OSLO, Norway, Aug. 12, 2020 /PRNewswire/ -- Asetek reported
second quarter revenue of $14.1
million compared with $17.1
million in the same period of 2019. First-half 2020 revenue
was $23.3 million compared with
$28.3 million in 2019. The change
from prior year reflects Asetek's transition to a new business
model and declining sales to one OEM customer. There was no
significant impact from the COVID-19 pandemic on revenue, supply
chain or overall operations during the quarter.
Gross margin was 51% for the second quarter and the first half,
up from 42% in both comparable periods of the prior year, yielding
a year-over-year increase in second-quarter gross profit. The gross
margin increase reflects higher sales prices for Data center
products, a stronger U.S. dollar, a richer product mix and Asetek's
business model transition for Gaming and Enthusiast OEMs that
customize their liquid coolers.
"We focus on developing innovative liquid cooling solutions for
great end-user experiences, building strong relationships with our
OEM partners and optimizing our business model to improve margins
and drive long-term growth," said André Sloth Eriksen, CEO and
founder of Asetek. "From late second quarter we experienced a
step-change in demand for our Gaming and Enthusiast products which
combined with increased margins for all product groups are expected
to yield a substantial increase in revenue and profit for the full
year."
Operating income totaled $2.0
million and adjusted EBITDA was $3.1
million in the second quarter of 2020, compared with
operating income of $2.1 million and
adjusted EBITDA of $3.3 million in
the second quarter of 2019. Operating expenses in the second
quarter of 2019 included a positive effect of $0.8 million related to a favorable patent
litigation settlement. First-half 2020 operating income was
$1.1 million and adjusted EBITDA was
$3.3 million, compared with operating
income of $1.1 million and adjusted
EBITDA of $3.6 million in the same
period of 2019.
In April, the Company announced a share buy-back program to
offset employee option grants. The Company may purchase up to
1.0 million Asetek shares on the open market for a maximum cost of
$4.5 million through September 2020. In the second quarter, the
Company repurchased 287 thousand shares under this program for a
total cost of $1.64 million.
At June 30, 2020, Asetek had
working capital of $28.1 million, of
which $24.8 million is cash and cash
equivalents. Long-term debt totaled $2.4 million.
In July, the Company announced collaboration with Hewlett
Packard Enterprise (HPE) to deliver its premium data center liquid
cooling solutions in HPE Apollo Systems targeting high performance
computing and artificial intelligence applications.
During the quarter, Asetek announced its new Rad Card GPU
Cooler, the industry's first slot-in PCIe radiator card to provide
liquid cooling for GPU's in space constrained PC cases. Asetek
announced its technology is powering the new Fractal Design
Celsius+ CPU coolers, providing enthusiasts enhanced performance,
virtually silent operation and elegant design.
During the quarter, the Company shipped $0.8 million of InRackCDU™ on the largest order
received to date from a certain OEM partner, to supply liquid
cooling for a new high-density HPC cluster in North America.
On July 21, Asetek updated its
full-year revenue outlook. Following increased sales expectations
for the rest of 2020, primarily driven by strong demand for the
Gaming and Enthusiast product group, the Group revenue expectation
was updated to an increase of 5% to 15%, corresponding to between
$57.1 million and $62.5 million, compared with 2019 revenue of
$54.3 million, from the previous
expectation of a decline in revenue of 5% to 10% year over year.
Gross margin is expected to increase from 2019, and Asetek expects
an income before tax of about $4 to
$5 million, compared with
$1.5 million in 2019.
The Company recognizes significant uncertainty related to
potential impact from COVID-19 over time. Any such uncertainty is
not included in the expectations for the remainder of 2020.
Conference call and webcast today Wednesday, 12 August at
11:30 CEST:
CEO André Sloth Eriksen and CFO Peter
Dam Madsen will present the Company's results at
11:30 CEST and invites investors,
analysts and media to join the presentation. The presentation is
expected to last up to one hour, including Q&A, and can be
followed via live webcast or conference call.
Webcast - audio and slide presentation: Please join the Q2 2020
results webcast via the following link:
https://edge.media-server.com/mmc/p/wdjy2yyg
Conference call - audio only: Please dial in 5-10 minutes prior
using the phone numbers and confirmation code below:
Copenhagen,
Denmark:
|
+45 3272
8042
|
Oslo,
Norway
|
+47 2396
0264
|
London, United
Kingdom:
|
+44 (0) 8445 7188
92
|
Paris,
France:
|
+33 (0) 1767
00794
|
New York,
United States of America
|
+1 631 5107
495
|
Confirmation
code:
5081646
|
Material:
The second quarter report and presentation will also be made
available online at www.asetek.com (https://ir.asetek.com/) and
www.newsweb.no, as well as through news agencies.
A recorded version of the presentation will be made available at
www.asetek.com (https://ir.asetek.com/) approximately two hours
after the presentation has concluded.
Q&A:
The conference call lines will be opened for participants to ask
question at the end of the presentation. Questions can also be
submitted through the online webcast during the presentation.
For questions or further information, please contact:
CEO and Founder André S. Eriksen, +45 2125 7076, email:
ceo@astek.com
CFO Peter Dam Madsen, +45 2080
7200, email: investor.relations@asetek.com
About Asetek:
Asetek, the creator of the all-in-one liquid cooler, is the
global leader for liquid cooling solutions for high performance
gaming and enthusiast PCs, and environmentally aware data centers.
Founded in 2000, Asetek is headquartered in Denmark and has operations in China, Taiwan
and the United States. Asetek is
listed on the Oslo Stock Exchange (ASETEK.OL).
www.asetek.com
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/asetek/r/asetek---q2-2020--gross-margin-increase-and-raised-full-year-expectations,c3167119
The following files are available for download:
https://mb.cision.com/Main/6758/3167119/1290028.pdf
|
Release
|
https://mb.cision.com/Public/6758/3167119/84b3b41076f694aa.pdf
|
Asetek Q2 2020
Presentation
|
https://mb.cision.com/Public/6758/3167119/8e689820a2565244.pdf
|
Asetek Q2 2020
Report
|
View original
content:http://www.prnewswire.com/news-releases/asetek---q2-2020-gross-margin-increase-and-raised-full-year-expectations-301110672.html
SOURCE Asetek