The period in summary
Second half of 2020 (second half of 2019 in brackets)
- Total income amounted to SEK 13.2 million (16.7 million) 1
- Operating income amounted to SEK -14.1 million (-22.3 million) 1
- Net Income for the period amounted to SEK -15.3 million(-22.9 million) 1
- Earnings per share was SEK -0.70 (-1.15) 1
- Cash at the end of period amounted to SEK 2.6 million (10.8 million)
Full year of 2020 (full year 2019 in brackets)
- Total income amounted to SEK 25.1 million1 (47.4 million) 1
- Operating income amounted to SEK -33.7 million (-23.9 million) 1
- Net Income amounted to SEK -36.5 million (-24.5 million) 1
- Earnings per share was SEK -1.74 (-1.22) 1
- Cash at the end of period amounted to SEK 2.6 million (10.8 million)
- The Board proposes that no dividend be paid for 2020
1 All comparisons are made to the second half or full year of 2019. Minor adjustments have been made to the financial statements for the first six months of 2020. Total income comprises the sum of net sales (commercial products and services), other income (research projects) and other operating income (R&D related tax credits).
Significant events during the first and second half of 2020
- On 6 January 2020, Ranplan press released a partnership with the Network Technology Research Institute of China Unicom, resulting in an initial purchase order of around USD 400k.
- On 29 January 2020, Ranplan Group AB resolved to appoint George Wells, the Group Chief Accountant since August 2018 – as Chief Financial Officer (CFO), effective 26 February 2020.
- On 3 March 2020, Ranplan declared that it has been awarded an EU sponsored research project worth EUR 225k into how AI-based data analytics can help optimise network slicing.
- At the end of March 2020, it was announced that Per Lindberg, interim CEO, has expanded the size of the credit line to SEK 50 million (from SEK 30 million) on the same terms and conditions. Access to the credit line is free of charge and will be available until 17 July 2024. In the event of draw-downs on this facility, interest will be charged at a rate of 1% per month.
- At the AGM in Stockholm, Sweden on 15 June 2020, it was resolved that Tomas Isaksson be elected chairman of the board, that Jie Zhang, Wendy Yang and Per Lindberg be re-elected and that Jinxing Xue and Jon Ullmark be newly elected as ordinary members of the board.
- On 29 June 2020, Ranplan Wireless announced the launch of PRO 6.1 – a landmark release that brings 5G NR enhancements, a novel network device database, a full array of eye-opening features and improved user experience to the marketplace.
- On 1 July 2020, Ranplan Wireless communicated that it is the proud recipient of the prestigious SCF Small Cell Awards 2020, representing outstanding achievement and contribution in the field of automated cloud-based network planning and optimisation.
- On 17 July 2020, Ranplan Wireless announced that it has been recognised by the European Commission as ‘key innovator’ and selected for entry onto its Innovation Radar platform.
- On 3 August 2020, Ranplan Wireless declared that it has been selected by Engineering Wireless Services (“EWS”) as Preferred Software Partner for all HetNet deployments.
- On 14 September 2020, the Board of Directors of Ranplan Group AB resolved to appoint Per Lindberg as permanent CEO. Per Lindberg will remain as a member of the Board of Directors.
- In the second half of 2020, Ranplan issued – at fair value – 985 000 warrants (2023 program) to members of its global workforce. The transactions increased equity and cash by c. SEK 58 000.
- On 19 October 2020, shareholders voted in favour of a Set-Off issue whereby all outstanding loans at the end of September 2020 be converted into equity. Following completion of the Set-Off issue the number of shares outstanding increased from 20 115 812 to 24 138 242.
- The Nomination Committee for the AGM 2021 consists of the elected chairperson Wendy Yang (representing the third largest shareholder Hongbing Li + Qimei Wu), Jinxing Xue, Per Lindberg (CEO) and Tomas Isaksson (Chairman of the Board). The Nomination Committee will inter alia present a proposal regarding the composition and members of the board, their remuneration, the selection and remuneration of the Company’s auditor(s) as well as procedures for the appointment of the Nomination Committee in advance of the AGM 2021.
