Earnings Release • Apr 27, 2016
Earnings Release
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ASETEK - Q1 2016: Revenue Growth and Profitability
April 27, 2016
· Strong revenue growth in desktop DIY market
· Data center revenue ramped up on shipments to new customers
· Third consecutive quarter of net profit and positive EBITDA
· Positive outlook maintained: Modest growth within desktop segment and
significant growth within data center segment in 2016
Asetek reported revenue of $10.4 million in the first quarter 2016, representing
growth of 88% versus the same period last year. The growth consisted of 75%
increase in desktop revenue driven by shipments in the DIY market. Data center
revenue grew over five times the revenue achieved in first quarter 2015, as a
result of shipments to new customers.
Asetek shipped 188,000 desktop units in the first quarter. Total shipments of
sealed loop coolers since the Company's inception has now surpassed three
million.
Gross margins for the first quarter were 39%, an increase from both the prior
quarter (36%) and the first quarter 2015 (37%).
Revenue growth and cost savings resulted in group net income of $0.4 million and
positive EBITDA of $1.2 million in the first quarter 2016, both reflecting
significant improvement from losses incurred in the same period last year.
Initial shipments of data center products to a new customer, Penguin Computing,
generated revenue of $0.8 million in the first quarter 2016.
Operating profits from the desktop segment were $2.8 million for the first
quarter 2016, an increase from $0.8 million in the same period last year, due to
the increase in DIY product sales.
Operating losses from the data center segment were $1.0 million for the first
quarter 2016 compared with losses of $1.5 million in the same period last year.
The results reflect continued implementation of Asetek's data center strategy
with investments in technology development, product marketing and sales
activities.
"We reaffirm our outlook for the full year 2016, anticipating moderate growth in
the desktop business, when comparing to the record revenue level achieved in
2015, and significant revenue growth in the data center segment" says Andre S.
Eriksen, Chief Executive Officer.
Material
The interim report and presentation material will be made available on
www.asetek.com and www.newsweb.no, as well as through news agencies.
Webcast at 8:30 AM CEST
Asetek will give a presentation at 8:30 AM CEST which can be followed through a
webcast or a conference call. CEO André Eriksen and CFO Peter Dam Madsen will
give the presentation.
In order to follow the presentation of the results use one of the following
channels:
a. Webcast - audio and slide presentation
A link to the webcast will be released on the company's investor website in due
time before the presentation. Please refer to asetek.com/investor
-relations/reports-presentations.
b. Conference call - audio only
Dial in 5-10 minutes prior to the start time using the phone numbers and
confirmation code below:
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|Oslo, Norway |+47 2350 0486 |
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|Copenhagen, Denmark |+45 3848 7513 |
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|London, United Kingdom |+44(0)20 3427 1903|
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|New York, United States of America |+1 646 254 3365 |
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| | |
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|Confirmation Code |2159347 |
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Q&A: The conference call lines will be opened for participants to ask question
at the end of the presentation.
A recorded version of the presentation will be available on www.asetek.com after
the broadcast has concluded.
About Asetek
Asetek is the world leading provider of energy efficient liquid cooling systems
for data centers, servers, workstations, gaming and high performance PCs. Its
products are used for reducing power and greenhouse emissions, lowering acoustic
noise, and achieving maximum performance by leading OEMs and channel partners
around the globe. Asetek's products are based upon its patented all-in-one
liquid cooling technology with more than 3 million liquid cooling units deployed
in the field. Founded in 2000, Asetek is headquartered in Denmark with offices
in California, China and Taiwan. For more information, visit
http://www.asetek.com.
For further information, please contact:
Andre S. Eriksen, Chief Executive Officer
Mobile: +45 2125 7076
e-mail: [email protected]
Peter D. Madsen, Chief Financial Officer
Mobile: +1 408 813 4147 (GMT -07:00)
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