In This Article:
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Liquid Cooling Revenue: $8.6 million, down from $10 million in the same quarter last year.
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Group Gross Margin: 44.2%, slightly up compared to last year.
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SimSports Revenue: $1.1 million, down from $2.2 million last year.
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Total Revenue: Down by 19% compared to Q1 last year.
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Operating Expenses: $6.1 million, down 10% from $6.7 million last year.
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Operating Income: Negative $1.8 million, compared to negative $1.4 million last year.
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Income Before Tax: Negative $2.2 million, compared to negative $700,000 last year.
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Cash Balance: $9 million as of March 31, up from $3 million at the end of December.
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Interest-Bearing Debt: $20 million, primarily related to H2 financing.
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Revised Group Revenue Guidance: $45 million to $53 million, down from $52 million to $58 million.
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Adjusted EBITDA Margin Guidance: 0% to 3%, down from 3% to 5%.
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SimSports Revenue Guidance: Revised to $5 million to $10 million, down from $12 million to $15 million.
Release Date: April 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Asetek AS (STU:A31) reported a Q1 group gross margin of 44.2%, slightly up from the previous year.
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The company successfully completed a rights issue in January, raising $10.4 million in net proceeds.
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Asetek AS (STU:A31) has expanded its production capacity in Malaysia, which helps mitigate the impact of US tariffs.
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The liquid cooling segment remains a solid and profitable business, with healthy gross margins and new product releases.
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The company has entered into a new agreement with a leading Pan Scandinavian consumer electronics chain to carry its products, marking a significant retail milestone.
Negative Points
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Q1 liquid cooling revenue decreased to $8.6 million from $10 million in the same quarter last year, reflecting a shift towards more affordable products.
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The company's full-year revenue outlook was adjusted downward due to lower SimSports revenue expectations.
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Asetek AS (STU:A31) faces increased uncertainty due to US tariffs impacting its SimSports business, leading to a halt in US sales for this segment.
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The company reported a 19% decline in total revenues compared to Q1 of the previous year.
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Operating income was negative at $1.8 million, compared to a negative $1.4 million in the same quarter last year.
Q & A Highlights
Q: Given the lower EBITDA guidance and continued investments in SimSports, what are your updated expectations for cash burn and free cash flow for 2025? A: We are not providing specific guidance on cash flow. However, with an EBITDA guidance around zero, investments in R&D of $2.5 million to $3 million, and loan repayments of $1 million to $1.3 million, these factors will impact cash flow. The downward adjustment in guidance has not improved the cash flow situation.