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NORBIT - Results for the third quarter of 2021
Trondheim, 11 November 2021: NORBIT reports all-time high revenues for the third quarter of 2021 of NOK 200.3 million, corresponding to a growth of 34 per cent compared to the same period last year. Adjusted for transaction costs related to the acquisition of iData, EBITDA was NOK 37.0 million, representing a margin of 18 per cent. For the first nine months of 2021, the company had revenues of NOK 538.9 million, up from NOK 456.7 million last year, and an EBITDA of NOK 101.0 million.
“The growth trajectory continued in the third quarter, where all segments contributed to the progress and both Oceans and Connectivity reported improved profitability from the comparable period last year. I’m pleased to see that we have been able to regain and accelerate momentum this year, benefitting from the strategies and priorities set,” says Per Jørgen Weisethaunet, CEO of NORBIT.
NORBIT renames business segment ITS to Connectivity, where ITS as a sub-segment will continue to offer tailormade solutions within Dedicated Short-Range Communications (DSRC), in addition to a sub-segment named Smart Data within Internet of Things (IoT), consisting of recently acquired iData, NORBIT AblePay and NORBIT ́s initiative within tailored IoT in selected niche applications. Connectivity delivered revenues of NOK 46.0 million the third quarter, up from NOK 21.8 million in third quarter 2020, with an EBITDA margin of 27 per cent.
“NORBIT has a long track-record within design, manufacturing, and supply of high-volume wireless low power devices. We aim to utilize this experience in selected niche IoT applications. Connectivity provides a better description of what we do in this business unit – namely enabling our clients to further digitize their operations by; data collection and analyzes with tailored sensors and connectivity devices, cloud computing and data fusion directly integrated into the client’s own business software or as stand-alone services,” says Weisethaunet.
Segment Oceans reported revenues of NOK 91.8 million and an EBITDA of NOK 31.2 million in the quarter, representing a margin of 34 per cent. The growth was mainly driven by continued strong sale of sonars, where Asia and Europe showed solid growth year over year. Segment Product Innovation & Realization (PIR) delivered revenues of NOK 68.8 million and an EBITDA margin of close to zero in the period, while revenues for the first nine months amounted to NOK 214.5 million and an EBITDA of NOK 13.9 million.
The last three months of the year have historically been the seasonally strongest quarter in Oceans, and activity has remained high both in the sonar and environmental monitoring business. For Connectivity, NORBIT reiterates its guidance of revenue recognition in excess of NOK 100 million for the second half the year, while revenues in PIR are expected to slightly increase from the third quarter driven by additional sale of R&D services and products.
Looking ahead of the fourth quarter, NORBIT has set out a target to deliver revenues of approximately NOK 1.0 billion next year supported by growth in all three business segments. With the ongoing disruption in the supply market for raw material components, including increased lead time, the supply chain risk cannot be fully mitigated. However, NORBIT is actively working to increase inventory levels and strengthening the organisation across all business segments to prepare for the anticipated activity increase and to safeguard delivery schedules to the best extent possible.
Longer term, NORBIT’s ambition is to deliver organic revenues in excess of NOK 1.5 billion and an EBITDA margin above 25 per cent in 2024.
Please find enclosed the interim report for the third quarter and the presentation material.
CEO Per Jørgen Weisethaunet and CFO Per Kristian Reppe will present the results today at 10:00 CET through a webinar hosted by SpareBank 1 Markets.
Please use the following link to register for the webinar: https://attendee.gotowebinar.com/register/4857091934676346894.
For more information, please contact:
Per Jørgen Weisethaunet, CEO, +47 959 62 915
Per Kristian Reppe, CFO, +47 900 33 203
About NORBIT
NORBIT is a global provider of tailored technology to selected niches, solving challenges through innovative solutions, in line with its mission to Explore More. The company is structured in three business segments to address its key markets; Oceans, Connectivity and Product Innovation & Realization (PIR). The Oceans segment delivers tailored technology solutions to global maritime markets. The Connectivity segment (previous ITS) encompasses NORBIT’s technology within low power wireless solutions both related to electronic vehicle identification for tolling and tachograph enforcement, together with a new vertical comprising of the recently acquired Hungarian software solutions provider iData, as well as NORBIT’s initiatives within tailored IoT in selected niche applications. The PIR segment offers R&D services, proprietary products and contract manufacturing to key customers.
NORBIT is headquartered in Trondheim with manufacturing in Norway, has around 400 employees and a worldwide sales and distribution platform.
For more information: www.norbit.com
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
This stock exchange announcement was published by Elise Heidenreich, Investor Relations at NORBIT ASA, on 11 November 2021 at 07:00 CEST.
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