Artificial Intelligence
SOITEC REPORTS FULL YEAR RESULTS OF FISCAL YEAR 2021
SOITEC REPORTS FULL YEAR RESULTS OF FISCAL YEAR 2021
- Revenue of €584m, up 1% at constant exchange rates and perimeter1 (down 2% on a reported basis)
- Electronics EBITDA2 margin3 at 30.7% of revenue, in line with guidance
- Strong Electronics net operating cash flow at €174m
- FY’22 revenue now expected around $950m (or around €800m based on €/$ exchange rate of 1.2), up around 40% at constant exchange rates and perimeter1
- FY’22 Electronics EBITDA2 margin3 expected around 32%
- FY’22 CAPEX planned at around 240m€ to support ongoing industrial capacity increase
- Soitec’s strategic vision for the next 5 years to be unveiled during 2021 Capital Markets Day (see separate press release to be issued on June 10th)
Bernin (Grenoble), France, June 9th, 2021 – Soitec (Euronext Paris), a world leader in designing and manufacturing innovative semiconductor materials, today announced its full-year results for fiscal year 2021 (ended on March 31st, 2021). The financial statements4 were approved by the Board of Directors during its meeting today.
Paul Boudre, Soitec’s CEO, commented: “As expected, our fiscal year 2021 has been a transition year after close to 30% organic growth in fiscal year 2020. Despite the Covid situation, we are fully in line with our guidance, achieving a small organic growth in revenue and maintaining our Ebitda margin above 30%. In the meantime, we generated strong operating cash flows, which, together with the proceeds from the new convertible bonds issued last October, strengthens our cash position and will contribute to the financing of our growth even beyond our fiscal year 2022.
Our outlook for fiscal year 2022 looks bright. Supported by the accelerated deployment of 5G cellular communication, reinforced demand from automotive sector and increasing reliance on artificial intelligence on the Edge and Cloud computing, we are upgrading our guidance and now expect organic growth to reach around 40%. Such performance will allow us to resume the strong growth trajectory that Soitec initiated five years ago after the Group refocused on Electronics. In addition, we expect to improve our Ebitda margin, in line with our ambition to deliver profitable growth,” added Paul Boudre.
Stable revenue and sustained level of EBITDA2 margin3
Consolidated income statement (part 1)
| (Euros millions) | FY’21 | FY’20 | % change |
| Revenue | 583.8 | 597.5 | -2% |
| Gross profit | 183.5 | 195.4 | -6% |
| As a % of revenue | 31.4% | 32.7% | |
| Research and development expenses | (44.4) | (32.5) | +37% |
| Selling, general and administrative expenses | (49.1) | (45.2) | +9% |
| Current operating income | 90.0 | 117.7 | -24% |
| As a % of revenue | 15.4% | 19.7% | |
| Electronics EBITDA2 (continuing operations) | 179.0 | 185.4 | -3% |
| As a % of revenue | 30.7% | 31.0% |
Consolidated revenue reached 583.8 million Euros in FY’21, down 2.3% compared with FY’20. This is the result of a 0.9% growth at constant exchange rates and perimeter1 and a negative currency impact of -3.2% (the scope effect related to the acquisition of Soitec Belgium in May 2019 being immaterial). Total wafer sales were equally split between 150/200-mm and 300-mm.
- 150/200-mm wafer sales reached 277.4 million Euros, up 4% at constant exchange rates and 1% on a reported basis. This is a combination of further incremental growth achieved in 200-mm RF-SOI wafer sales dedicated to radiofrequency applications for smartphones, lower sales of Power-SOI as a result of the difficulties met by the automotive industry and a strong increase in sales of 150-mm POI (Piezoelectric-on-Insulator) wafers for RF filters, which was enabled by Soitec’s increased industrial capacity.
