HIGH GROSS MARGINS – CONTINUED STRONG GROWTH
The period in summary
Third quarter 2018
- Revenues increased substantially and amounted to SEK 5.1 million (0.8)
- Gross Margin 95.5%
- EBITDA amounted to SEK -7.4 million (-6.1)
- Net income for the period amounted to SEK -7.5 million (-6.1)
- Earnings per share for the quarter was SEK -0.37
- Cash at end of period amounted to SEK 36.8 million.
First nine months 2018
- Revenues increased substantially and amounted to SEK 16.8 million (6.3) a growth of 168% over the first nine months of 2017
- Gross Margin 96,4%
- EBITDA amounted to SEK -18.4 million (-15.7)
- Net income for the period amounted to SEK -18.7 million (-15.9)
- Earnings per share for the nine months was SEK -0.93.
Significant events during the third quarter 2018
- Ranplan launched the latest release of its flagship wireless planning tool Ranplan Professional, the world’s first heterogeneous in-building and outdoor wireless planning tool.
Significant events after the third quarter 2018
- Ranplan awarded a contract valued at SEK 3.7 million for research into “Powering Urban Smart mobility with data analytics”
- Ranplan signs a reseller agreement with Marubun, a Tokyo-based company, to sell Ranplan software solutions into the Japanese market.
Comment from the CEO
Ranplan revenues for the third quarter amounted to SEK 5.1 million, with a gross margin of 95.5 %. On a comparative year-on-year basis for the first 9 months of 2018 we have grown our revenues by 168 % over the same period in 2017 from SEK 6,3 million in 2017 to SEK 16.8 million in 2018 and improved the gross margin from 84.8 % to 96.4 %.
This exponential growth is driven by two main factors: First, the increasing globalisation of our expanding sales force. Second, the pent-up demand for our software solutions needed to plan and optimise in-building wireless networks specifically for 4G (LTE) and emerging 5G networks in the mobile communication sector.
On a geographical analysis in Q3 we continued to generate strong revenues from China and USA.
Ranplan secured five new customers in Q3 and also received repeat business from six existing customers, demonstrating their belief and satisfaction in the quality of our planning solutions. 5G is currently a very hot topic globally, and we are very proud to have announced the launch of Ranplan Professional 5.2. This latest release of our flagship product is the World’s first heterogeneous in-building and outdoor wireless planning tool supporting 5G. It represents a significant milestone in our strategic plan in being a leader in 5G by providing the telecommunication industry with software solutions to cost effectively and accurately plan, design and optimise the next generation of mobile networks.
We currently see the evolution and early adoption of 5G being strongest in the United States, China, Japan and South Korea, followed by Europe. Verizon in the USA, which in late 2017 approved the use of Ranplan software solutions among its partner ecosystem, announced in October 2018 the launch of the first commercial 5G network. We are also in advanced discussions with some of the World’s other major operators relating to their needs for 5G network planning.
Our research and development arm has recently been awarded a contract valued at SEK 3.7 million to deliver research into Powering Urban Smart Mobility with data analytics. This research could lead to the development of smart tools using wireless network data that would provide consumers with efficient real time route planning capabilities, directing people’s travel plans based on carbon footprint, type of transport, congestion, cost and many other smart factors important to us all in an environmentally conscious world.
We continue to enjoy strong demand for our products and services from all targeted segments. We have, in each quarter of this year, doubled or more than doubled our revenues in 2018 on a comparative quarterly basis versus 2017. These developments are encouraging, and coupled with the latest release of our software solutions we, as a company, are highly motivated to deliver against our strategic plans. Lastly, I thank our dedicated team of employees for their great efforts over the past three months. We continue to view the future in favourable light.
CEO Ranplan Group AB
The complete half-year report is attached to this press release and is available at www.ranplanwireless.com.
This information is such information that Ranplan Group AB is obliged to disclose under the EU Market Abuse Regulation. The information was provided by the above contact person for publication on November 30, 2018 at. 08:00 CET.
Ranplan Wireless is an innovative wireless technology company that has developed the World’s only solution that can plan, design and optimise inbuilding and outdoor wireless networks in coordination. Our solutions enable us to help an ecosystem of companies deploy the next generation of wireless networks for a range of applications in urban environments, supporting multiple technologies such as 4G LTE, 5G, Wifi and IoT, 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, US and China.
FNCA Sweden AB is the Company's Certified Adviser at Nasdaq First North.