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InCoax Networks AB Interim Report, January – September 2020

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Initial volume order from a large US Internet Service Provider (ISP), extended scope project agreement with Tier 1 Operator in North America and signed VAR-agreement in the UK and Germany.


Financial performance

July – September 2020

  • Net sales amounted to SEK 346,553 (178,947), corresponding to a year-on-year increase of 93%.
  • The operating loss was SEK –17,160,056 (–13,624,785), driven by a stock devaluation of
    3 891 000 SEK  within hospitality in a segment which has been effected by a weakening in demand due to Covid-19. In addition, the capitalization model has been introduced for development costs.
  • The loss after tax was SEK –17,439,827 (–13,856,735), corresponding to earnings per share of SEK –0.95 (–1.12).
  • Cash flow including financing activities during the quarter was SEK -10,427,312 (-3,788,271). The inventory write-down has no effect on cash flow.
  • Investments amounted to SEK 2,664,000 (0).

January – September 2020

  • Net sales amounted to SEK 1,068,214 (2,245,520), corresponding to a year-on-year decrease of 52%
  • The operating loss was SEK – 48,768,163 SEK (-47,085,489), a decline driven by stock devaluation in one product segment which has partly been met by the product development capitalization model implemented in Q3.
  • The loss after tax was SEK –49,159,530 (–47,400,864), corresponding to earnings per share of SEK –2.69 (–3.83).
  • Cash flow including financing activities during the period was SEK -26,642,745 (14,836,369). The inventory write-down has no effect on cash flow.
  • Investments amounted to SEK 2,664,000 (0).

Significant events during the quarter

July - September

  • Technetix Group Limited signs reseller agreement with InCoax.
  • Incoax performs a fully guaranteed rights issue of approx.48 MSEK and enters into agreement on offset issue of convertibles.
  • InCoax terminates Covid-19 short term work time reductions during August.

Significant events after the end of the quarter

October

  • InCoax rights issue is registered as completed.
  • North American Tier 1 Operator extends co-operation with InCoax and places order for field trials.
  • Peter Hasselberg appointed interim CFO.
  • InCoax receives an initial volume order for from US Fiber/LAN Operator.
  • The Board takes decision on Q3 inventory write-down of 3,891 kSEK regarding a product line in the hospitality segment that was affected by the sharp fall in demand due to Covid-19.

November

  • InCoax decides to implement the method of Capitalisation of own-developed immaterial fixed assets (development costs) as new accounting principle from July 1, 2020. During Q3 2,664 kSEK has been activated and booked as restricted equity in the balance sheet.
  • Alf Eriksson elected new member of the Board.

Full the full report, please download the attached PDF. The full report is also available at incoax.com.

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 CET on November 26, 2020.

For more information:
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 future of broadband access. InCoax MoCA Access 2.5 platform provides the next generation cost-efficient multi-gigabit Fiber Access Extension solutions to the world’s leading telecom, cable- and broadband service providers. To keep updated on corporate information, visit incoax.com. Augment Partners AB, tel. +46 8-505 651 72 info@augment.se, is acting as the company’s Certified Adviser.

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