OSLO, Norway, April 22, 2021 /PRNewswire/ --
- Record first-quarter revenue of $25.0
million, reflecting growth of 174% over Q1 2020
- Gross margin of 43% compared with 49% in Q1 2020
- Record first-quarter EBITDA adjusted of $4.7 million, compared with $0.2 million in Q1 2020
- Announced entering the fast-growing SimSports gaming market,
with the expected launch of new products in late 2021
- 2021 Group revenue expectation updated April 7 to an increase of 20% to 30% over 2020
revenue of $72.8 million
- Gross margin is expected to decline from 2020 and Asetek
expects operating income of about $11
to $16 million, up from $10.9 million in 2020
Asetek reported record revenue of $25.0
million in the first quarter of 2021, an increase of 174%
from the same period of 2020. The change from prior year's period
mainly reflects increased shipments of Gaming and Enthusiast
products.
Gross margin was 43% for the first quarter of 2021 compared with
49% in the first quarter of 2020. The change from prior year
reflects a change in the mix of product shipments, increases in
certain component costs, and a weaker US Dollar.
"We have had a strong start to the year with record revenue and
profitability on the back of continued strong demand for Gaming and
Enthusiast products supported by improved activity for the Data
center business," said André Sloth Eriksen, CEO and founder of
Asetek. "Looking ahead, we expect growth to continue in 2021, which
is reflect in our recent update to the full-year outlook. We also
look forward to launching the first of our SimSports products for a
rapidly growing segment of the gaming market."
Operating income totaled $3.5
million and adjusted EBITDA was $4.7
million in the first quarter of 2021, compared with
operating loss of $0.9 million and
adjusted EBITDA of $0.2 million in
the first quarter of 2020.
During the first quarter, the Company repurchased a total of 163
thousand common shares for a total cost of $2.1 million to offset employee option grants,
completing the buyback program that was launched in October 2020.
On April 21, to offset an approved
employee option grant, the Board of Directors authorized repurchase
of an additional 237 thousand shares for up to $3.0 million over a 90 business days
period.
At March 31, 2021, Asetek had
working capital of $28.6 million, of
which $24.1 million was cash and cash
equivalents. Long-term debt totaled $2.3
million
In March, Asetek announced its entrance into the fast-growing
SimSports gaming market. To support and advance the development of
its SimSports offering, Asetek has acquired intellectual property
from Finland-based Granite Devices
Inc as well as invested over $10
million in software, hardware, mechanical designs and
operational proficiency when including the acquisition of UK-based
JMH Gallows Pound Ltd, owner of the UltimateGameTech brand, in late
2020. Asetek anticipates the launch of new SimSports products in
late 2021.
During the quarter, Asetek announced that Asetek liquid cooling
is powering new high-performance product releases from two new
Gaming and Enthusiast OEM partners; MSI introduced the SEA HAWK
240mm cooler for its GeForce RTX 30 Series graphics cards and the
MPG CORELIQUID K Series premium CPU liquid coolers; and SAPPHIRE
Technology released the TOXIC AMD Radeon RX 6900XT 360mm Hybrid GPU
cooler.
There was no significant negative impact from the COVID-19
pandemic on revenue, supply chain or overall operations during the
quarter.
On April 7, Due to strong demand
for Gaming and Enthusiast products, the Company increased its
outlook for 2021. Asetek expects revenue to increase by 20% to 30%
from 2020, from the previous expectation of an increase in revenue
of 10% to 20% year over year. Gross margin is anticipated to be
lower than 2020. Management expects the Company to report operating
income of between $11 and
$16 million in 2021, partially
reflecting increased overhead costs to facilitate growth, up from
previous range of $9 and $15 million.
The Company recognizes uncertainty related to potential impact
from COVID-19 over time. Any such uncertainty is not included in
the expectations for 2021.
Conference call and webcast today Thursday, 22 April at
14:00 CEST:
CEO André Sloth Eriksen and CFO Peter
Dam Madsen will present the Company's results at
14:00 CEST and invites investors,
analysts and media to join the presentation. The presentation is
expected to last up to one hour, including Q&A, and can be
followed via live webcast or conference call.
Webcast – audio and slide presentation: Please join the Q1 2021
results webcast via the following link:
https://edge.media-server.com/mmc/p/p43zqxqj
Conference call – audio only: Please dial in 5-10 minutes prior
using the phone numbers and confirmation code below:
Copenhagen,
Denmark
|
+45 3272
0417
|
Oslo,
Norway
|
+47 2156
3015
|
London, United
Kingdom
|
+44 (0) 844 481
9752
|
Paris,
France
|
+33 (0) 170 700
781
|
New York,
United States of America
|
+1 646 7413
167
|
Confirmation
code:
5559504
|
Material:
The first quarter report and presentation is available online at
www.asetek.com (https://ir.asetek.com/) and www.newsweb.no, as well
as through news agencies.
A recorded version of the presentation will be made available at
www.asetek.com (https://ir.asetek.com/) approximately two hours
after the presentation has concluded.
Q&A:
The conference call lines will be opened for participants to ask
question at the end of the presentation. Questions can also be
submitted through the online webcast during the presentation.
For questions or further information, please contact:
CEO and Founder André S. Eriksen, +45 2125 7076, email:
ceo@astek.com
CFO Peter Dam Madsen, +45 2080
7200, email: investor.relations@asetek.com
About Asetek:
Asetek, the creator of the all-in-one liquid cooler, is the
global leader for liquid cooling solutions for high performance
gaming and enthusiast PCs, and environmentally aware data centers.
Founded in 2000, Asetek is headquartered in Denmark and has operations in China, Taiwan
and the United States. Asetek is
listed on the Oslo Stock Exchange (ASTK.OL).
www.asetek.com
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The following files are available for download:
https://mb.cision.com/Main/6758/3330694/1405457.pdf
|
Release
|
https://mb.cision.com/Public/6758/3330694/aa829be2aee2dd97.pdf
|
Asetek Q1 2021
Report
|
https://mb.cision.com/Public/6758/3330694/974ec651eb2c8021.pdf
|
Asetek Q1 2021
Presentation
|
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SOURCE Asetek