Voltabox is adjusting its forecast for fiscal year 2019 due to revenue delays
- The initial major order of an American telecommunication customer is being shifted to 2020
- Temporary production stoppage due to conversion to the latest technology at an important cell supplier
- A cost reduction program and a stronger focus on high-margin areas are being implemented
Delbrück, Germany, August 12, 2019 - Voltabox [ISIN DE000A2E4LE9] is reducing its revenue and earnings forecast for the current fiscal year. The essential reasons are the partial postponement of a major order for the American subsidiary Voltabox of Texas, Inc., into 2020 and the conversion to the latest technology at an important cell supplier, which will lead to a temporary production stoppage in subareas at Voltabox.
For fiscal year 2019, Voltabox now anticipates Group revenue of EUR 70 million to EUR 80 million instead of the originally indicated EUR 105 million to EUR 115 million. For the EBIT margin the company is forecasting a range of -8 to -9 %. Previously, Voltabox had expected a positive EBIT margin of 8 to 9 %.
The initial USD 22 million order for Voltabox of Texas, Inc., from a customer in the telecommunication industry involves the redesign and equipment of 5G mobile transmission towers. Until now, "back-up batteries" have been installed on a lead-acid basis in all 3G/LTE transmission systems in order to keep the mobile network ready for operation even in case of a network power failure. In the future, the new 5G transmission systems shall be equipped with lithium-ion batteries. The use of this technology is a new mass market for Voltabox. In urban areas, transmission towers are frequently located only a few hundred meters from each other so that thousands of such towers are set up for each large city. Going forward, Voltabox technology should also be used in Germany, where studies foresee a market of 750,000 to 1,200,000 of such systems.
Since the U.S. telecommunication customer unexpectedly changed the product specifications shortly before the start of series production, deliveries will begin only toward the end of this year. In the first half of the year, Voltabox of Texas produced an EBIT of EUR -3.5 million. The loss in the second half of the year should be smaller.
Aside from the U.S. business, the conversion of an important supplier to the latest cell generation requires a correction to the forecast. Contrary to original expectations, this conversion is resulting in an interruption of the supply of materials at Voltabox in the second half of 2019 and thereby to a production stoppage in subareas lasting several months. The temporary supply stoppage can be replaced only partially by existing modules. Revenue of at least EUR 12 million is being shifted to 2020. The new cell generation is characterized by a significantly higher energy density and better performance. It enables Voltabox to produce low-cost system solutions, reinforcing its leadership in innovation.
The Management Board has introduced a series of measures to improve cost structures and to ensure a sustainable return to the profit zone in 2020. In addition, Voltabox will focus in the future increasingly on projects and system solutions that promise a better ratio of development expenses to potential revenue. Short-term measures primarily target lower personnel costs and essentially encompass the elimination of temporary work and overtime as well as the reduction of accrued vacation at German locations. In the USA, the necessary measures to improve the quality of earnings are similarly being implemented with close support from Germany. Beginning in September, Thomas Marc Becker will facilitate this process as the CFO of the Texan subsidiary; Mr. Becker was previously Head of Finance/IT at Continental Automotive Systems in Texas.
According to preliminary figures, Voltabox achieved revenue of EUR 32.1 million in the first half of 2019, which represents an increase of 77 %, while EBIT amounted to EUR -3.6 million after positive EUR 0.1 million in the prior year. Voltabox will publish its report on the first half of the year on August 21, 2019.
About Voltabox AG
Voltabox AG (ISIN DE000A2E4LE9), which is listed on the regulated market (Prime Standard) of the Frankfurt Stock Exchange, is a rapidly growing system provider for e-mobility in industrial applications. Its core business lies in intrinsically safe, highly developed high-performance lithium-ion batteries that are modular and in serial production. The battery systems are primarily used in buses for public transportation, forklifts, automated guided vehicles and mining vehicles. The company also develops and produces high-quality lithium-ion batteries for select mass-market applications, such as high-performance motorcycles and pedelecs.
Voltabox has production sites at its headquarters in Delbrück, Germany, in Austin (Texas, USA), and in Kunshan, China, as well as development sites in Aachen and Korntal-Münchingen, Germany.
Additional information about Voltabox can be found at www.voltabox.ag/en.
33129 Delbrück, Germany
Tel.: +49 (0) 52 50 - 99 30-685
Fax: +49 (0) 52 50 - 99 30-901
12.08.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de