OSLO, Norway, Feb. 24, 2021 /PRNewswire/ --
- Record quarterly revenue of $27.9
million, reflecting growth of 78% over Q4 2019
- Gross margin increased to 44% in Q4, from 43% in Q4
2019
- Record quarterly EBITDA adjusted of $6.9 million in Q4 2020, compared with
$2.6 million in Q4 2019
- Announced two acquisitions strengthening the Gaming and
Enthusiast product offering
- Full year revenue grew to a record $72.8 million with EBITDA adjusted of
$15.6 million compared with
$54.3 million and $6.2 million, respectively in 2019
- Group revenue growth expectation of 10 to 20% for 2021, with
an expected lower gross margin
- Full year 2021 operating income is expected to be between
$9 and $15
million
Asetek reported record revenue of $27.9
million in the fourth quarter of 2020, an increase of 78%
from the same period of 2019. Revenue in the full year was a record
$72.8 million representing growth of
34% compared with 2019. The change from prior year mainly reflects
increased shipments of Gaming and Enthusiast products.
Gross margin was 44% for the fourth quarter and 47% for the full
year, up from 43% and 42% in the respective comparable periods of
the prior year. The gross margin increase reflects a richer product
mix, higher sales prices for Data center products and Asetek's
business model transition for Gaming and Enthusiast OEMs that
customize their liquid coolers. A weaker U.S. dollar in the
fourth quarter of 2020 tempered the increase in margin from the
prior year.
"2020 was a record year in terms of revenue and profitability on
the back of demand growth and high activity in both the Gaming and
Enthusiast and Data Center business," said André Sloth Eriksen, CEO
and founder of Asetek. "Looking ahead, we expect growth to continue
in 2021. We also look forward to developing our SimSports product
offering for a rapidly growing segment of the gaming market by
leveraging the same capabilities that made us the global leader in
liquid cooling solutions."
Operating income totaled $5.6
million and adjusted EBITDA was $6.9
million in the fourth quarter of 2020, compared with
operating income of $1.2 million and
adjusted EBITDA of $2.6 million in
the fourth quarter of 2019. Operating income in the full year
was $10.9 million and adjusted EBITDA
was $15.6 million, compared with
operating income of $1.0 million and
adjusted EBITDA of $6.2 million in
2019.
During the fourth quarter, the Company repurchased a total of
187 thousand common shares for a total cost of $1.9 million, to offset employee option grants.
In the full year 2020, the Company repurchased a total of 844
thousand shares for a total cost of $6.4
million.
At December 31, 2020, Asetek had
working capital of $32.8 million, of
which $27.1 million was cash and cash
equivalents. Long-term debt totaled $2.6
million.
In November 2020, Asetek acquired
JMH Gallows Pound Technologies Ltd., a UK-based developer of
hardware and software technology and owners of the Ultimate Game
Tech brand, for $1.4
million.
In January 2021, the Company
announced an agreement to acquire intellectual property from
Finland-based Granite Devices Inc.
for EUR 6.8 million (USD 8.3 million). Asetek will pay EUR 3.4 million in cash and the remainder in
newly issued shares of Asetek common stock.
The assets acquired from the above transactions are expected to
strengthen Asetek's intellectual property and product offerings in
market opportunities identified within the Asetek eSports
Academy.
During the fourth quarter, the Company announced that Supermicro
is deploying Asetek's Direct-to-Chip liquid cooling in a new
high-performance computing cluster at Lawrence Livermore National
Labs. The integration of Asetek liquid cooling enables the use of
high wattage processors in high density configurations to support
compute-intensive workloads.
There was no significant negative impact from the COVID-19
pandemic on revenue, supply chain or overall operations during the
quarter.
For 2021, the Company expects revenue to increase by 10% to 20%
from 2020, with gross margins anticipated to be lower than 2020,
partly due to negative currency effects. Management expects the
Company to report operating income of between $9 and $15 million
in 2021.
The Company recognizes uncertainty related to potential impact
from COVID-19 over time. Any such uncertainty is not included in
the expectations for 2021.
Material:
Today, Asetek also published its Annual Report and its
Sustainability Report for 2020. It is attached to this release
together with the fourth quarter report and is also available
online at www.asetek.com (https://ir.asetek.com/) and
www.newsweb.no, as well as through news agencies.
Capital Markets Update (CMU) and fourth quarter 2020
presentation on Thursday, 4 March:
Asetek is pleased to invite investors, analysts, media and other
stakeholders to its Capital Markets Update (CMU) and fourth quarter
2020 presentation on Thursday, 4 March
2021. A detailed program will be announced closer to the CMU
date.
Attend Asetek's live webcast and learn more about the company's
positioning and development as a Global Leader in Liquid Cooling
Solutions and plans for strengthening its Gaming and Enthusiast
offering.
The CMU presentation will be given in English by CEO André Sloth
Eriksen, COO John Hamill and CFO
Peter Dam Madsen.
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
Asetek A/SAssenvej 2DK-9220 Aalborg EastDenmark
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The following files are available for download:
https://mb.cision.com/Main/6758/3294453/1377880.pdf
|
Release
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https://mb.cision.com/Public/6758/3294453/a02b00a838a589b1.pdf
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Asetek Annual Report
2020
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https://mb.cision.com/Public/6758/3294453/83784e0b7eb3f345.pdf
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Asetek Q4 2020
Report
|
https://mb.cision.com/Public/6758/3294453/88d0b7cd2cf9ed18.pdf
|
Asetek Sustainability
Report 2020
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SOURCE Asetek