April 29, 2015 - Revenues in the first quarter 2015 were $5.5 million, slightly
up from the same period last year. An 11% increase in desktop revenues was
offset by a decrease in data center revenues, due to variability in timing of
equipment shipments on a U.S. Government contract.
Data center revenues are expected to grow in 2015 as a result of contracts with
Fujitsu and California Energy Commission announced in the first quarter. Fujitsu
will incorporate Asetek's RackCDUT liquid cooling technology into its high
performance computing server product line. Additionally, the California Energy
Commission selected Asetek for a $3.5 million project to install RackCDU liquid
cooling in two large scale data centers.
In April Fujitsu placed its first production order under the agreement. With a
value of over $0.5 million for approximately 40 racks worth of cooling, it is
the largest single order Asetek has received thus far on its RackCDU products.
Asetek expects to deliver the product in the second quarter, while official
product launch by Fujitsu is expected in the third quarter.
Asetek achieved favorable settlements in intellectual property disputes during
the quarter and expects future decline in legal expenses going forward. However,
intellectual property continues to be a key part of Asetek's growth platform,
and the company continues to closely review and assess all competitive offerings
for infringement of its patents.
Sales unit volumes for the first quarter were 118,000, a 12% increase from the
same period 2014. Asetek had a substantial increase in sales of products to the
DIY market where margins are lower than in the rest of Asetek's product
portfolio. This change in the mix of products sold affected gross margin, which
was 36.6% for the first quarter, compared with 41.6% in first quarter 2014.
"First quarter desktop revenues were in line with our previously expected growth
and will grow stronger in the second quarter," said André Sloth Eriksen, founder
and CEO of Asetek. "On the data center side, we are starting to see the fruits
of our labor targeting top tier OEMs. The recent order resulting from our
milestone agreement with Fujitsu will continue this momentum in the second
quarter and beyond."
First quarter material
The first quarter report and the webcast presentation are attached to this
release and available from the company's website www.asetek.com.
Webcast
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.
A link to the webcast can be accessed from asetek.com/investor-relations/reports
-presentations.
The conference call details are:
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|Oslo, Norway |+47 2316 2787 |
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|Copenhagen, Denmark |+45 38 32 28 69 |
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|London, United Kingdom |+44 (0)20 3427 1909|
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|New York, United States of America|+1 212 444 0412 |
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| | |
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|Confirmation Code: |5570029 |
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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