- Q2 revenue of $17.1 million
compared with record level of $19.5
million in Q2 2018
- Gross margins grew to 42% in Q2 and first half, up from 36%
in the same periods of the prior year
- Q2 EBITDA adjusted of $3.3
million, improved from $2.9
million in Q2 2018
- First half revenue of $28.3
million and EBITDA adjusted of $3.6
million compared with $33.4
million and $3.8 million
respectively in 2018
- Group revenue expectation for 2019 adjusted in July to a
decrease of approximately 20% compared with 2018, due to
macroeconomic and industry headwinds reducing customer forecasts in
the second half
OSLO, Aug. 14, 2019 /PRNewswire/ -- Asetek reported
second quarter revenue of $17.1
million compared with a record $19.5
million in Q2 2018. First-half 2019 revenue amounted to
$28.3 million compared with
$33.4 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 second quarter and first half was 42%, up
from 36% in both comparable periods of the prior year, which led to
a 2% increase in gross profit in the second quarter compared with
Q2 2018. The improved gross margin reflects higher ASPs on Gaming
and Enthusiast products as well as a stronger U.S. dollar.
"Despite prevailing macroeconomic uncertainties, we delivered
our second-highest quarterly revenue to date following good demand
for our liquid cooling technology in the Gaming and Enthusiast
market," said André Sloth Eriksen, CEO and founder of Asetek. "We
remain impacted by economic and industry headwinds, which have led
to a more uncertain outlook for the second half of the year and the
recent reduction to our revenue forecast. However, despite a
decrease in revenue, we expect to deliver another profitable
year."
Operating income totaled $2.1
million and adjusted EBITDA was $3.3
million in the second quarter of 2019, compared with
operating income of $1.7 million and
adjusted EBITDA of $2.9 million in
the second quarter of 2018. 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 2019 operating income was
$1.1 million and adjusted EBITDA was
$3.6 million, compared with operating
income of $1.3 million and adjusted
EBITDA of $3.8 million in the same
period of 2018. Adjusted EBITDA in the second quarter and first
half of 2019 was favorably impacted by an accounting change to IFRS
16 Leases.
In April, the Company announced the 645LT liquid cooler, a new
design for small form factor PC cases. The 645LT combines Asetek's
latest generation of pump technology (Gen6) and unique tube design
to enable space-saving and ease of installation.
Asetek is powering EVGA's new GeForce RTX 2080 Ti K|NGP|N Hybrid
GPU cooler. The ultimate solution for hardcore gamers and
enthusiasts, Asetek's Gen6 liquid cooling technology enables
extreme performance with minimal noise, providing targeted cooling
of ultra high-end GPUs to ensure advanced overclocking
capabilities.
In efforts to establish EU standards that will reduce permitted
energy consumption used for data center cooling, Asetek executives
are proactively working with political leaders to create a wider
understanding of the significant environmental benefits enabled by
liquid cooling.
Gaming and Enthusiast revenue was $16.6
million in the second quarter, compared with a record
$18.3 million in the same period of
2018. First-half revenue was $27.0
million, compared with $31.5
million in the first half of 2018. Adjusted EBITDA was
$5.1 million for the quarter and
$8.0 million for the first half,
compared with $5.9 million and
$9.9 million in 2018, respectively,
reflecting increased investment in the Gaming and Enthusiast
segment in 2019.
Data center revenue was $0.5
million in the second quarter, compared with $1.2 million in Q2 2018. First-half revenue was
$1.2 million, compared with
$1.9 million in the first half of the
prior year. Adjusted EBITDA was ($1.4
million) in the second quarter and ($2.7 million) in the first half of 2019, both of
which are an improvement from 2018 and reflect a reduction of
segment operating expenses of approximately 35% in 2019.
On July 23, the Group revenue
expectation for the full year 2019 was adjusted to a decrease of
approximately 20% compared with 2018. Initial customer forecasts
for 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, 14 August at
8:30 AM CEST:
CEO André Sloth Eriksen and CFO Peter
Dam Madsen will present the Company's results at
8:30 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 Q2 2019
results webcast via the following link:
https://edge.media-server.com/mmc/p/9i9dhkks
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:
9995035
|
Material:
The second 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 Q2 2019
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Asetek Q2 2019
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SOURCE Asetek