- On 30 November 2020, Ranplan Wireless announced that it is the proud recipient of a UK Innovate research award to advance the development of its microservice platform and apply machine learning to improve prediction accuracy.
Significant events after the end of calendar 2020
On 10 Feb 2021, Ranplan Wireless announced that it partners with Magna Systems, a market leader in providing comprehensive and innovative RF solutions in the Asia Pacific region.
Words from the CEO
After experiencing one of the most tumultuous periods in living memory, one that hampered business confidence, hindered sales activity, postponed revenue recognition and hastened corrective action, we can look back at a year which does not seem to provide much guidance as to what the future may have in store. In 2020, Ranplan saw several key projects frozen, deferred or even called off, either by necessity (restrictions to carry out services) or by priority (limitation of capital and physical resources). Net sales emanating from commercial products and services, hence, were severely impaired. All other essential lines in the income statement, however, showed improvements in 2020 versus 2019. Income drawn from research projects and tax credits rose by 51% and 28%, respectively. Operating expenditures, helped by FX, fell by 17%. The gross margin, a measure of leverage, rose. Courtesy of a debt-for-equity swap, the balance sheet was reinforced.
Feedback from customers, large and small, suggests that our software components, within the desktop or the cloud, continue to advance. Expansion of our network of partners, some of which in early phases, others more advanced, points to emerging business opportunities. Top scores from the most recent quality inspection (BSI) lend credence to the efficiency and quality of operations. A steady inflow of forward-looking research projects helps to set us positively apart from our peers.
In the months ahead, we will invest to fortify our technology leadership, accelerate development of cloud-native software solutions, cement customer relationships and broaden our strategic partnerships. Whilst the pandemic has had a stifling effect on business activities since the beginning of 2020, we harbour little doubt that underlying demand remains robust and solid, spurred by the deployment of 5G in higher frequency bands, the proliferation of private wireless networks, and relentless efforts to pursue massive efficiency gains through automation of manual processes. In light of prevailing uncertainties regarding the re-opening of society (as we once knew it), we abstain from providing financial guidance for calendar 2021. Nevertheless, once a greater degree of normalcy has been restored, we aim to achieve significantly improved financial results, capitalising on a broader and richer suite of products and the intrinsic leverage built into the business model.
On a final note, we are cognisant of the fact that our organisation serves a broader purpose within the fabric of society at large: the importance of reliable and trusted connectivity, for the provision of ubiquitous and unperturbed internet and telecom services, within or outside the walls of buildings, has never been more apparent. I wish to thank all contractors, employees and partners for the dedication, loyalty, and tenacity that they have displayed. These are admirable traits that we seek to cultivate and nurture, ones that help us overcome challenges in times good and bad.
Per Lindberg, CEO
The complete report is attached to this press release and is available at www.ranplanwireless.com.
For further information, please contact:
Per Lindberg, CEO
Tel: +46 793407592
This information is information that Ranplan Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person above, on 18 Feb, 2021 at 08.00 CET.
About Ranplan Wireless
Ranplan Wireless pioneers software solutions that help perfect the design, optimisation and automation of in-building and urban outdoor wireless networks, either in isolation or in coordination. Our solutions enable an ecosystem of companies to deploy next generation wireless networks for a range of applications, supporting multiple technologies such as 4G LTE, 5G, Wi Fi, IoT, TETRA and P25, providing end users with an unmatched quality of experience.
Ranplan Wireless is a subsidiary of Ranplan Group AB (Nasdaq First North: RPLAN) whose head office is in Stockholm, Sweden. The group operates out of offices in the UK, USA and China.
FNCA Sweden AB, +46(0)8-528 00 399 firstname.lastname@example.org, is the Company’s Certified Adviser at Nasdaq First North