OSLO, Norway, Aug. 12, 2021 /PRNewswire/ --
- Record Q2 revenue of $23.2
million reflecting growth of 64% over Q2 2020
- Q2 EBITDA adjusted of $3.2
million, compared with $3.1
million in Q2 2020
- First-half 2021 revenue grew 107% to $48.2 million, and EBITDA adjusted increased 140%
to $7.9 million
- SimSports R&D investment of $0.7
million in Q2, with launch of first products expected later
this year
- G&E investments increased to support future revenue
growth
- 2021 Group revenue expectation maintained at increase of 20%
to 30% over 2020 revenue of $72.8
million
- Gross margin is expected to normalize to between 40% and 45%
in 2021 and operating income expectation is revised to the range of
$8 to $12
million (previously $11-$16 million),
compared with $10.9 million in
2020
Asetek reported second-quarter revenue of $23.2 million, an increase of 64% from the same
period of 2020. First-half 2021 revenue was $48.2 million, an increase of 107% from
first-half 2020. The growth in both periods mainly reflects
increased shipments of Gaming and Enthusiast products.
Gross margin was 42% for the second quarter and 43% in the first
half of 2021 compared with a record level 51% in the each of the
same periods of 2020. The decline reflects a change in the mix of
product shipments, increases in certain component costs due to the
ongoing global component shortage, and a weaker U.S. dollar.
"We experience continued strong demand for our Gaming and
Enthusiast products as reflected in record revenue for the second
quarter and the first half. This provides a robust platform for
investing in future growth. However, high product development
activity combined with increased costs for certain components, IP
defense and FX impacted margins for the period," said André Sloth
Eriksen, CEO and founder of Asetek. "We maintain our full-year
growth outlook as we move towards the introduction of the first of
our SimSports products for this rapidly expanding segment of the
gaming market later in the year."
Operating income was $1.9 million
and adjusted EBITDA was $3.2 million
in the second quarter of 2021, compared with operating income of
$2.0 million and adjusted EBITDA of
$3.1 million in the second quarter of
2020. First-half 2021 operating income was $5.4 million and adjusted EBITDA was $7.9 million, compared with operating income of
$1.1 million and adjusted EBITDA of
$3.3 million in the same period of
2020.
Operating expense included R&D investment in the new
SimSports line of business of $0.7
million and $1.2 million in
the second quarter and first half of 2021, respectively, compared
with zero in the same periods of 2020.
In April, to offset an approved employee option grant, the Board
of Directors authorized the repurchase of 237 thousand shares for
up to $3.0 million over a three-month
period. During the second quarter, the Company repurchased 124
thousand common shares for a total of $1.5
million.
At June 30, 2021, Asetek had
working capital of $28.2 million, of
which $24.7 million was cash and cash
equivalents. Long-term debt totaled $2.1
million.
During the quarter, the Company announced that Asetek technology
is powering several new all-in-one coolers offered by ASUS,
including its second-generation ROG Ryujin line of CPU coolers, its
new family of ROG Strix LC II ARGB high performance CPU coolers,
and its new liquid cooled NVIDIA GeForce RTX 3080 Ti graphics card.
These offerings provide extreme performance and overclocking
capability, silent operation and next-generation aesthetics.
In the first quarter, Asetek announced its entrance into the
fast-growing SimSports gaming market. Asetek has invested over
$10 million to advance the
development of its SimSports offerings, including software,
hardware, mechanical designs and operational proficiency from asset
acquisitions in January 2021 and
November 2020. Asetek anticipates the
launch of new SimSports products in late 2021.
In 2021, various factors including production constraints and
the accelerated digital transformation brought upon by the COVID-19
pandemic has led to a shortage of semiconductor chips. This
shortage has constrained the ability of both the Company's
suppliers and customers to fulfill demand, thereby limiting
Asetek's revenue growth in the short term. The time and manner in
which the chip shortage may ease is currently unclear.
Asetek maintains its 2021 revenue expectation of an increase of
20% to 30% from 2020. The gross margin is anticipated to
normalize within the range of 40% to 45% in 2021, compared with 47%
in 2020. Management revises the operating income expectation to
between $8 and $12 million in 2021, reflecting increased
overhead costs to facilitate growth combined with FX, component
shortage mitigation as well as U.S. tariff mitigation. This
compares to the previous expectation of operating income in the
range of $11 to $16 million.
The Company recognizes uncertainty related to potential impact
from COVID-19 and the global semiconductor chip shortage. Any such
uncertainty is not included in the expectations for 2021.
Conference call and webcast today Thursday, 12 August at
2:00 PM CEST:
CEO André Sloth Eriksen and CFO Peter
Dam Madsen will present the Company's results at
2:00 PM 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 2021
results webcast via the following link:
https://streams.eventcdn.net/asetek/q2-2021/register
Conference call – audio only: Please dial in 5-10 minutes prior
using the phone numbers and confirmation code below:
Copenhagen,
Denmark
|
+45 7872
3252
|
Oslo,
Norway
|
+47 2396
3688
|
Frankfurt,
Germany
|
+49 6913 8034
52
|
London, United
Kingdom
|
+44 (0) 3333 00
9032
|
New York,
United States of America
|
+1 631 913 1422 (US
only PIN: 14473374#)
|
Material:
The second quarter report and presentation are 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 (ASTK.OL).
www.asetek.com
This information is subject to the disclosure requirements
pursuant to Section 5-12 of the Norwegian Securities Trading Act.
This stock exchange release was published by Peter Dam Madsen, CFO at Asetek A/S, on
August 12, 2021 at 12:00 CEST
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/asetek/r/asetek---q2-2021--record-second-quarter-revenue-on-strong-gaming-and-enthusiast-demand,c3395545
The following files are available for download:
https://mb.cision.com/Main/6758/3395545/1453286.pdf
|
Release
|
https://mb.cision.com/Public/6758/3395545/b297f574cae3329c.pdf
|
Asetek Q2 2021
Presentation
|
https://mb.cision.com/Public/6758/3395545/91ae8482f4c0481b.pdf
|
Asetek Q2 2021
Report
|
View original
content:https://www.prnewswire.com/news-releases/asetek--q2-2021-record-second-quarter-revenue-on-strong-gaming-and-enthusiast-demand-301354217.html
SOURCE Asetek