Third quarter 2021 Revenue amounted to SEK 26.511 M (22.208), an increase of 19% Profit before depreciation and amortization (EBITDA) amounted to SEK -45.911 M (-38.699) Operating profit/loss (EBIT) for the period was SEK -53.906 M (-46.030) Profit/loss after tax was SEK -53.466 M (-151.610) Earnings per share before and after dilution was SEK -0.34 (-1.07) Equity per share amounted to SEK 2.75 (2.51) Profit for the quarter was negatively affected by acquisition costs of SEK 37.371 M relating to the acquisition of MixComm
January- September 2021:
Significant events in the third quarter:
Significant events after the end of the period:
Key performance indicators
|Profit/loss for the period||-53,466||-151,610||-108,596||-195,219||-195,782|
|Earnings per share before and after dilution, SEK||-0.34||-1.07||-0.70||-1.40||-1.37|
|Equity per share, SEK||2.75||2.51||2.75||2.51||3.44|
An online presentation of the Interim Report will be held at 10:00 AM (CET) Friday, 12 November, 2021.
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Shortly after the end of the third quarter, Sivers Semiconductors signed an agreement relating to a transformative acquisition of the US mmWave company MixComm. The acquisition represents the merger of two prime challengers in mmWave technology, making Sivers a global leader in 5G and mmWave. It also gives us the opportunity to get our first major systems supplier customer in 5G base stations and products for satellite communication, including a customer expected to generate revenue from 2022 onwards. In addition, we gain immediate access to the important US market, including two offices in the US.
Our joint IP portfolio will cover the entire spectrum of potential areas of use for mmWave, such as unlicensed 5G, licensed 5G infrastructure, fixed wireless access (FWA), customer premises equipment (CPE) and satellite communication (SATCOM) with sector-leading performance. We are delighted to shortly be able to welcome MixComm to the Sivers family and look forward to a promising future together.
We made positive progress in the third quarter. We continued to expand the customer base and maintained an excellent dialog with new and existing customers and partners. We are seeing positive signs that the pandemic is easing its grip, although it still has an inhibitory effect on growth. Net sales were SEK 26.5 million in the third quarter, an increase of 19% year-on-year. The pandemic is also having knock-on effects in the form of general component shortages which have inhibited our customers’ access to the components needed to build planned volumes. Our customers are trying to secure alternative components and are doing their best to offset this.
Profit was negatively affected by non-recurring transaction costs attributable to acquisition costs. Last year we had provisions for social security expenses for employee stock options of a similar scale. Adjusted for these items, profit decreased slightly compared to the previous year, mainly due to planned increased personnel costs. To secure future growth, total staff reached 126 at the end of the quarter, an increase of 23 in year-on-year terms. We opened the first office on our largest market in the US in the quarter, where our first Photonics sales executive in this market is now based, in addition to 20 new colleagues at MixComm in the US who will soon be part of the family.
Activity was high in the quarter and we made several important announcements. This included our Japanese lead customer Fujikura preparing to start signing agreement for the start of full-scale, high-quality volume production of its 60 GHz communication module including a baseband modem, antenna and 5G chips (RFIC TRX BF/01) sourced from us. Alongside MixComm, we have 44 design wins including 16 expected to enter volume production within the coming 12 months. Fujikura is now preparing for large-scale production, which is an important milestone.
We also made advances in Photonics. For example, we will develop laser arrays that support Ayar Labs’ optical I/O solution. Ayar Labs is a market leader in this area and our new InP100 platform will be a key part of their success in this deployment.
In connection with signing the acquisition agreement with MixComm, we completed a directed new issue of some SEK 400 M in October, with the aim of financing part of the acquisition and strengthening our cash position. I would like to take this opportunity to thank our existing and new shareholders for the confidence shown in us. Our strengthened cash position will continue to be used for our organic and international
Many of our customers are moving towards volume production and we areconfident about the future. As societies start to open up again, we foresee considerable potential to capitalize on the hard work we have put into the company. Our competitive products and strong global network and the acquisition of MixComm ensure that we are well equipped for the future. We are in an excellent position and I remain optimistic about the future.
Anders Storm, President and CEO