InCoax Networks AB informs about the business situation and communicates updated financial targets

During the first half of the year, InCoax has had ongoing discussions with the American Tier-1 operator regarding the final step (productification and commercialization) of InCoax MoCA Access-based multigigabit solution for fiber extension in multi-family houses. The American Tier-1 operator continues to show great interest but has decided, due to other previously initiated internal projects, to wait until the financial year 2023 to move forward in the process.
The Board’s assessment now is that InCoax will have net sales of SEK 25 million for 2022. The previously communicated growth targets remain intact.

There is still great interest from the operator to move forward with InCoax’ solution. However, the operator has decided to wait until the financial year 2023 to proceed with the project. In addition to budget technicalities, this is also due to an ongoing roll-out of G.fast 212, which will consume a lot of resources at the operator during the next six months.

In parallel, during late spring, a Tier-1 operator turned to InCoax with a targeted request for quotation on products intended for private single-family houses. InCoax has recently carried out successful lab tests of our products at the operator that during the summer will go into a full-scale field test in about 10 properties in the USA. InCoax believe that the decision-making process for this project is fast with potential orders during the third quarter 2022. The operator has a need to convert approximately four million homes over a 3-5-year period.

Other operators with ongoing deployments of InCoax’ systems continue to place orders according to plan and InCoax expect continued orders during the second half of the year. The speed of new deployments is limited by the installation capacity. The resources needed for installations has proven to be a general bottleneck and the operators are not back to the capacity they had before the pandemic.

The new product D2501 is currently in a lab test at two operators in the USA. In the EU, lab tests have been initiated with one operator and another operator is now entering live field tests in four buildings. After participating in trade fairs in May and June in the EU and the USA, additional operators have shown interest where testing is expected to start at several of these during the second half of 2022. InCoax view positively the opportunity to expand sales of existing products as well as the D2501.

There is great interest in broadband solutions in so-called "Social Housing" in both the United Kingdom and the United States. InCoax has, among other things, an ongoing collaboration with PC´s for People, which provide broadband solutions in this area in the USA. This is a large market that is supported at the federal and state levels through the USD 65 billion budget for broadband expansion that the US Congress passed last fall. InCoax also has ongoing dialogues with several cities in the UK that want to offer similar solutions.

The last two years have been challenging because of the pandemic, which, among other things, has severely limited the possibility of sales activities and travel. In addition, InCoax has experienced perhaps the most difficult situation ever in the component market. InCoax has nevertheless been able to handle the situation in an acceptable way. However, the conflict in Ukraine has exacerbated the challenges and, as a result, InCoax has had extended transport times for our products, as it is no longer possible to transport by land via Russia.

Based on the above, the board of InCoax has decided to revise the company's financial targets for 2022. The assessment now is that InCoax will have net sales of SEK 25 million for 2022. The previously communicated growth targets remain intact.

This information is such information as InCoax Networks AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 09.00 CEST on July 12, 2022.

For additional information, please contact:
Jörgen Ekengren, CEO, InCoax Networks AB
jorgen.ekengren@incoax.com
+46 73 899 55 52

About InCoax Networks AB
InCoax Networks AB (publ) is innovating the reuse of existing in-building infrastructure for broadband access. InCoax provide the next-generation MultiGigabit networking solutions to the world’s leading telecom and broadband service operators. To keep updated on corporate information, visit incoax.com. Augment Partners AB, tel. +46 8-604 22 55 info@augment.se, is acting as the company’s Certified Adviser.