InCoax Networks AB’s Interim Report, January–September 2019

During the third quarter, additional evaluation studies started and the first reference customers are in place. 26 potential customers are in test phase and commercial discussion are underway. Ongoing work with five major operators is providing exciting opportunities in the short and medium term.

Financial performance July–September 2019

  • Net sales amounted to SEK 178,947 (408,972), which is equivalent to a decrease of 56% compared with the corresponding period in the preceding year.
  • The company posted an operating loss of SEK –13,624,785 (–11,347,662), a reduction driven primarily by organizational growth.
  • The loss after tax was SEK –13,856,735 (–11,408,943), corresponding to earnings per share of SEK –1.12 (–1.38).
  • Cash flow including financing activities during the quarter was SEK –3,788,271 (3,213,001) and cash and cash equivalents amounted to SEK 22.6 million at the end of the quarter.

Financial performance January–September 2019

  • Net sales amounted to SEK 2,245,520 (1,315,976), which is equivalent to an increase of 71% compared with the corresponding period in the preceding year.
  • The company posted an operating loss of SEK –47,085,489 (–31,711,770), a reduction driven primarily by organizational growth.
  • The loss after tax was SEK –47,400,864 (–31,829,385), corresponding to earnings per share of SEK –3.83 (–3.84).
  • Cash flow including financing activities during the period was SEK 14,836,369 (1,219,859).

Significant events during the quarter

  • On August 20, 2019, InCoax raised bridge financing of SEK 15 million and on September 9, 2019 an Extraordinary General Meeting approved a rights issue of approximately SEK 59 million.
  • The company strengthened its sales organization, appointing business developers in North America and a sales manager in Germany.
  • The first order was received from the Swedish operator A3 for In:xtnd™.

Significant events after the end of the quarter

  • The rights issue contributed SEK 47.5 million to the company, of which approximately SEK 5.8 million was used to offset bridge financing.
  • Two new In:xtnd™ products were launched and an agreement was signed with a new partner for contract development and production of In:xtnd™ Access.
  • Retailer agreement signed with FCA in the Polish market.
  • Order secured from Deutsche Telenetz for rural services via radio link/fixed wireless access (FWA).

See the attached interim report in its entirety.

The interim report is also available at www.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 08.15 CET on Nov 29, 2019.

Contacts
Peter Carlsson, CEO, peter.carlsson@incoax.com, (+46) (0) 26-420 90 42
Marie Svensson, CFO, marie.svensson@incoax.com, (+46) (0) 26-420 90 42

About InCoax Networks AB (publ.)
InCoax is innovating the future of broadband access. In:xtnd™ provides the next-generation smart and sustainable networking solutions to the world’s leading telecom and broadband service providers. For additional information about how we are saving the world from complicated, visit www.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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