Yahoo Finance

Announcement
To Nasdaq Copenhagen A/S and the press

Nørresundby, Denmark, 27 January 2022
Announcement no. 02/2022

Interim report for Q1 2021/22
(the period 01.10.2021 - 31.12.2021)

“We are pleased that the demand situation continues to improve with revenue more than doubling in the first quarter compared to last year. Especially in the Enterprise segment demand has rebounded after the impact of COVID-19. The global electronics component shortage and other supply chain impediments continues to impact RTX both regarding revenue and gross margin, and I appreciate the dedication with which the whole RTX organization is working to reduce the impact. With a very strong order book but still uncertain component situation, we maintain our outlook for the year and continue to see the financial year 2021/22 as a year where we gradually get back to our positive long-term trajectory. The strong demand rebound confirms the belief that we have in the strategic direction of and growth opportunities for RTX.”

Peter Røpke, CEO

HIGHLIGHTS Q1 2021/22

• Net revenue increased by 106.2% to DKK 126.4 million in Q1 2021/22 (Q1 2020/21: DKK 61.3 million). The demand situation continued to improve and normalize in the quarter. Supply challenges primarily related to component scarcity had an adverse impact on revenue in Q1. In total the combined effect of the component scarcity and other supply chain challenges has postponed revenue of approx. DKK 55 million from Q1 into Q2. As similar supply challenges had postponed revenue of approx. DKK 45 million from Q4 of 2020/21 into Q1 2021/22, the net effect on Q1 2021/22 from supply challenges was a negative revenue impact of DKK 10 million.

  • Enterprise segment: Revenue increased significantly by 153.1% to DKK 89.8 million. The increase is seen broadly in the segment. The effect of COVID-19 on demand is now limited in the segment. Revenue was negatively impacted by the component scarcity in the electronics industry.

  • ProAudio segment: Revenue increased by 34.1% to DKK 25.6 million. The effects of COVID-19 on demand is decreasing but still impacts parts of the segment. Recurring revenue from product sales and royalty increased over last year due to continued increase in demand for RTX’s product platforms in the ProAudio segment in accordance with the strategy for the segment. Revenue from engineering services decreased compared to last year in line with the strategy to focus on creating recurring revenue.

  • Healthcare segment: Revenue increased by 63.7% to DKK 11.1 million. The growth is primarily seen in the full ODM products in the segment.

  • FX corrected revenue growth was 96.0% as revenue compared to last year was positively impacted by the stronger US dollar.
    
    

• Gross profit increased by 98.1% to DKK 60.3 million in Q1 2021/22 (Q1 2020/21: DKK 30.5 million) driven by the revenue growth. The gross margin decreased to 47.7% (Q1 2020/21: 49.7%) negatively impacted by the revenue mix with a lower share of revenue from engineering services and by increased component costs compared to last year due to the developments in the global electronic industry. The increased component costs stem both from increases to regular supplier price lists as well as from higher costs when securing additional components through the spot buy market or other channels in order to secure further deliveries.
  
  

• Operating performance improved significantly over last year driven by the increase in revenue with EBITDA of DKK 5.0 million in Q1 2021/22 (Q1 2020/21: DKK -18.8 million) and EBIT of DKK -4.8 million in Q1 2021/22 (Q1 2020/21: DKK -25.3 million).
  
  

• Cash flows from operations (CFFO) amounted to DKK 14.3 million in Q1 2021/22 compared to DKK 30.7 million in Q1 2020/21. Compared to last year, CFFO was positively impacted by the increased earnings and negatively impacted by the working capital development.