The period in summary
First quarter 2019
*From Consolidated Financial Statements 3 months to 31 March 2019
**Figures inside parentheses refer to the corresponding figures for the previous fiscal year throughout this Q1 report.
***From Combined Financial Statements
**** From Consolidated Balance Sheet 31 March 2019
Significant events during the first quarter 2019
Words from the CEO
Ranplan reports the company’s first ever profitable period in Q1 2019 and received a Purchase Order in Q1 for SEK 22.5 million from our partner Marubun in Japan, creating a solid platform for continued revenue growth in 2019.
Ranplan revenues for first quarter amounted to SEK 12.8 million, with a gross margin of 99.3% On a comparative quarter-on quarter basis for the first 3 months of 2019 we have grown our revenues by 92% over the same period in 2018, from SEK 6.7 million in 2018 to SEK 12.8 million in 2019.
The Company delivered a profit from operations of SEK 0.2 million in Q1 2019 compared with losses from operations of SEK -3.4 million in Q1 2018 demonstrating the positive strategic direction the company has embarked on in the last 12 months. The company will continue to make the strategic investments in strengthening its current product offering, broadening its portfolio for the future and above all expanding its global sales reach.
Cash and cash receivables amounted to SEK 38.9 million by end of this period, largely on level with SEK 38.1 million at the end of calendar 2018.
We are very pleased to report that the Company essentially doubled its revenue intake on a year-on-year basis in Q1 2019 and we see solid opportunities for strong growth for the remainder of this year, courtesy of the recently registered purchase order for SEK 22.5 million from our partner in Japan.
The Company maintains a robust gross margin of 99.3% in the quarter just ended, once again reflecting the pure licensing nature of our business model.
In 2018 the Company invested in developing 5G functionality in our products and we are now reaping the benefit of that investment as 5G has become a reality in 2019. We expect 5G to further fuel the expansion of Ranplan as it has prompted significant interest from existing and prospective customers alike. It should be stressed, though, that we – 5G notwithstanding – still experience rich demand also for tools aimed at planning and optimising 4G (LTE) networks in the most challenging conditions within buildings and in dense outdoor urban environments. On a regional basis, the Company generated more than 90% of its revenues in Q1 2019 from Japan, Europe, the USA and China.
Ranplan Secured 8 new customers in Q1 2019 and received repeat business from several existing customers, demonstrating key clients’ belief in and satisfaction with the productivity, quality and usefulness of our planning and optimization solutions.
As of the end of 2018, 192 operators in 81 countries are trialling or actually deploying 5G networks suggesting that a major new investment wave is well underway. Ranplan anticipates that the initial phase of deployments will be focused on in-buildings and dense urban environments – areas perfectly matching its centre of expertise.
The most robust 5G momentum is currently witnessed in the United States, China, Japan and South Korea, followed by Europe, all regions where Ranplan already has invested and will seek to continually invest to build a lasting presence.
Ranplan appointed a reseller in South Korea in early 2019 to ensure that the company can fully support our ongoing activities in the country.
In summary, in we are very pleased to report our first ever profitable quarter and growth in revenues of over 92% compared with Q1 2018 while maintaining a gross margin a shade below 100%. The PO we received in this quarter for SEK 22.5 million provides a strong foundation for continued expansion of commercial capabilities. We envisage that with 5G gaining momentum across the globe, further development of our product portfolio and go-to-market activities, our stated objective of sales at or in excess of US$ 25 million by the end of 2022 is within reach.
CEO Ranplan Group AB
The complete 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 May 20, 2019 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.
FNCA Sweden AB, +46(0)8-528 00 399 firstname.lastname@example.org, is the Company’s Certified Adviser at Nasdaq First North