ASETEK – Q1 2016: Revenue Growth and Profitability

April 27, 2016

• Strong revenue growth in desktop DIY market
• Data center revenue ramped up on shipments to new customers
• Third consecutive quarter of net profit and positive EBITDA
• Positive outlook maintained: Modest growth within desktop segment and significant growth within data center segment in 2016

Asetek reported revenue of $10.4 million in the first quarter 2016, representing growth of 88% versus the same period last year. The growth consisted of 75% increase in desktop revenue driven by shipments in the DIY market. Data center revenue grew over five times the revenue achieved in first quarter 2015, as a result of shipments to new customers.

Asetek shipped 188,000 desktop units in the first quarter. Total shipments of sealed loop coolers since the Company’s inception has now surpassed three million.

Gross margins for the first quarter were 39%, an increase from both the prior quarter (36%) and the first quarter 2015 (37%).

Revenue growth and cost savings resulted in group net income of $0.4 million and positive EBITDA of $1.2 million in the first quarter 2016, both reflecting significant improvement from losses incurred in the same period last year.

Initial shipments of data center products to a new customer, Penguin Computing, generated revenue of $0.8 million in the first quarter 2016.

Operating profits from the desktop segment were $2.8 million for the first quarter 2016, an increase from $0.8 million in the same period last year, due to the increase in DIY product sales.

Operating losses from the data center segment were $1.0 million for the first quarter 2016 compared with losses of $1.5 million in the same period last year. The results reflect continued implementation of Asetek’s data center strategy with investments in technology development, product marketing and sales activities.

“We reaffirm our outlook for the full year 2016, anticipating moderate growth in the desktop business, when comparing to the record revenue level achieved in 2015, and significant revenue growth in the data center segment” says Andre S. Eriksen, Chief Executive Officer.

Material

The interim report and presentation material will be made available on www.asetek.com and www.newsweb.no, as well as through news agencies.

Webcast at 8:30 AM CEST

Asetek will give a presentation at 8:30 AM CEST which can be followed through a webcast or a conference call. CEO André Eriksen and CFO Peter Dam Madsen will give the presentation.

In order to follow the presentation of the results use one of the following channels:

a. Webcast – audio and slide presentation

A link to the webcast will be released on the company's investor website in due time before the presentation. Please refer to asetek.com/investor-relations/reports-presentations.

b. Conference call – audio only

Dial in 5-10 minutes prior to the start time using the phone numbers and confirmation code below:

Q&A: The conference call lines will be opened for participants to ask question at the end of the presentation.

A recorded version of the presentation will be available on www.asetek.com after the broadcast has concluded.

About Asetek

Asetek is the world leading provider of energy efficient liquid cooling systems for data centers, servers, workstations, gaming and high performance PCs. Its products are used for reducing power and greenhouse emissions, lowering acoustic noise, and achieving maximum performance by leading OEMs and channel partners around the globe. Asetek's products are based upon its patented all-in-one liquid cooling technology with more than 3 million liquid cooling units deployed in the field. Founded in 2000, Asetek is headquartered in Denmark with offices in California, China and Taiwan. For more information, visit http://www.asetek.com.

For further information, please contact:

Andre S. Eriksen, Chief Executive Officer
Mobile: +45 2125 7076
e-mail: ceo@asetek.com

Peter D. Madsen, Chief Financial Officer
Mobile: +1 408 813 4147 (GMT -07:00)
investor.relations@asetek.com