HIDDN: Financial results for the third quarter of 2018
Strong cost control and gross margins close to 40% reduces EBIT loss and cash burn rate
(Oslo, 16 November 2018) Hiddn Solutions ASA (Hiddn, OSE: HIDDN) recorded revenues of NOK 3.4 million in the third quarter of 2018 (Q3 2017: NOK 4.3 million) and reduced the operating loss to NOK 10.4 million (Q3 2017: NOK 13.4 million). Hiddn continues to expand the product offering and distribution capabilities in Europe and US/Canada as the company is preparing for increased sales and volume production in 2019.
“Hiddn continued to expand the product offering, improving production capabilities and opening new distribution channels during the third quarter. We are on track for our 2018 targets. We reported a reduced burn rate, strong cost control and gross margins of close to 40%. In addition, we are developing our product roadmap as we are looking towards increased sales and volume production in 2019, “ says Carl Espen Wollebekk, CEO of Hiddn.
Hiddn reported revenues of NOK 3.4 million in the third quarter of 2018, down from NOK 4.3 million in the corresponding quarter last year. The company recorded a gross profit of NOK 1.3 million, equalling a gross margin of 37%. This is up from a gross profit of NOK 0.8 million and a gross margin of 18% in the corresponding quarter last year. The loss before tax ended at NOK 10.5 million in the third quarter of 2018 compared to a loss before tax of NOK 13.4 million in the corresponding quarter last year.
After the closing of the quarter, Hiddn received the first order from ALSO Holding AG (ALSO). The initial order from ALSO covers Hiddn's flash and USB products for Scandinavia and Hiddn is currently also finalising the availability for these products for the rest of Europe. In addition, Hiddn is preparing the upcoming inclusion of Hiddn's SafeDisk solution for laptops and tablets into the ALSO product offering.
“This first order from ALSO confirms the demand for Hiddn's GDPR compliant secure data storage solutions in Scandinavia and is a stepping stone into launching the new range of products and services in both Scandinavia and the rest of Europe, “Wollebekk continues.
Going into 2019, Hiddn is preparing for increased production and sales and the company recently announced Jørgen Waaler as SVP for Partner sales.
“All major elements of our growth strategy should now be in place. As a response to the anticipated increase in demand for Hiddn’s products, we are now preparing our first major production order for 2019. Our aim is to leverage on our position as a leading technology provider in the global encryption market and respond to an accelerated growth in demand.”, Wollebekk concludes.
Hiddn will host an open presentation Friday 16 November 2018 at 08.00 (CET) at Felix Conference Centre. The presentation will be broadcasted live at www.hiddn.no and on http://webtv.hegnar.no/presentation.php?webcastId=97451630
For further information, please contact:
Carl Espen Wollebekk, CEO, telephone: + 47 930 55 505 /e-mail: firstname.lastname@example.org
About Hiddn Solutions ASA
Hiddn Solutions ASA is listed on the Oslo Stock Exchange under the ticker HIDDN. The company is offering impenetrable proprietary hardware-based authentication and encryption products with a superior level of security as well as a wider product suite addressing all market segments looking for solutions to ensure that sensitive information stays confidential and unavailable to unauthorised access. Based on Hiddn's unrivalled and proven position in the high-end encryption market, Hiddn is implementing a strategy of adapting the proprietary technology to the high-volume markets to take advantage of the growing global security challenges and the arising regulatory requirements. Hiddn has established a product offering that addresses all market segments from the high-end security clients to the retail market, and established partnerships with some of the most important sales and distribution partners in Europe. Hiddn sees significant growth opportunities and rising demand from customers and is well on its way to solidify its leading position in the growing market for secure data storage.
For more information, please visit: www.hiddn.no