InCoax Networks AB: The board of InCoax provides preliminary financial information for the fourth quarter and fiscal year 2024

InCoax Networks AB (publ) ("InCoax" or "the Company") announces preliminary financial information for the fourth quarter, which ended on December 31, 2024, and for the fiscal year 2024. The preliminary figures have not been audited or reviewed by the Company's auditor.

Preliminary financial information

October - December 2024

• Net sales amounted to SEK 7,417,595 (22,650,678).
• Gross profit amounted to SEK 5,186,557 (9,190,959).
• Operating result amounted to SEK -7,744,628 (-5,484,604).
• The quarter’s cash flow, including financing activities, amounted to SEK -31,359,888 (5,199,465).

January – December 2024

• Net sales amounted to SEK 74,497,775 (59,619,447).
• Gross profit amounted to SEK 42,179,123 (31,021,929).
• Operating result amounted to SEK -19,378,406 (-16,729,885).
• The period’s cash flow, including financing activities, amounted to SEK -12,758,134
  (-21,306,145).

At the end of the period, the Company's cash position amounted to SEK 2,231,929 (14,990,063).
The cash balance is stated excluding the available and undrawn credit line of SEK 10 million from Saugatuck Invest AB.

CEO Jörgen Ekengren comments:

We have previously indicated that sales may fluctuate between quarters. Q4 2024 was one such quarter, where the significant decline in net revenue is attributable to postponed deliveries. These are not lost contracts, and we expect the deliveries to be completed during 2025. The increased operating loss is a direct effect of this, while we also see an increasing gross margin due to a higher share of recurring service and support revenues in the product mix. Cash flow was impacted by the delayed deliveries, which postponed our ability to invoice, as well as by substantial growth investments related to our cooperation with Nokia.

For the full year, net sales increased by 25% compared to the previous year. This is lower than our long-term growth targets presented in June 2024, but it can largely be explained by timing-related effects concerning sales to Google Fiber and a slightly delayed sales launch of our system as part of Nokia’s “Gigabit Connect” offering to the operator market. With a strong order intake and expected sales in the first quarter of 2025, our long-term growth target remains unchanged. The coming quarters will continue to be characterized by fluctuating sales, but over the next 3- to 5-year period, the board and the company aim to achieve:

• At least 50% annual organic revenue growth.
• Positive operating cash flow and an EBIT margin of at least 10% from 2025.

We confidently look forward to continuing our growth with our customers and now see a positive shift in operators’ willingness to invest, driven by lower interest rates and an accrued need for continued investment for high-speed broadband investments among operators.

This information is such information as InCoax Networks AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 08.10 CET on February 27, 2025.

For additional information, please contact:
Jörgen Ekengren, CEO, InCoax Networks AB
[email protected]
+46 73 899 55 52

About InCoax Networks AB
InCoax Networks AB (publ) re-purposes existing property coaxial networks in fiber and fixed wireless access (FWA) extension deployments for Communication Service Providers (CSP) globally. The technology is a high performance, future proof, reliable and cost-effective complement, that reduces installation time and improves take-up rate, to boost digital inclusion and internet access for all.

To keep updated on corporate information, visit incoax.com. Vator Securities AB, tel. +46 8-5800 6599, [email protected], is acting as the company’s Certified Adviser.