Asetek A/S

Earnings Release • Aug 13, 2014

ASETEK - Q2 2014 Strengthened data center market position

ASETEK - Q2 2014 Strengthened data center market position

August 13, 2014 - Revenues were in line with second quarter last year.

Effects of a business model change on certain products as well as modest

demand in the desktop do-it-yourself market offset an increase in data

center revenues. Overall gross margin improved by 3.5 percentage points,

reflecting the change in business model, a proactive approach to

optimizing the offered product mix, and cost savings achieved with

certain component suppliers. Asetek delivered on its largest single

RackCDUT order to date, as products worth $350,000 were shipped to an

OEM customer for installation in a U.S. Federal Data Center.

"The RackCDU order that came in during the quarter was a good

opportunity for us to test and prove our volume manufacturing capability

for data center products. The experience, together with the new U.S.

patent allowance for the RackCDU, gives us confidence in the continued

design-in efforts with OEMs and system integrators," says André Eriksen

CEO of Asetek. "The desktop segment secured an important design win in

the workstation market. Looking forward, those achievements outweigh the

softened DIY market demand, which we believe will recover in the third

quarter."

Revenues came in at $5.4 million, marginally up from $5.3 million in the

second quarter 2013. Operating profits from the desktop segment were

$0.7 million, down from $1.1 million in the same period last year and

explained in part by the modest decrease in revenues but primarily

explained by a temporary increase in R&D expenditures in finalizing the

design of a next generation product. Operating losses from the

datacenter segment were $1.3 million, an improvement from $2.0 million

in the second quarter 2013 and a result of higher revenues. Data center

spending reflects continued investments in development and marketing in

the segment. Asetek shipped 109,000 patented sealed liquid cooling units

in the second quarter.

Asetek will give a presentation today at 08:30 CEST which can be

followed through a webcast or a conference call. CEO André Eriksen and

CFO Peter Dam Madsen will represent the company.

The webcast can be accessed on http://www.media-server.com/m/p/nzs24i93.

The conference call details are:

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|Norway |+47 2316 2787 |

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|Denmark |+45 38 48 75 13 |

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|United Kingdom |+44(0)20 3427 1915|

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|United States of America|+1 646 254 3365 |

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|Confirmation Code: |9306328 |

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Q&A: The conference call lines will be opened for participants to ask

questions at the end of the presentation.

For further information, please contact:

Andre S. Eriksen, Chief Executive Officer

Mobile: +1 408 398 7437, e-mail: ceo@asetek.com

Peter Madsen, Chief Financial Officer

Mobile: +1 408 813 4147, e-mail: investor.relations@asetek.com