don't see that as a threat. I see that as a great opportunity for Ovzon to continue to carve out its market position. We know exactly what our integrated solution is. We know what our uniqueness is. We know the customer base that we're focusing on, the ones that I mentioned before, government, defense, emergency and public safety and rescue, non-governmental organization and humanitarian and other organizations that have critical missions. We don't see that as a threat, rather an opportunity for us while they work with integration of big.
They're big, these big companies that we are out in the market. Our uniqueness is also that we're very, very close to customers. We have partners that are very, very close to customers and markets, and I think that's uniqueness for us to carve out. You've also seen, in the media maybe that, SES, which is another big satellite operator, they have both GEO and MEO capabilities, acquired DRS. DRS is actually a formidable service provider that we have worked actually a little bit with, in the U.S., but they acquired them. That was a vertical play, and DRS now becomes SES Government Solutions kind of service provider business and integrate those capabilities. That's, I think that's a strong move by SES.
I don't see it as a threat either because I think, DRS and SES do not have that unique SATCOM- as- a-S ervice offering that we do, where we control all that. We can collaborate with them going forward, but the consolidation is an opportunity for Ovzon to be more nimble, faster, closer to the market, working with the right partners and deliver our service that is, you know, kind of right in the wheelhouse of where our market segments and our customer wants us to be. I think consolidation is actually to our advantage as a somewhat smaller than these big gigantic companies, more nimble, very clear on our products and services portfolio provider today.
We see it as an opportunity rather than a threat that others are occupied with mergers and acquisitions and we can carve out a continued growth path for ourselves. With that, I think we're just a few minutes away, I think from turning to Johan. Is there anything that I missed? I realize I talked a lot here, Johan, but I appreciate all the questions. Johan, anything we should add?
I mean, great questions. I wonder, Lukas, if we have any other questions in the queue from participants.
There are currently no further questions in the chat box.
Okay.
That's good. From myself and from Johan and from the company, thank you so much for participating. We really appreciate it. As Johan said, we appreciate the active participation and the questions, and we look forward to briefing you next quarter again. We thank you for that and wish you a continued good rest of your day. Thank you so much.
Thank you.