- 300-mm wafer sales amounted to 276.7 million Euros, representing a decrease of 3% at constant exchange rates and 6% on a reported basis. 300-mm RF-SOI wafer sales were slightly down but remained at a high level, still supported by the 4G market and benefiting from the growing 5G market. Sales of FD-SOI wafers came lower than last year but recorded a firm rebound in the second part of the year reflecting a strengthened FD-SOI based offering for applications related to Edge-Computing and Automotive. Increase in other 300-mm products sales was driven by higher sales of Imager-SOI dedicated to 3D applications for smartphones, while sales of Photonics-SOI for data centers came lower.
- Total Royalties and other revenue increased from 28.3 million Euros in FY’20 to 29.7 million Euros in FY’21, up 6% at constant exchange rates and perimeter1. This increase is essentially reflecting a stronger contribution from Dolphin Design.
Gross profit reached 183.5 million Euros in FY’21, down from 195.4 million Euros in FY’20, reflecting a decrease in gross margin from 32.7% of revenue to 31.4% of revenue. This mainly comes as a result of higher depreciation costs, a lower loading of Bernin I and Bernin II industrial facilities and an unfavorable currency impact. On the other hand, gross margin benefitted from lower bulk material prices, as a result of renegotiated long-term agreements with suppliers.
Current operating income declined from 117.7 million Euros, i.e. 19.7% of revenue, in FY’20 to 90.0 million Euros or 15.4% of revenue in FY’21. In addition to lower gross profit, this decline is a direct consequence of the increasing R&D efforts and new hirings made to support future expansion:
- Net R&D expenses increased from 32.5 million Euros in FY’20 to 44.4 million Euros in FY’21. This increase essentially reflects higher gross R&D Expenses, driven in particular by continued investment effort and higher depreciation, as well as lower prototype sales.
- Selling, general and administrative (SG&A) expenses went up from 45.2 million Euros in FY’20 to 49.1 million Euros in FY’21, essentially reflecting an increase in expenses related to employee compensation schemes (higher number of staff and share-based payments related to employee shareholding plans due to an increase in the share price). As a percentage of revenue, SG&A expenses went slightly up from 7.6% in FY’20 to 8.4% in FY’21.
The EBITDA2 from continuing operations (Electronics) amounted to 179.0 million Euros, down from 185.4 million Euros in FY’20. Despite unfavorable currency impact and continuous efforts in R&D and SG&A, the EBITDA2 margin was maintained above 30%, reaching 30.7% of revenue in FY’21, compared with 31.0% of revenue in FY’20.
Depreciation and amortization expenses went up from 45.5 million Euros in FY’20 to 59.9 million in FY’21, as a result of the high level of industrial capacity and R&D investments carried out by the Group in previous years.
Consolidated income statement (part 2)
| (Euros millions) | FY’21 | FY’20 | % change |
| Current operating income | 90.0 | 117.7 | -24% |
| Other operating income | 0.4 | 1.8 | |
| Operating income | 90.4 | 119.5 | -24% |
| Net financial result | (14.8) | (4.1) | |
| Income tax | (1.5) | (4.9) | |
| Net profit from continuing operations | 74.1 | 110.5 | -33% |
| Net profit / (loss) from discontinued operations | (1.4) | (0.9) | |
| Net profit | 72.7 | 109.7 | -34% |
| Basic earnings per share (in €) | 2.19 | 3.40 | -36% |
| Diluted earnings per share (in €) | 2.16 | 3.32 | -35% |
|
Number of shares |
33 176 570 | 32 245 503 | |
| Number of diluted shares | 35 014 307 | 33 984 168 |
The Group recorded 0.4 million Euros in other operating income in FY’21 whereas it recorded a 1.8 million Euros gain on the disposal of an industrial site in FY’20. The operating income reached 90.4 million Euros in FY’21.
The net financial result was a loss of 14.8 million Euros in FY’21 compared to a loss of 4.1 million Euros in FY’20. On the one hand, the Group recorded an increase in financial expenses mostly related to the new 5-year convertible bond issued in October 2020 (OCEANEs 2025). On the other hand, the Group recorded a net foreign exchange loss of 3.6 million Euros in FY’21 compared to a foreign exchange gain of 0.6 million Euros recorded in FY’20.
