RANPLAN GROUP AB – Interim report January – June 2020 (Cision) 2020-08-20 08:00
The period in summary
• Total income amounted to SEK 12.2 million (30.6 million) 1
• Operating results amounted to SEK -18.6 million (-1.6 million) 1
• Net results amounted to SEK -20.2 million (-1.6 million) 1
• Earnings per share amounted to SEK -1.01 (-0.08) 1
• Cash at the end of the period amounted to SEK 10.8 million (5.1 million) 1
1 All comparisons are made to the first half of 2019, the numbers of which have been subject to adjustments as detailed in the Annual Report for 2019. Total income comprises the sum of net sales (related to commercial products and services), other income (from research projects) and other operating income (R&D tax credits).
Significant events in the first 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, which is expected to be revenue recognised before the end of calendar 2020.
· 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 2002, 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.
Significant events after 30 June 2020
· 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.
Words from the CEO
The financial results registered in the first six months of 2020 reflect in no small part the effects of disruptions and restrictions associated with the outbreak of the COVID-19 pandemic. Net sales related to commercial products fell noticeably as a number of go-to-market activities and planned customer projects were cancelled, delayed or, for the time being, put on hold. Even so, there are no signs of any negative repercussions to underlying demand. On the contrary, there are strong reasons to believe that the experience of late will spur greater investments in wireless connectivity, particularly where it matters most in the era of 5G: inside and in close proximity to buildings. Thanks to strict cost control and solid income from research projects and tax credits, losses from operations were contained to less than SEK 20 million, an improvement compared with the second half of 2019. Robust collection of receivables helped the Company maintain gross cash on hand at SEK 11 million.
“In spite of the cumbersome conditions experienced of late, we are encouraged by recent advancements and enhancements to our product portfolio, a conspicuous surge in customer interest since the easing of lockdowns, a steady inflow of new research projects and, not least, the competence, diligence, and resilience displayed by our global workforce: we have responded well to the challenges”.
While net sales were hampered by the new corona virus, income related to research projects and tax credits extended their upward trajectories. Investments in research and development continued to rise in line with a well-defined strategy aimed at reinforcing technology leadership. To this end, special emphasis is directed at the utilisation of Artificial Intelligence, Machine Learning and Containerised Services which pave the way for leaps in performance. Significant efficiency gains can be discerned across the organisation at large, as evidenced by improved R&D output and steep reductions in expenditures related to go-to-market activities.
We remain buoyant on our ability to compete in a marketplace fuelled by a growing number of commercial opportunities, in turn sparked by several thematic forces of demand, notably an accelerating pace of 5G deployment, a wave of industrial applications, a proliferation of private networks, growing attention attached to public safety, and an embrace of open-RANs in multi-vendor settings, spurring automation and innovation at the heart of our expertise.
Our financial results will be strongly influenced by variations in net sales, in effect the pattern of revenue recognition, which by its very nature, is likely to fluctuate between reporting periods. Considering our operating leverage – the result of gross margins in the mid-to-high-90s combined with exceptionally ambitious R&D investments, all of which expensed as incurred – we abstain from providing financial guidance for 2020. Barring any unforeseen events, however, we look forward to resurrecting commercial activities in the months ahead.
Per Lindberg interim CEO, Ranplan Group AB
The complete report is attached to this press release and is available at www.ranplanwireless.com.
For further information, please contact:
Per Lindberg, interim 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 20 August, 2020 at 08.00 CEST.
About Ranplan Wireless
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, +46(0)8-528 00 399 email@example.com, is the Company's Certified Adviser at Nasdaq First North
Read full Interim report for January-June 2020