Edgeware publishes preliminary Q2 2017 results
Based on preliminary estimates, Edgeware’s net sales for the second quarter 2017 will amount to about SEK 40 million compared to SEK 51,5 million for the corresponding period 2016. The EBIT for the quarter will consequently amount to about SEK -13 million.
The revenue decrease was driven primarily by three factors: firstly as previously communicated, Edgeware sell to telcos and service providers whose recurring purchases can, and have historically, varied significantly from quarter to quarter. During Q2, fewer of these existing customers placed orders. Secondly, during Q2, Edgeware’s new flagship product, the “TV server 4080” targeting our new and growing broadcaster segment, was in a ramp up phase and a significant order was received. Since production is being ramped up, shipping and revenue could only be recognized for half of that order within Q2. The remainder will be shipped during Q3. Thirdly, the second quarter tends to be a seasonally weak quarter for Edgeware. Furthermore, this year there were no large televised events such as the Olympic Games or the European Soccer championships to drive expansion purchases by our customers.
"While we are disappointed in the Q2 results, we remain confident in our business model and reaffirm the financial mid- to long term targets that we presented in connection with our IPO to grow net sales at 20 percent annually and achieve an EBIT margin of 15 percent” says Joachim Roos, CEO of Edgeware.
The complete half year report will be published as planned on August 3 at 07.30 CET. A telephone conference will be held thereafter at 10.00.
Edgeware offers leading operators and content providers the tools to deliver modern TV services on a huge scale and at a low cost. Edgeware’s unique technology gives control and insight back to the content provider with an outstanding viewing experience. In recent years, Edgeware has experienced rapid growth, reaching sales of SEK 252 million in 2016. Edgeware is headquartered in Stockholm, Sweden, with a subsidiary in the US and offices Hong Kong and Mexico. Edgeware also has sales and technical sales support staff throughout Europe, Asia and Americas. For more information, visit www.corporate.edgeware.tv.