Brief: Serstech Q2 Net Loss Narrows To SEK 2.0 Million

Serstech AB

15/07/2022 07:42

July 15 (Reuters) - Serstech AB  SERT.ST :
    * SERSTECH HALF YEAR REPORT 2022
    * SERSTECH AB Q2 NET SALES SEK 8.4 MILLION VERSUS SEK 2.8
MILLION
YEAR AGO
    * Q2 PROFIT FOR PERIOD: KSEK -1 986 (-5 299)
    * DURING Q2 ACTIVITY AMONG OUR CUSTOMERS WAS ALMOST AT A
PRE-PANDEMIC LEVEL IN EUROPE AND UNITED STATES
    * WE HAVE SEEN THAT UKRAINE WAR HAS CAUSED SOME DELAYS IN
PURCHASE
DECISIONS AND INCREASED LIKELIHOOD OF A RECESSION COULD
POTENTIALLY CAUSE FURTHER DELAYS OVER NEXT TWELVE MONTHS
    * SECURITY INDUSTRY IS, GENERALLY SPEAKING, LESS AFFECTED
THAN
OTHER INDUSTRIES BY A DOWNTURN IN ECONOMY, BUT A DOWNTURN COULD
CAUSE LEAD TIMES IN SALES CYCLES TO INCREASE
    * BASED ON MANY TENDERS CURRENTLY OPEN FOR BIDS AND OUR
HISTORICAL
HIT-RATE, WE EXPECT TO GET SOME ADDITIONAL LARGE ORDERS OVER
NEXT 12 MONTHS
    * DUE TO PAYMENT TERMS IN MOST TENDERS, WE WILL HOWEVER NEED
TO
PAY FOR PRODUCTION COSTS (COGS) BEFORE WE GET PAID FROM OUR
PARTNERS, WHICH HAS CREATED A NEED FOR A CASH BUFFER
    * ESPITE COMPONENT SHORTAGE, WE EXPECT TO BE ABLE TO PRODUCE
ENOUGH INSTRUMENTS TO MEET DEMAND IN 2022
    * WE HAVE ALSO SEEN A 10-15% INCREASE IN PRODUCTION COST,
ESPECIALLY DRIVEN BY INCREASED COMPONENT PRICES
    * TWO-YEAR ABSENCE OF NEW SALES OPPORTUNITIES IN OUR
INDUSTRY IS
COMING TO AN END AND WE EXPECT 2022 TO GET US BACK TO GROWTH

Source text for Eikon:  ID:nGNE4CzsBD 
Further company coverage:  SERT.ST 

 (Gdansk Newsroom)
 ((gdansk.newsroom@thomsonreuters.com; +48 58 7696600;))