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CLAV

Clavister Holding

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Clavister Q2 preview: Focus on the telecom segment and Japan

Clavister will present their report for the second quarter of 2017 on Tuesday the 15th of august. We estimate a rise in net sales of 21% (driven by the acquisition of PhenixID – revenues from PhenixID were not included in the second quarter 2016). The reported numbers are of minor importance – we will focus on the development within the telecom segment (or Service Provider segment*) and in Japan (where the relationship with Canon IT Solutions is important) – Japan is a focus market that holds significant potential going forward. Comments about the organizational changes and cost optimization activities mentioned in the latest Operational Update are also of interest.

We expect to see sales of SEK 21m, the organizational changes and cost optimization activities mentioned in the latest Operational Update are expected to affect sales within the enterprise segment negatively during the quarter and throughout 2017 (according to us).

Profitability wise we estimate an EBIT loss of SEK -20m. We expect to see an 81 percent gross margin and that other OPEX amounts to SEK 39m. As stated in our initial report, cash flow from current operations are not enough to support planned activities in the near term, and Clavister will need to secure additional funding during 2017 (the company has indicated possibilities not only related to equity but also other working-capital financing). Clavister’s cash position amounted to SEK ~60m at the end of the first quarter 2017.

Clavister will present their report for the second quarter of 2017 on Tuesday the 15th of august – a teleconference will be held 09:00.

 

*) In June, Clavister announced that the term ”Service Providers” will be used from now on by the company to better denote the wider segment which Clavister is addressing, and where the mobile operator market is included. 

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