Pexip falls as no guidance for growth weighs

Pexip Holding ASA

12/08/2022 12:21

** Shares in Pexip  PEXIP.OL  fall almost 16%, with an
analyst pointing to insufficient cost cutting measures of the
Norwegian provider of videoconferencing solutions  urn:newsml:reuters.com:*:nASM000N1D
    ** The company said on Thursday that it plans an additional
NOK 100 million of savings during the coming three quarters
beside an already planned cost-savings plan of NOK 196 million
    ** Pexip said its second quarter adjusted EBITDA came to a
loss of NOK 98.9 million ($10.39 million), though it expects to
return to a positive EBITDA in Q4 of 2022
    ** Analyst Øystein Elton Lodgaard from ABG Sundal Collier
says that though the cost-cuts might be enough to reach
profitability it will not suffice to make the stock appear
attractive at the current levels
    ** Lodgaard adds that Pexip also says that growth in Q3 will
be negative or flat as Pexip loses its single largest customer,
meaning the company are guiding for disappointing growth
    ** "Combination of cost level being too high, as well as the
company not being able to deliver growth is probably what keeps
the shares down today," Lodgaard says
    ** "Either you'll see that growth accelerates again at some
point, otherwise they'll have to initiate a second round of cost
cuts" Lodgaard says
    
    
    


($1 = 9.5220 Norwegian crowns)

 (Reporting by Marie Mannes)
 ((marie.mannes@thomsonreuters.com))