Sivers IMA Holding AB Interim report January–March 2019
First quarter 2019
- Operating income for the quarter amounted to SEK 40,536 thousand (25,189), an increase of 61 percent
- Net sales for the quarter amounted to SEK 25,050 thousand (13,073), an increase of 92 percent
- Earnings before depreciation (EBITDA) for the quarter amounted to SEK -5,925 thousand (-14,564)
- Result for the quarter amounted to SEK -20,670 thousand (-24,836)
- Earnings per share amounted to SEK -0.17 (-0.22)
- Equity per share amounted to SEK 1.93 (2.51)
Significant events during the period January-March:
- Sivers IMA AB has signed an agreement with an Eastern European system provider of wireless broadband access.
- Sivers IMA AB has signed a letter of intent for use of its unlicensed 5G products in ultrasound examination applications.
- Sivers IMA AB and Blu Wireless displayed exceptional performance with their licensed 5G solution.
- Sivers IMA AB launched wideband 5G RFIC at Mobile World Congress 2019.
A web-based presentation of the third interim report will be held at 10:00 Wednesday, May 22, 2019. Please register for the webinar via the link: https://attendee.gotowebinar.com/register/8254917096183055884
Significant events following the period:
- Sivers IMA AB have, together with partners, sold more than 20 evaluation kits for 5G since the Mobile World Congress (MWC) in February.
Sivers IMA Holding AB have selected Pareto Finance as financial advisor for the list change of the company’s shares to Nasdaq main market and to assist the company with evaluation of other strategic and financial initiatives.
First quarter – strong net growth and great demand for our products
The first quarter of 2019 was my twelfth quarter as CEO of Sivers IMA. A lot has happened during that period, and in this quarter, we started to reap the rewards of the solid work done by the entire organization. The first quarter’s good growth gives a taste of our business model’s strength. Net sales nearly doubled in the quarter, and we are now starting to see that our wireless operations are driving growth. The fiber area is also expanding, but at a slightly lower growth rate.
The fact that 5G is starting to take off cannot have escaped anyone, and I dare say that everything within wireless 5G has gone right for us in the quarter. The interest in our technology during the Mobile World Congress (MWC) in Barcelona was overwhelming. Together with our partners Blu Wireless and Fujikura, we had a large and very well attended stand. The great interest can be explained, among other things, by the fact that operators both in the USA and Japan have recently said that they will invest in 5G infrastructure. In total, this amounts to almost SEK 2.6 trillion over five years.
What I am most proud of in the first quarter is that, together with Blu Wireless, we managed to show we can get up to 1 Gbps over 700 meters in the license-free 60 GHz band. The performance we demonstrated together is industry-leading and can become a unique selling point for our customers, the system manufacturers.
Our major engagement at MWC continues to have a positive effect even after the fair, and we now have more customer requests within 5G than ever before. It is evident in how many evaluation packages we have sold. They are a way for potential customers to evaluate how our equipment works and to design in our products in their next step.
Our evaluation packages are far from free and give an indication that prospective customers believe in our solutions. We have nine design wins from customers who develop products or prototypes based on our 5G technology and more than 20 evaluation kits sold during the last two months. Our goal is to keep signing more design wins and to build for growth. They are an important part of our business.
Also in the fiber segment - CST Global - the business has strengthen. Sales to the Fortune 100 customer that we signed in the fourth quarter are doing well and we are working to get follow-up orders in the future.
In March, we also participated in the world's largest optical exhibition Optical Networking and Communication Conference (OFC) in San Diego, and since then we have seen a very good influx of new potential customers also in this area. In late 2018, we were hit by the trade war with China and we are now working to normalize our operations within fiber to the home (FTTH) from 2020. Especially through our new 10 Gbps products, and we see good opportunities for design wins with new customers going forward.
Overall, in terms of sales, the quarter is strong with very good growth and through solid cost control we have succeeded in reducing EBITDA losses to a great extent, without sacrificing quality or development efforts.
During my time at Sivers IMA I have never before seen such a strong customer interest, and this applies to both our business areas. Lead times can sometimes be long, but our development during the first quarter gives a taste of the potential of our business. We are involved in many exciting customers' projects and I look forward with excitement.
Anders Storm, CEO of Sivers IMA Group
For more information:
Anders Storm, CEO
Tel: +46 70 262 6390
Erik Penser Bank is appointed Sivers IMA Holding AB’s Certified Advisor at Nasdaq First North.
103 91 Stockholm
Tel: +46 8 463 80 00
This information is insider information that Sivers IMA is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication trough the agency of the contact person set out above, on May 22, 2019, at 08:00 CET.
Sivers IMA Holding ABis a leading and internationally renowned supplier, publicly traded under SIVE at Nasdaq First North Stockholm. The wholly owned subsidiaries Sivers IMAand CST Globaldevelop, manufacture and sell cutting-edge chips, components, modules and subsystems based on proprietary advanced semiconductor technology in microwave, millimeter wave and optical semiconductors. Headquarters in Stockholm, Sweden. Learn more at http://siversima.com.