Financial performance in brief fourth quarter, October - December 2018
- Net sales amounted to SEK 170,841 (468,365), which is equivalent to a reduction by 64 per cent from the same period of 2017.
- The operating result was SEK -17,403,569 (-9,821,473), a reduction driven primarily by increased material, personnel and consulting costs.
- The result after financial items was SEK -17,485,787 (-9,895,239).
- The result after tax was SEK -17,485,787 (-9,895,239), corresponding to a result per share of SEK -1.88 (-1.90).
- Cash flow including financing activities during the quarter was SEK 3,082,877 (621,478).
- The Board of Directors proposes that no dividend be distributed.
Financial performance in brief full year 2018, January - December 2018
- Net sales amounted to SEK 1,486,816 (2,715,816), which is equivalent to a reduction of 45 per cent from the same period of 2017.
- The operating result was SEK –49,115,341 (–27,793,723), a reduction driven primarily by increased material, personnel and consulting costs.
- The result after financial items was SEK –49,315,174 (–27,968,223).
- The result after tax was SEK –49,315,174 (–27,968,223), corresponding to a result per share of
SEK –5.29 (–5.33).
- Cash flow including financing activities for the year was SEK 4,379,126 (1,360,095).
Significant events fourth quarter, October - December 2018
- New issue for SEK 25 million and diversification issue in conjunction with an IPO, with subscription at SEK 15.3 million.
- InCoax entered into an agreement with Pareto Securities AB, which acts as the company's liquidity guarantor.
- Recruitment of a new CFO, Marie Svensson, starting on 1 January 2019.
- Incoax has entered a letter of intent regarding agreement of potentiallly 100,000-200,000 apartments, with a leading System Integrator in the Middle East.
- Nasdaq approved InCoax for listing on First North.
- Approved patent: system for providing data communication over a coaxial network in the USA.
- InCoax has been recognised for its innovation work, with a nomination for the Diamond Technology Award for its solution for data communication via coaxial networks.
Significant events after the end of the quarter
- Håkan Rusk was appointed Chief Sales and Marketing Officer.
- Lightwave Innovation Review Program has honored InCoax Networks as a Lightwave Innovation Reviews High-Score Recepient for their new product family called In:xtnd™.
- InCoax has received an order for an evaluation study from a company in the construction material sector in the USA during February - April 2019 with an order value of 137,000 USD (1.26 MSEK).
In 2018, the company laid the foundation for commercialization 2019 of the new unique product generation In:xtnd™ with gigabit performance. The company has invested substantially in technology and product development, patent portfolio, organizational development, participation in trade fairs and engaging customers, as well as the purchase of key components for 2019.
The financial result in 2018 was SEK -49.3 million and net sales was SEK 1.5 million. This should not be a surprise as we on November 27 released the Investment Memorandum and December 27 press released the approval of listing on First North, as well as updates of certain financials as of November 30.
The purposeful investment in In:xtnd™ has delivered a lot: a first major letter of intent at the end of December regarding 100,000-200,000 apartments, an evaluation study with a customer in the US, and about 15 ongoing / planned customer tests at the beginning of 2019. All in all, I see good conditions for us to get initial sales of In:xtnd™ with several customers shortly.
Our priorities in 2019 are:
- Commercialise In:xtnd™ in Europe.
- Expand geographically in Europe, USA and Middle East.
- Expand leadership within MoCA Access™:
- Fiber extension.
- 5G/Fixed Mobile Convergence.
- Broaden In:xtnd™ product portfolio.
- Further develop the patent portfolio.
We are in a very interesting market situation, with the aim of building a world-leading company. In 2018 we strengthened our positions and laid the foundation. We are working intensively within a number of areas during 2019 to deliver on our financial objectives: over SEK 300 million in sales in 2020 and over SEK 1,000 million in 2023, with a long-term target EBIT margin of 20 per cent.
See the attached interim report in its entirety.
The interim report is also available at www.incoax.com.
This information is such information as InCoax Networks AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 12.20 CET on February 28 2019.