First quarter 2023 Net sales amounted to SEK 58.411 M (27.471), equivalent to an increase of 113%. Net sales increased by 94% at constant currency. Adjusted EBITDA totaled SEK -11.731 M (-17.328). Profit/loss before depreciation and amortization (EBITDA) amounted to SEK -15.003 M (-11.972). Operating profit/loss (EBIT) was SEK -40.678 M (-26.985). Profit/loss after tax amounted to SEK -40.135 M (-18.332). Earnings per share before and after dilution was SEK -0.41 (-0.10). Equity per share amounted to SEK 5.59 (5.66).
Significant events in the first quarter:
Significant events after the end of the period:
Key Performance Indicators
|Net sales growth %||113%||98%||46%|
|Net sales growth at constant currency %||94%||79%||30%|
|Profit/loss for the period||-40,135||-18,332||-86,384|
|Earnings per share before and after dilution, SEK||-0.19||-0.10||-0.41|
|Equity per share, SEK||5.59||5.66||5.8|
An online presentation of the Interim Report will be held at 10:00 AM (CEST) Thursday, May 4, 2023.
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Doubling revenues – the growth journey continues
Following a very strong close to 2022, we are proud to continue to generate outstanding growth in the first quarter of 2023. Sales increased by 113 percent to SEK 58.4 million, a new record for any single quarter.
This is the second consecutive year that we returned net sales growth of approximately 100 percent in the first quarter in year-on-year terms. The growth was driven by expansion in both Wireless and Photonics, which grew by 235 and 29 percent respectively compared to the first quarter of 2022. The strong sales figures were primarily due to the orders secured in the fourth and first quarter, totaling SEK 240 M. Our target net sales growth of at least 100 percent for the full year 2023 stands, although this may vary between quarters as previously stated.
Adjusted for items affecting comparability, EBITDA was SEK -11.7 M (-17.3) in the first quarter. The improved operating profit was primarily due to increased sales, although cost control also remained tight which accelerates our journey towards profitability. For example, we reduced headcount from 130 employees in the fourth quarter to 116 employees at the end of the first quarter. Good cost control and strong growth create the right conditions for reaching our target of positive adjusted EBITDA in the second half of 2023. We are also striving to ensure that cash flow from operating activities becomes positive as soon as possible.
Worth noting is that the difference between EBITDA and adjusted EBITDA is largely linked to changes in the share price, where an increased share price means increased provisions for long-term incentive programs, which results in increased personnel costs. For the first quarter, this meant an increase of approx. 8.4 million in personnel costs compared to the same quarter last year. These costs do not affect cash flow, but affect both EBITDA and EBIT. It is also notable that capitalized work for own account decreases by 9.4 million year over year, which had a positive impact on last year’s comparative figures at the EBITDA level. The reason for the decrease is an increased customers funded development. This is a positive trend and means that the company’s EBITDA compared to last year is standing very strong.
Just before the end of the quarter, the company raised approximately SEK 150 million before transaction costs in a directed share issue aimed at both existing and several new Swedish and international investors. I would like to take this opportunity to express my thanks for the confidence shown in us, and am particularly pleased to be welcoming AP2, Cicero Fonder, AP4 and Serpentine Ventures AG amongst our shareholders. Furthermore, Sivers has received a conditional credit offer of SEK 50 million. The credit offer is conditional on Sivers concluding ongoing negotiations relating to additional junior capital of SEK 50 million for a total financing of SEK 250 million.
The new financing secures the continued organic growth. The financing is critical to the successfully delivery of orders from two European satellite communications companies. These orders are worth approximately SEK 190 million in total, of which the most recent from Thorium Space totaled SEK 19.5 million and was placed as recently as March 17. The Wireless business area is also seeing significant interest in 5G, particularly noticeable at the MWC in Barcelona, where we announced a 5G collaboration with Intel and WiSig Networks. Together we are developing a solution aimed at 5G mmWave in India. Towards the end of last year, we announced our first customer on the Indian market, a region that we believe has very positive future prospects for us and where we are seeing significant interest from several potential customers.
Our first US Fortune 100 customer has continued during the first quarter to push the collaboration where we invoiced approx. SEK 11 M compared to SEK 9 M the year before. We have also received an order from the same customer that will be delivered during the second quarter for the equivalent of approx. 30,000 laser array chips that the customer will use for internal characterization and system development.
During the quarter, we were encouraged by the significant interest shown in our technology at the major Optical Fiber Communication Conference and Exhibition (OFC) in San Diego, where we gave a live demonstration of our DFB lasers alongside Ayar Labs, with the aim of supporting expected strong AI-related demand in future. Our platform will have tremendous potential in a couple of years’ time when our customers ramp up volumes once their respective prototype phases are complete.
Sivers is benefiting from several megatrends that will continue to grow regardless of developments in the wider world. Our competitive products and strong global network mean that we are in a unique and very strong position. I look forward to our continued success in 2023 with great confidence.
Anders Storm, President and CEO
This disclosure contains information that Sivers Semiconductors is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the contact person set out below on 4 May, 2023 at 08:00 CET.
For more information, please contact:
CEO, Sivers Semiconductors
Email: [email protected]
Tel: +46 (0)70 262 63 90