Asetek A/S

Earnings Release • Feb 24, 2016

ASETEK - Q4 2015: Growth, profitability and emerging data center business

ASETEK - Q4 2015: Growth, profitability and emerging data center business

February 24, 2016

· Third straight quarter of record-level revenue driven by DIY desktop product

sales

· Full year 2015 revenue of $36 million, up 73% versus 2014

· Positive net income and group EBITDA in the fourth quarter

· Positive outlook: Expecting modest growth within desktop segment and

significant growth within data center segment in 2016

Asetek reported total revenue of $12.5 million in the fourth quarter of 2015,

reflecting growth of 173% over the same period of 2014 ($4.6 million). Total

revenue in 2015 was $36.0 million, an increase of 73% over 2014 ($20.8 million).

The increases reflect growth in shipments of the desktop segment's do-it

-yourself ("DIY") products.

Gross margin was 35.9% for the fourth quarter of 2015, a decrease from 39.8% in

the same period last year. Gross margin for the full year 2015 decreased to

34.5% from 41.8% in 2014. The decreases in gross margin in both periods reflect

the increase in shipment of lower margin DIY products.

Operating profit in the fourth quarter 2015 amounted to $1.8 million (loss of

$3.4 million). For the full year 2015 Asetek reduced its operating loss to $2.3

million (loss of $9.5. million). The results improvements compared with the

previous periods stem from profitable growth within Asetek's desktop segment and

a data center segment that is starting to generate income based on the

investments made during the last years.

The revenue growth within the desktop segment in 2015, up 77% versus 2014, was

driven by strong demand for certain products, but also by an extraordinary set

of circumstances including lawsuit settlements, which cannot be expected to

replicate in 2016. Hence, the desktop business is expected to grow modestly in

2016 from a record level in 2015. Within the emerging data center segment, the

company anticipates significant revenue growth in 2016 compared with 2015.

Revenue and operating results are expected to fluctuate however, as partnerships

with large original equipment manufacturers (OEMs) are developed.

"2015 was marked by solid progress. We deliver strong, profitable growth within

our desktop business, our market position was solidified by IP wins and our data

center solutions are gaining traction with new customers around the world.  But

we still have much to achieve before we tap our full potential. Moving further

into 2016, we focus on continued growth within the desktop segment and ensuring

that OEMs increase the adoption of our compelling liquid cooling solution for

data centers" says Andre S. Eriksen, Chief Executive Officer.

Asetek will provide a more in-depth description of its strategy and business

outlook at its capital markets update to be held on February 29, 2016. See more

information below.

Fourth quarter report

The fourth quarter report is attached to this release and available from the

company's website www.asetek.com.

Capital Markets Update Monday 29 February 10:00-12:00 CET in Oslo

Asetek will present the results, its strategy and business outlook to the

capital market Monday 29 February 2016 when the company hosts a Capital Markets

Update in Oslo Norway. Investors, analysts and others are invited to the event,

hosted by Asetek's CEO André Eriksen, CFO Peter Dam Madsen and VP Worldwide

sales John Hamill.

Agenda:

09:45     Registration

10:00     Presentations and Q&A sessions

11:50     Wrap-up

12:00     Informal get together with Asetek management

Location:

Felix Conference Centre, Bryggetorget 3, 0250 Oslo, Norway

Registration:

In order to ensure adequate capacity at the conference centre, please register

to Asetek Investor Relations investor.relations@asetek.com and provide your

name, company, contact information and any comments you may have regarding the

event.

Webcast:

The Capital Markets Update event will also be webcast live. Presentations will

be available for download before the event begins. Further details may be found

under the investor relations section of Asetek's website:

http://www.asetek.com/investor-relations/ (http://www.asetek.com/investor

-relations/reports-presentations/q4-2015-capital-markets-update/).

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 2.8 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: ceo@asetek.com

Peter Dam Madsen, Chief Financial Officer

Mobile: +1 408 813 4147 (GMT -08:00)

investor.relations@asetek.com