Maven Wireless publish interim report for second quarter 2024. The interim report is also available at www.mavenwireless.com
Second quarter 1 April – 30 June 2024
•Net sales amounted to SEK 53. 741 M (65.437)
•EBITDA SEK 2.845 M (11.030)
•Operating profit SEK 916 M (9.691)
•Order intake SEK 39.214 M (34.507)
•Cash flow from current operations SEK 6.854 M (4.113)
•Earnings per share after dilution SEK 0.00 (0.19)
•Equity per share, SEK 2.32 (1.76)
The period 1 January – 30 June 2024
•Net sales amounted to SEK 107.048 M (106.507)
•EBITDA SEK 2.845 M (13.148)
•Operating profit SEK 916 M (9.317)
•Order intake SEK 86.060 M (69. 445)
•Cash flow from current operations SEK -20.342 M (-2.939)
•Earnings per share after dilution SEK 0.12 (0.23)
•Equity per share, SEK 2.32 (1.76)
CEO’s statement
The Group continues to deliver profitable growth with a net revenue of SEK 54 million for the second quarter. Our production also shows that we maintain good control over production flow costs, as the Group reports a gross profit margin of 41% during second quarter.
During the second quarter, we saw a continued inflow of orders from both existing and new customers. We have won business from four new customers in Italy, India, Sweden, and Kazakhstan. I particularly want to highlight a strategic order from an Indian customer for 5G DAS test systems, which paves the way for our 5G systems in the Indian market. According to Ericsson's Mobility Report, there are expected to be 500 million 5G subscriptions in the Indian market by 2027. Maven Wireless can address a third of the Indian DAS market, which this year is estimated to be worth around USD 350 million. This opportunity is further strengthened by India's conflict with China, leading to the purchase of technology and telecom systems from Western countries instead of China.
Furthermore, I am very pleased with a breakthrough order in Italy for GSM-Rail coverage for train tunnels. Italy is one of the five largest sub-markets in Europe where DAS systems are extensively used for tunnel and indoor coverage. It is therefore important for us to deliver our first system during the third quarter to establish a reference in Italy that can generate more local business.
Our strategic investments for further expansion continue as the Group established a subsidiary in the UK during the quarter to handle increasing business volumes there. At the same time, we are hiring an additional salesperson based in Atlanta to strengthen our local presence and increase order intake in the North American market, which is the world's largest sub-market.
The launch of the Nimbus platform for 5G indoor coverage is progressing well and has received very positive feedback from the market. It is clear that our product is superior in delivering the highest data speed and is a complete solution supporting all operators' frequencies on the 4G and 5G bands through the same Nimbus unit. We have already secured two orders for Nimbus from India and Switzerland. Investments in test systems for the Nimbus platform have also been made, where several complete systems with Orion, Nimbus, and Helix products are assembled for demonstrations at customer sites and in field tests.
Our contract manufacturers generally continue to deliver standard products with lead times of 8–16 weeks. Our newest contract manufacturer has a few optimizations left to implement before all products flow through the production line on time, which means that some deliveries and invoicing have been postponed to third quarter. Order intake is growing by 14% compared to the same period last year.
Cash flow during the quarter was affected by investments in the type approval of US products, optimization of the production flow in the new factory, as well as costs for external consultants and tools to complete the software for the new Nimbus platform. As previously reported, the Group pays for all production related to all deliveries. Receivables of SEK 12 million related to a specific framework agreement will be paid after all tests are completed during third quarter, which temporarily impacts cash flow.
On the balance sheet, there are components and modules worth SEK 22 million, some of which will be used in production during the rest of the year.
The focus on security within IT and telecom systems in the market remains strong, and all EU member states are implementing local laws based on the NIS-2 directive in the near future. This means that the board and management of organizations providing IT and telecom systems are responsible for cybersecurity. Furthermore, it means that future systems will be more secure. Insecure and vulnerable systems, such as public wifi networks, will be replaced by safer alternatives. Maven Wireless systems maintain the same high security provided by the operators' networks and can therefore be used for secure and robust installations. Additionally, we see an increase in private 4G and 5G networks in several regions, which in many cases replace WIFI solutions. Our Nimbus platform supports the 4G and 5G standards and can distribute signals from all operators as well as Private 5G networks through the same system, making it cost-effective and unique in the market.
In summary, I am very pleased that the Group continues its global expansion into new countries while following our expansion plan in existing markets and maintaining good gross profit margins. With the Nimbus platform, we continue to contribute to digitalization for safe and secure societies, both within 5G and other critical communications.
Kista, 12 July 2024
Fredrik Ekström – Group CEO
Significant events during the second quarter
Maven Wireless receives call-off order of circa SEK 15 million for new product variant
Maven Wireless has developed support for up to 5 different frequency bands in the Stratus high-power radio remote, which previously supported up to 4 frequency bands per remote. The new product has been included in the framework agreement for the Austrian Transport Administration (ÖBB) where a first call-off order has been received via the local partner Tomek.
The order is planned to be delivered and invoiced during June-July 2024. The product primarily addresses the tunnel market in Europe, but can also be used in the Middle East and parts of Asia. The five frequency bands support mobile telephony for all operators in the market, including 5G in the lower frequency bands, which provides optimized propagation for tunnel coverage. In addition, the product supports the supplementary downlink band at 1400 MHz (SDL), which further increases the total bandwidth the system delivers, making Maven Wireless' product unique in the DAS market.
Maven Wireless signs production agreement with Vexos Inc.
Maven Wireless Sweden AB (publ) has entered into a production agreement with Vexos Inc. a global Electronics Manufacturing Services (EMS) and custom material solutions provider. Vexos has facilities in United States, Canada, Mexico, China and Vietnam.
The manufacturing partnership will initially be supported at Vexos’ factory in Vietnam.
Maven Wireless Establishes Subsidiary in the UK
Maven Wireless Sweden AB (publ) has founded a new subsidiary Maven Wireless Ltd with corporate identity number 15767390. The new limited liability company will focus on continued sales and expansion in the UK and Ireland.
