RTX Q1 challenged by COVID-19

Announcement                      
To Nasdaq Copenhagen A/S and the press

Nørresundby, Denmark, 28 January 2021
Announcement no. 05/2021

Interim report for Q1 2020/21
(the period 01.10.2020 - 31.12.2020)

“As expected and communicated in the outlook for the year, our first quarter of 2020/21 has been challenged on the demand side. Our customers have placed low orders due to COVID-19, and this has caused revenues to decline by 52% compared to the record Q1 of last year. COVID-19 impacts the ability of customers in the Enterprise segment to access the sites of their customers for installation of communication systems, and it impacts part of the ProAudio segment due to the lockdown of live events. Therefore, customer inventory replenishment, and therefore their orders to RTX, has been at a low level in Q1. However, our customers continue their product development activities with us, and we continue to see our business model as fundamentally strong. During Q2 and Q3 of this financial year we will launch the first products to the two newest major framework agreements announced at the end of 2018/19 – one framework agreement in the Enterprise segment and one in the ProAudio segment.”

Peter Røpke, CEO

HIGHLIGHTS Q1 2020/21 FOR THE RTX GROUP

• Net revenue decreased by 52.2% to DKK 61.3 million in Q1 2020/21 (Q1 2019/20: DKK 128.3 million). A significant decrease in Q1 was expected and communicated in the outlook for 2020/21 as part of the 2019/20 Annual Report. The decrease is driven by COVID-19 affecting customer orders in the Enterprise and ProAudio segments and by FX effects due to the weakening of the US dollar compared to last year.
   
  • Enterprise segment: Revenue decreased 60.4% to DKK 35.5 million. The decrease is seen in most parts (customers, product groups) of the Enterprise segment. Customer orders in the quarter have been low as customers’ replenish­ment of their inventories have been very cautious due to COVID-19 affecting customers’ access to end customer sites for installation of communication systems.
  • ProAudio segment: Revenue decreased by 42.8% to DKK 19.1 million. Recurring revenue from product sales and royalties in the segment is on the same level as last year with underlying growth from the strategy to focus on producti­zation, however, the growth is weakened by COVID-19 impacting some customers in the segment. Therefore, recurring revenue development cannot compensate for declining revenue from engineering services compared to last year.
  • Healthcare segment: Revenue increased by 22.6% to DKK 6.8 million. Revenue growth is driven by the conversion into deliveries of a full ODM product instead of purely modules for part of the deliveries.          

  FX corrected revenue development amounted to a decrease of 48.3% as revenue compared to last year was negatively affected by the weakening of the US dollar.