RANPLAN GROUP AB – Annual Statement 2019

20th February 2020 - 07:00 GMT

The period in summary

Second half 2019

  • Total revenues amounted to SEK 17.6 million1 (14.2 million)1
  • Operating income amounted to SEK -22.5 million1 (-16.3 million) 1
  • Net Income for the period amounted to SEK -1 million1 (-16.3 million)1
  • Earnings per share was SEK -1.151 (-0.81)1
  • Cash at the end of period amounted to SEK 0 million

Full year 2019

  • Total revenues amounted to SEK 47.5 million1
  • Operating income amounted to SEK -24.9 million1
  • Net Income amounted to SEK -25.5 million1
  • Earnings per share was SEK -1.271
  • Cash at the end of period amounted to SEK 11.0 million
  • The Board proposes that no dividend be paid for 2019.

1 Adjustments related to research projects and tax credits have been made to better reflect the financial effects. Total Revenues have been restated to comprise the sum of net sales (related to commercial products and services), other income (from research projects) and other operating income (drawn from R&D tax credits).

Significant events during the second half of 2019

  • On 1 July 2019, John Watson took over the baton as CFO of Ranplan Group AB.
  • Credit line of up to SEK 30 millon established with Per Lindberg, member of the Board.
  • Lars-Inge Sjöqkvist stepped down from the board of directors of Ranplan Group AB.
  • At an EGM on 14 August 2019, it was resolved that Tomas Isaksson be elected as a new ordinary member and Jie Zhang as new Chairman of the board. Following the EGM, the board consists of Jie Zhang (Chairman), Wendy Yang, Tomas Isaksson and Per Lindberg (interim CEO).
  • On 1 Sept 2019, Per Lindberg assumed the role of interim CEO of Ranplan Group AB.
  • On 2 Sept 2019, Ranplan declared that it shifts to a half-year reporting cycle from H2 2019.
  • In September 2019, Ranplan announced the recruitment of Anthony Sutton as Commercial Operations Director and Jon Ullmark as Chief Strategy Officer.
  • In October 2019, Ranplan activated an incentive plan (warrants sold at fair market value) for key employees (625 200 warrants, strike price SEK 20.60 by end of 2022, sold at fair value).
  • In October 2019, Ranplan Wireless joined the O-RAN alliance to help spur innovation and automation in an environment marked by open interfaces and multi-vendor interoperability.
  • In November 2010, Ranplan Wireless announced that it has been awarded EUR 600k for an EU-Horizon 5G Network Slicing Project over four years, commencing on 1 Dec 2019. Partners include CNR of Italy, Orange Labs of France and the University of Cambridge of the United Kingdom.

Significant events after the end of calendar 2019

  • Ranplan Wireless was selected as the preferred supplier of indoor radio design tools by China Unicom Network Technology Research Institute of the People’s Republic of China. An initial purchase order in the region of USD 400k is expected to be revenue recognised in calendar 2020.
  • Ranplan Wireless announced the release of Professional 6.0, including its next generation of radio propagation engines, dubbed Maxwell, exhibiting a deterministic true vector-based ray launcing/tracing model, prepared for 5G mm waves as well as cluster computing within clouds.
  • The income statement was amended to better reflect the Company’s operations and financial performance and to offer investors greater insights into the components of total revenues. The latter is defined as the sum of net sales (from commercial products and services), other income (from research projects) and other operating income (from R&D tax credits). Adjustments have been made in the same vein to previous reporting periods to facilitate direct comparisons.

Significant events during calendar 2019

  • Ranplan Wireless secured a significant order with an initial value of USD 2.5 million (SEK 22.5 million) for its suite of network planning tools from Marubun Corporation, its reselling partner in Japan. This landmark contract demonstrates the benefits of integrating Ranplan’s tools into the operating support systems (OSSs) of mobile operators keen to take automation to a higher level.
  • Ranplan entered into a reseller agreement with Tricomtek, a Seoul-based company, to sell Ranplan software solutions into the South Korean market.
  • Ranplan won a leading role in a high-profile Network Slicing Project sponsored by the EU. The monetary value is expected to amount to at least EUR 600k over a four-year period.
  • Employee Incentive Plan: Acting on a mandate issued at the AGM in the spring of 2019, Ranplan sold – at market value – 625 200 warrants to its members of its global workforce. The transactions increased equity and cash by c. SEK 856 000 before associated fees and other costs.
  • The Nomination Committee for the AGM 2020 consists of Wendy Yang (representing the two largest shareholders Jinxing Xue and Hongbing Li), Per Lindberg (interim CEO) and Jie Zhang (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

Words from the CEO

In 2019, Ranplan registered more than a doubling in net sales on the back of a milestone purchase order from our reseller Marubun in Japan. Losses from operations were largely on a par with those of 2018, but, notably, the Company generated a slight surplus before R&D (nothing of which capitalised). After experiencing delays to the finalisation of several contract negotiations in the latter part of 2019, the Company managed to close a significant partnership with China Unicom Network Technology Research Institute in the very beginning of 2020. Commercial discussions continue with leading customers and partners in most part of the world. Underlying demand remains strong, spurred by the 5G investment wave, industrial applications, greater emphasis on automation and optimising before and after the initial deployment of wireless networks.

“Whilst the second half of the year did not meet our expectations in terms of revenue recognition, we take solace in recent contract wins, ongoing field trials with existing and prospective customers, solid inflow of government-sponsored research projects, encouraging feedback on our latest product launches and near-term roadmaps, as well as the dedication, expertise and tenacity of our workforce. We wish to reiterate that the very nature of the Company’s operations – characterised by extraordinarily rich gross margins in combination with exceptionally high R&D expenses (71% of sales in 2019) – entail that its financial performance may exhibit marked fluctuations between consecutive reporting periods”,

As the decade of real 5G begins to dawn, Ranplan sets its sights on broadening its offerings, cementing its product leadership and expanding its market reach. To this end, it welcomes system development and go-to-market partnerships which complement its own R&D and direct sales channels. Its pioneering mission is to spearhead holistic wireless design at a time of heightened interest in the deployment of 4G/5G networks within the walls of and in close proximity to buildings. Private wireless networks, buoyed by CBRS, are set to bolster demand.

Since the timing of new contracts or other forms of commercial arrangements are subject to considerable uncertainties – that do not lend themselves to forecasting precision – it is not appropriate to provide any financial guidance for 2020 or beyond. Even so, our ambitions remain clear and our directions are steered by fascinating opportunities, buoyed by the criticality of 5G connectivity, optimisation and automation of network management systems. In 2020, special efforts will be devoted to extracting maximum efficiency from existing resources, refining the decision-making framework and reinforcing our leadership in HetNets.

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

Per.Lindberg@ranplanwireless.com

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 Feb, 2020 at 08.00 CET.

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.

www.ranplanwireless.com

Certified Adviser

FNCA Sweden AB, +46(0)8-528 00 399 info@fnca.se, is the Company’s Certified Adviser at Nasdaq First North

Read the report