Oslo Stock Exchange
is the global leader in liquid cooling solutions for data centers,
servers and PCs. Founded in 2000, Asetek is headquartered in Denmark
and has operations in California, Texas, China and Taiwan. Asetek is
listed on the Oslo Stock Exchange (ASETEK.OL).
Asetek - Q3 2017: Revenue Growth Driven by High-end Gaming Cooling Demand
OSLO, Oct. 25, 2017
Q3 revenue growth of 24% driven by high-end gaming cooling demand
USD 1.4 million pre-tax profit and $3.0 million EBITDA adjusted in the quarter
New desktop product developments with Lenovo and AMD
Full-year 2017 data center revenue expectation changed: Now
anticipating roughly the same level as in 2016 due to an unexpected
adjustment to a large anticipated order in Q4
Firming up full-year 2017 desktop revenue growth expectations to 15% - 20% compared to the earlier announced 10%-20%
/PRNewswire/ -- Asetek reported revenue of $17.7 million in the third
quarter of 2017, an increase of 24% from the third quarter of 2016 on
higher desktop revenue driven by shipments in the DIY market. Growth in
the quarter also reflects an increase in shipment of data center
products to OEMs. Revenue for the first nine months ending 30 September
was $40.3 million, an increase of 22% from the same period of 2016.
"While we are on track for another year of growth and record group
revenue driven by our desktop segment, we are not satisfied with not
meeting our expectations for the data center segment towards the end of
2017", said Andre Sloth Eriksen, CEO and founder of Asetek. "However,
as we have stated repeatedly, with only a few OEMs signed up at this
time as well as a lumpy order intake we have to accept fluctuations
while our emerging data center business is maturing. Our confidence in,
and strategy for, the long-term development of the data center business
and market, remain unchanged."
EBITDA adjusted for share based compensation expense was $3.0 million
in the third quarter of 2017, compared with EBITDA adjusted of $2.8
million in the third quarter of 2016. First nine months 2017 EBITDA
adjusted was $4.8 million, compared to $4.3 million for the first nine
months of 2016.
Desktop revenue was $15.6 million in the third quarter, an increase of
26% from the same period of 2016. Operating profit from the desktop
segment was $5.1 million, an increase from $4.5 million in the same
period last year due to an increase in DIY sales.
During the quarter, Asetek announced that its retention kits will be
included with shipments of AMD's new Ryzen Threadripper CPUs.
Retention kits enable desktop customers to easily attach Asetek cooling
systems to processors. Also in the third quarter, Asetek
announced that its products will liquid cool Lenovo's Legion Y920 tower
computer, a new high-performance gaming machine.
Data center revenue was $2.0 million, an increase from $1.8 million in
the prior year due to an increase in shipments to OEM customers.
Revenue variability is expected to continue while the Company secures
new OEM partners and growth of end-user adoption through existing OEM
Asetek continued to invest in its data center business and the segment
operating loss was $1.6 million for the third quarter, compared with
$1.0 million in the same period of 2016. Expenditures relate to
technology development, manufacturing, and sales development with data
center partners and OEM customers.
Through new orders received from data center OEM partners in the first
nine months of 2017, Asetek is increasing its end-user adoption with
technology deployed to new HPC installations. In the third
quarter 2017, Asetek received multiple orders from Penguin Computing
for RackCDU D2C™ (Direct-to-Chip) liquid cooling for two HPC sites at
U.S. Department of Energy National Laboratories.
Due to an unexpected adjustment to a large anticipated order in Q4, the
full-year 2017 data center expectation has been changed. Asetek now
anticipates revenue at roughly the same level as in 2016. Outlook for
the desktop segment is firmed up, to a full-year 2017 revenue growth
expectation of 15%-20%.
London, United Kingdom:
New York, United States of America:
Confirmation code: 9419107
Please join the third quarter 2017 results webcast by clicking here.
The third quarter 2017 Report and presentation will also be made
available on www.asetek.com and www.newsweb.no, as well as through news
agencies. A recorded version of the presentation will be made available
on www.asetek.com approximately two hours after the broadcast has
concluded. Asetek's press room is available on
For questions or further information, please contact:
CEO and Founder
André S. Eriksen
Peter Dam Madsen
Asetek is the global leader in liquid cooling solutions for data
centers, servers and PCs. Founded in 2000, Asetek is headquartered in
Denmark and has operations in California, Texas, China and Taiwan.
Asetek is listed on the Oslo Stock Exchange (ASETEK.OL).
This information was brought to you by Cision http://news.cision.com
The following files are available for download:
Asetek Q3 2017 Presentation
Asetek Q3 2017 Report