Sivers Press
Fourth quarter 2021 Revenue amounted to SEK 23.390 M (29.707), a decrease of 21% Profit before depreciation and amortization (EBITDA) amounted to SEK -23.422 M (3.108) Operating profit/loss (EBIT) for the quarter was SEK -33.223 M (-4.632) Profit/loss after tax was SEK -25.108 M (-0.563) Earnings per share before and after dilution was SEK -0.15 (0.00) Equity per share amounted to SEK 4.57 (3.41) Profit for the quarter was negatively affected by acquisition costs of SEK 4.186 M.
January- December 2021:
Significant events in the fourth quarter:
Significant events after the end of the period:
Key performance indicators
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| SEK 000 | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Revenue | 23,390 | 29,707 | 90,652 | 96,170 |
| EBITDA | -23,422 | 3,108 | -107,185 | -55,661 |
| EBIT | -33,223 | -4,632 | -140,941 | -85,710 |
| Profit/loss for the period | -25,108 | -563 | -133,704 | -195,782 |
| Earnings per share before and after dilution, SEK | -0.15 | 0.00 | -0.83 | -1.37 |
| Equity per share, SEK | 4.57 | 3.41 | 4.57 | 3.41 |
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CEO’s Statement
During the quarter, we signed an agreement relating to a transformative acquisition of the US 5G/mmWave company MixComm. The acquisition, which is expected to be completed shortly, involves the merger of two of the main challengers in mmWave technology, making us one of the leading suppliers in 5G/mmWave technology.
MixComm has made positive progress since the announcement of the acquisition, including signing a Memorandum of Understanding with South Korean venture capital firm Kreemo to develop the world’s first 5G-modul optimized for metaverse. In the period, MixComm also received a small order from a leading Tier 1 5G infrastructure customer.
Progress has been positive internally within MixComm and we also take a positive view of the new opportunities that the acquisition opens up for the entire company. Wireless is now seeing new types of US customers thanks to increased presence in the US. Alongside MixComm, we have now secured 44 design wins, including 16 that are expected to enter volume production within the coming 12 months.
Our new US network also means that Global Foundries, premiere semiconductor contract manufacturer in underlying advanced radio technology for 5G and SATCOM, becomes one of our new owners. We previously frequently sourced silicon wafers from Global Foundries through third parties; the acquisition now allows us to procure silicon wafers directly to ensure delivery and improve margins.
The pandemic continued to inhibit progress in the fourth quarter, although we are optimistic that it will start to loosen its grip from the second half year 2022 onwards. Net sales in the fourth quarter totaled SEK 23 million, down 21 percent year-on-year. In the short term, our biggest challenge is the effect of the pandemic in the form of general component shortages that restrict our customers’ access to the components needed to build planned volumes. In order to mitigate the component shortages, our customers have sought out alternative components which has led to redesigns throughout the ecosystem. This in turn has led to delays of an estimated 6–9 months including projects planned for 2023 and onwards. Furthermore, components shortages force our customers to shift their resources to older products. Virtually all our customers are experiencing similar challenges at the moment, which has a short-term impact on new design-wins as our customers have insufficient resources to start new projects. One example is provided by the volume order for unlicensed 5G RF modules we received from Lithuanian hi tech company 8devices.
Their order was delayed because of a shortage of standard clock buffers, which led to a delay of around six months for the entire product. However, it is pleasing that this situation has now been resolved and we won an order of USD 2.1 M in January 2022. Photonics received two new orders totaling SEK 5.3 M in the quarter, relating to customized sensors in a new application area from a US-based customer. We hope for strong order growth at a later stage as customers shift to volume production.
In connection with the acquisition of MixComm, in October we completed a directed new issue of some SEK 400 M to finance part of the acquisition and strengthen our cash position. I would like to take the opportunity to thank our existing and new shareholders for the confidence they have shown us.
I want to reiterate that we are looking to the future with great confidence as it is clear that many of our customers are heading for volume production, for example Fujikura which signed the previously communicated framework agreement. The pandemic and associated components shortages have had an extraordinary impact on our sector, which has led to delays to plans across the entire ecosystem. However, the underlying demand is there and we have not lost any customers. As soon as societies start to open up again, we anticipate 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 enables us to be equipped for the future. We are in an excellent position and I remain optimistic about the future.
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 15 February 2022 at 08:00 CET.
