OSLO, Norway, Oct. 23, 2019 /PRNewswire/ --
- Q3 revenue of $10.4 million
compared with $17.4 million in Q3
2018
- Gross margin of 42% in Q3 and YTD, level with Q3 2018 and
improved from 38% in the first nine months of
2018
- Q3 EBITDA adjusted of $32,000,
compared with $3.0 million in Q3
2018
- First nine months revenue of $38.7
million and EBITDA adjusted of $3.6
million compared with $50.8
million and $6.8 million
respectively in 2018
- Cash increased $7.6 million
year-to-date, compared with $0.4
million in same period of
2018
- Q4 Gaming and Enthusiast revenue is expected to increase
compared with Q3 2019 while decreasing vs. Q4
2018
- Q4 Gaming and Enthusiast gross margins expected to decline
2-3 %-points due to an inventory cleanout and a one-time final
sell-out of an end-of-life
product
- Group revenue expectation for 2019 maintained at decrease of
approximately 20% compared with 2018, due to macroeconomic and
industry headwinds reducing customer volumes in the second half of
2019
Asetek reported third quarter revenue of $10.4 million compared with $17.4 million in the third quarter of 2018.
Revenue in the first nine months amounted to $38.7 million compared with $50.8 million in the same period of 2018. The
change from the prior year reflects fewer shipments in the Gaming
and Enthusiast segment, as expected in a softer market for PC's and
components.
Gross margin for the third quarter and first nine months was
42%, level with the third quarter of 2018 and up from 38% in the
first nine months of 2018. The current year gross margins reflect
higher ASPs on Gaming and Enthusiast products and a stronger U.S.
dollar
"We have a clear set of strategic priorities. We invest more in
new and innovative Gaming and Enthusiast solutions which will
underline that Asetek is the standard in liquid cooling and our
branding program is gaining traction with both our OEM partners and
end-users," said André Sloth Eriksen, CEO and founder of Asetek.
"While economic and industry headwinds continue temporary buffet
our industry, we focus on building the products and customer
relationships which will drive long-term growth and value
creation."
Operating loss was $1.2 million
and adjusted EBITDA was positive $32,000 in the third quarter of 2019, compared
with operating income of $2.0 million
and adjusted EBITDA of positive $3.0
million in the third quarter of 2018.
Operating loss in the first nine months was $0.1 million and adjusted EBITDA was positive
$3.6 million, compared with operating
income of $3.2 million and adjusted
EBITDA of positive $6.8 million in
the same periods of 2018. Cash and cash equivalents increased by
$7.6 million in the first nine months
of 2019 compared with $0.4 million in
the prior year period. Year-to-date operating expenses for 2019
included a positive effect of $0.8
million related to a favorable patent litigation settlement.
Adjusted EBITDA in the third quarter and first nine months of 2019
was favorably impacted by an accounting change to IFRS 16 Leases
(see Note 2 to the Financial Statements).
Asetek's sixth generation (Gen6) high performance liquid coolers
are powering an expanding range of premium gaming gear, including
GIGABYTE's new AORUS CPU coolers and the ASUS Republic of Gamers
(ROG) Strix LC RGB series. The 680LS all-in-one CPU cooler debuted
in the new Talon gaming PC's built by custom hardware specialist
Falcon Northwest. Asetek's Gen6 reliability, superior thermal
performance, quiet operation and overclocking potential provide for
the optimal gaming experience.
In August, Asetek launched coolnation.com, a community forum for
gamers, as well as technology enthusiasts and DIY PC builders. The
site serves as an online platform for educating and engaging with
others in the gaming community. In September, the Company
kicked off its first gaming tournament for the Danish eSports
community, "CoolNation Master Counter Strike: Global
Offensive".
Gaming and Enthusiast revenue was $9.6
million in the third quarter, compared with $16.1 million in the same period of 2018. Revenue
in the first nine months was $36.6
million, compared with $47.6
million in the same period of 2018. Adjusted EBITDA
was $2.1 million for the quarter and
$10.1 million for the first nine
months, compared with $5.4 million
and $15.3 million in 2018,
respectively, reflecting increased investment in the Gaming and
Enthusiast segment in 2019, consistent with plans communicated at
Asetek's capital markets update in March 2019.
Data center revenue was $0.8
million in the third quarter, compared with $1.3 million in the third quarter of 2018.
Revenue in the first nine months was $2.1
million, compared with $3.2
million in the same period of the prior year. Adjusted
EBITDA was negative $0.9 million in
the third quarter and negative $3.5
million in the first nine months of 2019, both of which are
an improvement from 2018 and reflect the Company's planned
reduction of segment operating expenses in 2019.
Consistent with the prior quarter, the Group revenue expectation
for the full year 2019 is a decrease of approximately 20% compared
with 2018. Customer volumes in the second half of 2019 reflect
reduced demand in the DIY market segment as a result of
macroeconomic and industry headwinds. Based on current revenue and
cost outlook, Asetek expects to report a pre-tax profit for
2019.
Conference call and webcast today Wednesday, 23 October at
8:00 AM CEST:
CEO André Sloth Eriksen and CFO Peter
Dam Madsen will present the Company's results at
8:00 AM 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 Q3 2019
results webcast via the following link:
https://edge.media-server.com/mmc/p/zqkn354h
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: 1265775
|
Material:
The third quarter report and presentation will also be made
available online at www.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 approximately two hours after the presentation has
concluded.
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 is the global leader in liquid cooling solutions for
gaming and enthusiast PCs, data centers and servers. Founded in
2000, Asetek is headquartered in Denmark and has operations in California, Texas, China
and Taiwan. Asetek is listed on
the Oslo Stock Exchange (ASETEK.OL).
For more information, visit: www.asetek.com
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Asetek Q32019
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Asetek Q32019
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