In This Article:
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Revenue: $12.7 million for Q2 2024, a slight increase from $12.2 million in Q1 2024.
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Gross Margin: 45% in Q2 2024, consistent with the same quarter last year.
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Operating Expenses: $7 million for Q2 2024, unchanged from the same quarter last year.
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Operating Income: Loss of $1.2 million in Q2 2024.
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Net Income: Loss of $2.3 million in Q2 2024.
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Cash Balance: $6.8 million at the end of June 2024.
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Full-Year Revenue Guidance: $52 million to $55 million.
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Adjusted EBITDA Margin Guidance: Between $1 million and $4 million.
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Cost Reductions: Initiated $3 million in annual cost reductions, primarily headcount-related.
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Liquid Cooling Revenue Expectation: Decrease by 35% to 40%, translating to $42 million to $44 million for the year.
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Same-Store Revenue Expectation: $10 million to $11 million for the year, representing 40% to 60% growth.
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Headcount Reduction: Reduced from 130 to approximately 105 employees.
Release Date: August 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Asetek AS (FRA:A31) maintained a stable gross margin of 45% year-over-year despite a lower revenue base.
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The company expects the liquid cooling segment to remain profitable for the current year and beyond.
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Asetek AS is on track with its same-store business, projecting a revenue growth of 40% to 60% for the year.
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The company is investing in new product development and marketing to capitalize on future opportunities.
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Asetek AS has initiated cost reductions expected to save $3 million annually, with full effects anticipated by Q1 next year.
Negative Points
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Asetek AS faces a weaker than anticipated market rebound and increased price pressure in the liquid cooling market.
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The company expects a significant revenue decrease in the liquid cooling segment, between 35% and 40% for the year.
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Asetek AS is experiencing customer challenges, including a customer exiting the market and another facing liquidity constraints.
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The company is impacted by low-cost competitors from China, affecting its gross margins.
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Asetek AS anticipates entering 2025 with increased uncertainty due to market volatility and customer dual sourcing.
Q & A Highlights
Q: Is it reasonable to assume that your gross margin from same-store is about 65%? A: It's not really a number we can comment on because it also depends a lot on whether it's sold by a reseller or directly on our website. If it's sold direct, then there's a debate about whether marketing costs should be included. So, no, I cannot really comment on that.