Q2 REVENUES GROW by 159% – AMID INCREASINGLY STRONG DEMAND
The period in summary
Second quarter 2018
- Revenues increased substantially and amounted to SEK 5.0 million (1.9)[1] a growth of 159% over Q2 2017.
- Order backlog as per 30 June 2018 amounting to SEK 6.3 million (1.3)
- IPO Transaction Costs for the period were SEK 13.1 million (versus an estimate of SEK 15 million)
- EBITDA amounted to SEK -19.7 million (-5.2), corresponding to a negative EBITDA margin
- Net income for the period amounted to SEK -20.0 milion (-5.2)
- Earnings per share amounted to SEK -0.99 ( -0.46).
- Cash at end of period amounted to SEK 55.6 million
First half 2018
- Revenues increased substantially and amounted to SEK 11.6 million (5.3) a growth of 119% over first half 2017.
- IPO Transaction Costs for the period were SEK 13.1 million
- EBITDA amounted to SEK -21.8 million (-9.8), corresponding to a negative EBITDA margin
- Excluding IPO Transaction Costs, EBITDA amounted to SEK -8.9 million (-9.8), corresponding to a negative EBITDA margin
- Net income for the period amounted to SEK -22.2 million (-9.9)
- Earnings per share amounted to SEK -1.10 ( -0.46).
Significant events during the second quarter 2018
- Ranplan listed on NASDAQ First North on the 28th June 2018 raising SEK 62 million before and SEK 49 million after transaction costs. The IPO added approximately 600 new investors to Ranplan’s shareholder roster.
- Ranplan opens an office in Dallas, USA, to support customer growth in the region.
Significant events after the second quarter 2018
- Ranplan received SEK 4.0 million in cash as R&D Tax credit from UK Government for development work undertaken by the Company in 2017. Ranplan has received R&D Tax credits for the 6th year running.
Comment from the CEO
The second quarter is traditionally slower than the first quarter due to customer budget cycles. However, we are extremely pleased to announce our revenues of SEK 5.0 million in Q2 2018, an increase of 159% over Q2 2017, an appreciable acceleration from the year-on-year rate-of-growth of 96% registered in the first quarter of 2018.
This results in first half 2018 revenues of SEK 11.6 million compared to SEK 5.3 million in the corresponding period in 2017. The corresponding increase of 119% underpins management’s belief that the company is delivering on its business plan.
At the end of June 2018, the company had an order backlog of SEK 6.3 million, up from SEK 1.3 million a year earlier. Orders may be lumpy in character and the time to delivery (revenue recognition) tend to vary.
The increase in revenue in Q2 was mainly attributed to the USA, Europe and China. Orders were booked from 6 new customers. In the second quarter of 2018, Ranplan booked revenues from 18 customers.
In China, we were awarded two new contracts with China Mobile. In Europe, we secured new customer wins, and received repeat business as existing customers increased the number of Ranplan licenses they wish to use. In the USA, we welcomed RadioOne as a preferred customer, as announced on 11 July 2018.
To support our customers and build on our growth ambitions, we have opened an office in the USA. As previously reported, the recent endorsement by Verizon has paved the way for sales of Ranplan products in the USA. We are now seeking involvement with other large mobile operators in the USA both technically and commercially.
The majority of our revenues came from the Mobile Communication market, however we also received orders from the Public Safety segment, reinfocing our strategy of expanding our business universe. This category of customers adds impetus to our optimism, contributing to growth in future periods.
In the second quarter Ranplan was actively engaged in promoting its products globally. The company featured quite prominently in trade conferences ranging from 5G Americas in USA, Small Cells World Summit and 5G World Summit in UK, CommunicAsia in Singapore and Interop in Japan.
Planning 5G networks is complex and as 5G starts to become a reality with trials in 2018 we are experiencing increased demand from both mobile operators and telecommunication equipment vendors for our products. We have engaged with major service providers in the key early adopter 5G markets in USA and China supported by our in-country subsidiaries and through partners in Japan and Korea.
In respect of our products, we successfully launched Release 5.1 in Q2 2018 with new features supporting 5G wireless network planning as well as enhancing the usability of the software. Furthermore, we are planning to launch Release 5.2 in Q3 2018 addressing more advanced 5G features as the standards become available.
We enjoy strong demand for our products and services from all targeted segments, motivating us to undergo a transition from a start-up to a scale-up. After completing the IPO, in the process of which attracting vital new growth capital, Ranplan now sets its sight on expanding its business reach to meet the long-term objectives outlined in the IPO prospectus. To this end, investments are currently being made primarily in sales and marketing, local technical support, and software development. I thank our dedicated team of employees for their great efforts in the past three months and continue to view the future of Ranplan in favourable light.
Alastair Williamson
CEO Ranplan Group AB
The complete half-year report is attached to this press release and is available at www.ranplanwireless.com.
For more information:
Alastair Williamson, CEO
Tel: +44 7824 997689
Alastair.Williamson@ranplanwireless.com
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 August 31, 2018 at. 08:00 CET.
About Ranplan
Ranplan is an innovative wireless technology company that has developed world leading software tools for outdoor/indoor wireless network planning, design and optimisation, using advanced 3D building modelling and radio propagation simulation. The company is at the forefront of research and development for radio propagation, femto/small cell design, automatic RAN optimisation and the deployment of complex multi-layer, densified urban networks. For more information, please see www.ranplanwireless.com.
Certified Adviser
FNCA Sweden AB is the Company's Certified Adviser at Nasdaq First North.
[1] Figures inside parentheses refer to the corresponding figures for the previous fiscal year throughout this Q2 report.
