InCoax Networks (INCOAX) Q2 2024 earnings summary

Executive summary

• Net sales more than doubled year-over-year in both Q2 and H1 2024, driven by strong sales to a US-based FiberLAN operator.

• Strategic agreement with Nokia finalized, integrating InCoax's solution into Nokia's Gigabit Connect portfolio for global distribution.

• Collaboration with Google Fiber and new customers in Finland and the USA progressing, with expectations for recurring orders in H2 2024.

• Company targets at least 50% annual organic revenue growth and positive EBIT margin of at least 10% from 2025.

Financial highlights

• Q2 2024 net sales: SEK 19.4m (Q2 2023: SEK 9.3m); H1 2024 net sales: SEK 50.2m (H1 2023: SEK 22.2m).

• Q2 2024 operating loss (EBIT): SEK -6.95m (Q2 2023: SEK -6.32m); H1 2024 EBIT: SEK -2.60m (H1 2023: SEK -9.40m).

• Q2 2024 earnings per share: SEK -0.06 (Q2 2023: SEK -0.09); H1 2024 EPS: SEK -0.02 (H1 2023: SEK -0.13).

• Q2 2024 cash flow incl. financing: SEK -12.0m (Q2 2023: SEK -11.3m); H1 2024: SEK 21.4m (H1 2023: SEK -9.2m).

• Equity ratio at period end: 81.9% (Q2 2023: 78.9%).

Outlook and guidance

• Expectation of continued fluctuating sales in coming quarters, with more consistent growth as new customers move to rollout phase.

• Collaboration with Nokia anticipated to impact sales in late 2024, with significant growth from 2025.

• Board and management target at least 50% annual organic revenue growth and positive EBIT margin of at least 10% from 2025.