Order intake increases by 170% during the third quarter

Third quarter 1 July – 30 September 2024

• Net sales amounted to SEK 35.880 M (53.345)
• EBITDA SEK -2.839 M (12.845)
• Operating profit SEK -4.777 M (11.029)
• Order intake SEK 64.894 M (24.001)
• Cash flow from current operations SEK 3.723 M (12.177)
• Earnings per share after dilution SEK -0.09 (0.20)
• Equity per share SEK 2.24 (1.98)

The period 1 January – 30 September 2024

• Net sales amounted to SEK 142.928 M (159.852)
• EBITDA SEK 10.310 M (27.749)
• Operating profit SEK 4.541 M (23.310)
• Order intake SEK 150.953 M (93.446)
• Cash flow from current operations SEK -24.066 M (9.237)
• Earnings per share after dilution SEK 0.03 (0.44)
• Equity per share SEK 2.24 (1.98)

CEO’s statement

The Group continues to expand into more countries with orders from new customers in Slovenia and Azerbaijan. These new customer orders will be delivered and invoiced during the fourth quarter, including equipment for public safety radio coverage in several government buildings in Azerbaijan, as well as radio coverage in tunnels for the GSM-Rail system in Slovenia.

Order intake in the third quarter improved significantly, showing a 170% increase compared to the previous year. We have observed increased market activity compared to earlier quarters, driven by lower interest rates and economic conditions.
The quarter's net sales amounted to SEK 36 million, affected by the holiday season in Europe, where all our factories were closed for half of July, resulting in no deliveries during this period. Our production during the third quarter continues to demonstrate good cost control in the production flow, with the Group reporting a gross profit margin of 41%. The negative earnings are influenced by low turnover and continued costs related to further expansion of the business.

During the quarter, we made the first delivery to Italy for GSM-Rail coverage in train tunnels. Italy is one of the five largest sub-markets in Europe where DAS systems are used for tunnel and indoor coverage. Therefore, this quick delivery was crucial in establishing a reference system in Italy, which can generate further local business opportunities.
Our strategic efforts for further expansion are ongoing, with the establishment of a subsidiary in the UK during the quarter, providing local technical sales support to handle increasing business volumes. Additionally, we hired another salesperson based in Brisbane to strengthen our local presence, together with the existing sales support in Melbourne, to increase order intake in the Australian market.

The launch of the Nimbus platform for 5G indoor coverage is progressing well and has been very well received by the market. Field tests have now begun with selected customers, and we can confirm that our product is superior in delivering the highest data speeds and offers a complete solution that supports all operators' frequencies in the 4G and 5G bands through the same Nimbus unit.

Our contract manufacturers continue to deliver standard products with lead times of 8–16 weeks. Our newest contract manufacturer has continued to optimize the production flow, resulting in improvements during the quarter.

Cash flow during the quarter was affected by investments in type approval of U.S. products, optimization of the production flow at the new factory, and costs related to the implementation of a new business system. Cash flow is also impacted by outstanding unpaid receivables. Additionally, SEK 7.2 million remains outstanding pending the final tests of installations at SBB in Switzerland, which are scheduled for approval in the fourth quarter.

Focus on security within IT and telecom systems remains strong, with all EU member states implementing local laws based on the NIS-2 directive, which must be enacted by the end of the year. This means that the boards and management of organizations providing IT and telecom systems are responsible for cybersecurity. Furthermore, it ensures that future systems will be more secure. Insecure and vulnerable systems, such as public Wi-Fi networks, will be replaced by safer alternatives. Maven Wireless systems maintain the same high level of security as provided by operators' networks, making them suitable for secure and robust installations. Additionally, we are seeing an increase in private 4G and 5G networks in several regions, which in many cases are replacing Wi-Fi solutions for hospitals and schools needing to modernize their systems for the secure handling of data over wireless networks. Our Nimbus platform supports the 4G and 5G standards and can distribute signals from all operators, as well as private 5G networks, through the same system, making it cost-effective and unique in the market.

In summary, I am very pleased that the Group continues its global expansion into new countries, while following our expansion plan in existing markets and maintaining strong gross profit margins. It is also satisfying to note a significantly higher order intake during the quarter. With the Nimbus platform, we continue to contribute to the digitalization of safe and secure societies, both in 5G and other critical communications.

Fredrik Ekström – group CEO
Kista, October 18, 2024

Significant events during the third quarter

Maven Wireless Wins Order for New Train Repeater Worth SEK 17m

Maven Wireless' Swiss partner Strapag, specializing in the integration of repeater solutions on trains, has secured another major deal with the Maven train repeater TOR towards a Swiss train manufacturer. This time serving a Norwegian Train Operator requiring ultra high-speed coverage on trains, also known as Gigabit train coverage. Strapag has placed an order for train repeaters worth approximately SEK 17m.
The Norwegian end customer has ordered 17 train sets of this type that require high-speed coverage with an option of an additional 66. The products will be delivered and invoiced during 2025.

Significant events after the period

Maven Wireless granted a fifth patent in India

Including the new granted patent, Maven Wireless possesses 74 patents worldwide and has additionally 5 patent applications pending. The new patent in India covers a method performed by a digital DAS to ensure that all mobiles can synchronize and communicate stably over the DAS network regardless of whether 2G, 3G, 4G or 5G technology is used.
This patent supports and protects Maven Wireless’ business especially in India and Asia.