u-blox reports its first quarter 2024 trading update

• Revenue of CHF 56.0 million
• Similar revenue decline in all regions and markets; decline stronger in the connectivity business
• EBIT of CHF -20.4 million, EBIT (adjusted) of CHF -18.6 million
• Q1 2024 expected to be the trough

Thalwil, Switzerland – 24 April 2024 – u-blox (SIX: UBXN), a global provider of leading positioning and wireless communication technologies and services, announces its trading update for the first quarter of 2024.

u-blox generated revenue of CHF 56.0 million in the first quarter of 2024, compared to
CHF 165.8 million in the same period in 2023. Revenue in constant exchange rates declined by -63.9% and the effect of foreign exchange rates was -2.3%. The weak performance is mainly due to high inventory levels at customers, which was accentuated by contractual deliveries in the fourth quarter of 2023. Revenue declined similarly in all regions and markets, while more pronounced in the connectivity business.

EBIT, on an IFRS basis, declined to CHF -20.4 million from CHF 28.1 million in the first quarter of 2023. The respective EBIT margin declined to -36.4% from 17.0% one year earlier. EBIT (adjusted) declined to CHF -18.6 million in the first quarter of 2024, compared to CHF 29.8 million one year earlier. The respective EBIT margin (adjusted) declined to -33.2% from 18.0% one year earlier. The decline reflects the lower operational leverage following the decline in revenue.

Stephan Zizala, CEO of u-blox, commented, “The results achieved in the first quarter of 2024 were weak as expected. Our view for 2024 is unchanged: based on our experience and input from customers, we expect a sequential recovery over the next quarters.”


Outlook
u-blox’s expectations for 2024 are unchanged. u-blox expects results to have reached the trough in the first quarter 2024 and expects an improvement over the course of 2024, as customers digest the overstock built-up in 2023. At this stage, order levels are still low and are expected to increase in the next quarters.

u-blox remains positive on its long-term development prospects. Demand and requirements for semiconductor solutions for automated and autonomous driving, asset tracking, healthcare offerings, and industrial automation will grow significantly. As confirmed by our design wins, u-blox is well on track to profitably grow with its positioning and wireless connectivity semiconductor solutions and services business.
 

Guidance for Q2 2024
u-blox expects revenue of CHF 55-65 million and EBIT margin (adjusted) of -35% to -25% in
Q2 2024.
 

Conference call
u-blox will hold a brief Q session to discuss its first quarter 2024 trading update today, April 24, 2024, at 14:00 CET. For registering to the conference call, please click here.

u-blox (SIX:UBXN) provides semiconductor chips, modules, and IoT services that reliably locate and connect every thing. Our cutting-edge solutions drive innovation for the car of the future and the Internet of Things. Headquartered in Thalwil (Zurich), Switzerland, we have a global presence of 1,400 experts who enable our customers to build solutions for a precise, smart, and sustainable future. 

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Disclaimer
This release contains certain forward looking statements. Such forward looking statements reflect the current views of management and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the u blox Group to differ materially from those expressed or implied. These include risks related to the success of and demand for the Group’s products, the potential for the Group’s products to become obsolete, the Group’s ability to defend its intellectual property, the Group’s ability to develop and commercialize new products in a timely manner, the dynamic and competitive environment in which the Group operates, the regulatory environment, changes in currency exchange rates, the Group’s ability to generate revenues and profitability, and the Group’s ability to realize its expansion projects in a timely manner. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this report. u blox is providing the information in this release as of this date and does not undertake any obligation to update any forward looking statements contained in it as a result of new information, future events or otherwise.