Vis børsmeldingen
supply chain challenges and non-recurring costs related to a sharpening of
Asetek’s Data center segment to improve profitability.
Asetek’s operations have been affected by shut down in the Tongan District in
China, hindering sub-suppliers’ deliveries of components, and a challenging
Covid-19 situation in Xiamen, hindering deliveries of components to Asetek’s
contract manufacturers and consequently their shipments to Asetek.
In addition to the new Covid-19 effects in China, continued components shortages
and increasing logistics costs are affecting both Asetek and the company’s
customers and partners, leading to increased uncertainty related to sales and
costs for the remainder of the year.
Coinciding with the Covid-19 effects in China and the wider supply chain
challenges, Asetek has decided to sharpen its Data center business segment and
exit the High Performing Computing (HPC) niche. The decision was taken to
protect Asetek’s future profitability from increasing HPC investment needs,
lacking revenue from the HPC area and an upcoming milestone with an external HPC
partner involving binding commitments. Asetek will prioritize the general data
center market and support legislation increasing adoption of the company’s
sustainable data center solutions, capitalizing on the company’s liquid cooling
technology and long-term investments in the Data center business segment.
On August 12, Asetek announced its second quarter report with full year 2021
expectations including revenue growth of 20-30% compared with 2020 and an
operating income of $8-12 million.
Based on the current situation and outlook, Asetek’s updated full year 2021
expectations are:
The reduced operating income expectation is explained by reduced sales due to
China lock-downs, increased shipping and component costs, as well as non
-recurring costs of $2.5 million associated with the sharpening of the Data
center segment by exiting the HPC niche.
“The shut-downs, component shortages and shipping bottle necks are challenging
the supply chains of both Asetek and our customers. This impacts our revenue and
cost expectations. We have highlighted the risk related to Covid-19 and
component shortages over time. As the situation now unfolds, we will adapt to
the current environment, reduce spending and focus on delivering on the strong
underlying demand we have experienced over time” Andre Sloth Eriksen, the CEO of
Asetek says.
“Asetek has a clear strategy of profitable growth. Since our HPC area continue
to burn cash and don’t materialize meaningful returns, we decided to exit HPC.
We maintain our long-term dedication and exposure to sustainable data centers
with a focused approach, while improving our shorter-term profitability. The
time was right to make a decision since we were facing a milestone with an
external HPC partner involving binding commitments” Andre Sloth Eriksen adds.
Asetek will hold an investor conference call later today and will provide
additional comments then and not before that. The company will report its third
quarter results on October 28, 2021. Today’s update is based on new and
currently available information, and the company will provide further updates on
its business and outlook via interim reporting and other disclosure when
relevant.
Investor conference call today Wednesday, September 22, 2021 at 4:30 PM CEST
CEO André Sloth Eriksen, COO John Hamill and CFO Peter Dam Madsen will hold a
conference call and Q&A related to the updated full year 2021 expectations at
4:30 PM CEST today.
The conference call and Q&A session can be accessed by using the following link:
https://streams.eventcdn.net/asetek/fy2021
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).
This information is subject to the disclosure requirements pursuant to Section 5
-12 of the Norwegian Securities Trading Act. This stock exchange release was
published by Peter Dam Madsen, CFO at Asetek A/S, on September 22, 2021 at 12:45
CEST
Kilde
.
?