Second quarter 2019
First six months 2019
*From Consolidated Financial Statements 3 months to 30 June 2019
**Figures inside parentheses refer to the corresponding figures for the previous fiscal year throughout this Q2 report.
***From Combined Financial Statements
**** From Consolidated Balance Sheet 30 June 2019
Significant events during the second quarter 2019
Words from the CEO
We are proud to report a second consecutive profitable quarter in 2019 with revenues of SEK 29.4 million for the first half of 2019 – a growth of 152% over the same period in 2018. A year after the IPO in late June 2018, the company operates at a considerably higher level which helps us demonstrate the leverage built into our business model.
Ranplan revenues for the second quarter amounted to SEK 16.6 million, with a gross margin of 92.6%. On a comparative quarter-on-quarter basis for the first six months we have grown our revenues by 230% over the same period in 2018, from SEK 5.0 million in Q2 2018 to SEK 16.6 million in Q2 2019.
Revenue increased for the first six months to SEK 29.4 million, representing a growth of 152% over the same period in 2018.
The Company delivered a profit from operations of SEK 0.3 million in Q2 2019 compared with losses from operations of SEK 7.7 million in Q2 2018.
We are especially pleased to report a second consecutive profitable quarter. Profit for the first six months of 2019 amounted to SEK 0.5 million compared with losses from operations of SEK 11.1 million in the same period in 2018. These figures lend credence to the strategic direction the company has decided to pursue.
Cash and cash receivables expected to be converted into cash within the next 12 months amounted to SEK 39.3 million3 by the end of June 2019, slightly above the level of SEK 38.1 million4 at the end of calendar 2018.
The Company maintained a robust gross margin of 92.6% in the quarter just ended. The gross margin was lower than reported in previous quarters due to a sale of 3rd party product. Sales of Ranplan software at 99.4% remains unchanged, reflecting the pure licensing nature of our business model.
Ranplan secured seven new customers in Q2 2019 and won repeat business from several existing customers. Ranplan formed two commercial technology partnerships in the US. We entered into a Preferred System Integrator relationship with Communications Technology Services LLC (CTS), one of the larger System Integrators in the US, and with DPJJ LLC (Wireless Services). Both System Integrators procured licenses from Ranplan to deliver RF planning services to their clients.
The Company entered into a strategic reseller partnership with and received its first purchase order from Massilatech, part of the Metco Group, one of the largest telecommunications groups in the Middle East with bases in Iraq, Kuwait, Oman, Saudi Arabia, UAE. This partnership opens up an important market opportunity as Metco enjoys strong relationships with all the operators in the region.
Conferences and Tradeshows
The Company exhibited at key tradeshows specifically 5G World and Small Cells Forum in London, CommunicAsia 2019 in Singapore, Interop in Tokyo and Mobile World Congress in Shanghai which served to increase brand awareness, generate new opportunities, open-up technology partnerships, as well as provide intelligence on emerging trends. We were honoured to be awarded the Judge’s Special Prize in the category “Best of Show Award” for Ranplan Professional’s 5G NR planning capability at Interop in Tokyo. We were also finalist at the Small Cells Forum in the category Software and Services – Management, Automation and Orchestration, positioning Ranplan as the thought leader in its field of expertise and hence increasing its visibility in the marketplace.
Research and Development
Research and Development at the absolute frontier is at the heart of the Company. We take great pride in our contribution to society at large in this regard. In the second quarter, Ranplan was awarded a grant from the UK’s Geospatial Commission for a joint research project alongside the University of Warwick on project COCKPIT 5G, a government funded 5G and AI research project. The aim of this project is to investigate where black-spots are in the UK to support and optimise the roll-out of 5G to improve both urban and rural coverage. Findings will be used to enhance connectivity for businesses, AI (Artificial Intelligence), driverless cars and manufacturing.
We are inspired by our financial and operational achievements in the first half of the year. As new business opportunities emerge, we will – often in close dialogue with existing and prospective customers – enhance our organisational capabilities.
True to our values, I would personally like to thank our team of dedicated employees with whom our success is intrinsically linked. Our past performance, our recent advance and our future success hinge critically on the people we employ, how well they interact, and what level of motivation they display.
It is against this backdrop – as well as a successful listing of the company’s shares on Nasdaq First North – that I look forward to handing over the CEO baton.
CEO Ranplan Group AB
The complete report is attached to this press release and is available at www.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 14 Aug, 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 email@example.com, is the Company’s Certified Adviser at Nasdaq First North