Income tax amounted to (1.5) million Euros in FY’21 as the Group continues to benefit from tax loss carryforwards. It compares to (4.9) million Euros in FY’20.
The Group’s consolidated net profit amounted to 72.7 million Euros in FY’21, down 34% compared with a net profit of 109.7 million Euros recorded in FY’20.
Sharp increase in operating cash flows
Consolidated cash-flows
| (Euros millions) | FY’21 | FY’20 |
| Continuing operations | ||
| EBITDA2 | 179.0 | 185.4 |
| Change in working capital | 9.3 | (59.1) |
| Tax paid | (14.0) | (25.6) |
| Net cash generated by operating activities | 174.3 | 100.7 |
| Net cash used in investing activities | (132.6) | (108.1) |
| Net proceeds from OCEANEs 2025 issued | 321.1 | – |
| Proceeds from shareholders and other items | (0.9) | 22.7 |
| Drawing on credit lines, new loans and debt repayment (including finance leases) | 94.2 | (9.0) |
| Financial expenses | (2.1) | (2.0) |
| Net cash generated by financing activities | 412.3 | 11.7 |
| Impact of exchange rate fluctuations | (0.3) | (4.6) |
| Net change in cash | 453.7 | (0.3) |
| Discontinued operations | (0.4) | 16.0 |
| Group net change in cash | 453.4 | 15.7 |
| Adjusted net cash generated by / (used in) investing activities (1) | (136.7) | (132.8) |
| Adjusted free cash-flows | 37.6 | (32.1) |
| Adjusted net cash generated by / (used in) financing activities (1) | 416.5 | 36.4 |
(1) Adjusted net cash used by investing activities includes 4.1 million Euros in FY’21 (24.7 million Euros in FY’20) of investments which have been financed through leasing (lease-back) and adjusted net cash generated by financing activities includes the same 4.1 million Euros (24.7 million Euros in FY’20).
The working capital requirements from continuing operations improved by 9.3 million Euros during FY’21 thanks to a strong monitoring. This good performance is essentially a reflection of an 18.3 million Euros increase in accounts payables and other liabilities, partially offset by a 9.4 million Euros increase in inventories.
This 9.3 million Euros cash inflow from working capital compares to a cash outflow of 59.1 million Euros recorded in FY’20. In addition, tax paid was down to 14.0 million Euros from 25.6 million Euros in FY’20. As a result, net operating cash generated by continuing operations increased sharply, reaching 174.3 million Euros in FY’21 compared with 100.7 million Euros generated in FY’20.
In FY’21, the adjusted cash out related to investing activities of continuing operations amounted to 136.7 million Euros compared to 132.8 million Euros in FY’20 which was including 25.5 million Euros related to the acquisition of Soitec Belgium. FY’21 capital expenditure includes 24.2 million Euros of investments in intangible assets (mostly capitalized R&D and software) and 113.5 million Euros of investments in tangible assets essentially reflecting capacity investments carried out both in Bernin (mostly for 150-mm POI wafers production at Bernin III) and in Singapore, as well as IT investments.
Thanks to the strong operating cash flows and despite significant cash out from investments, adjusted free cash flows are positive at 37.6 million Euros as compared with negative free cash flows of 32.1 million Euros in FY’20.
Adjusted net cash generated by financing activities of continuing operations amounted to 416.5 million Euros. Financing included 321.1 million Euros of net proceeds from the issue of OCEANEs 2025 convertible bonds, 94.6 million Euros of drawdowns on the 200 million Euros long-term loan facility granted by Banque des Territoires (Caisse des Dépôts Group) as part of Nano 2022 plan to support the financing of both R&D programs and investments in first industrial deployment infrastructures in France as well as 44 million Euros of bank loans in Singapore to finance tools.
In total, net cash generated by continuing operations reached 453.7 million Euros.
Net cash used by discontinued operations stood at 0.4 million Euros.
Overall, Soitec’s cash position has increased by 453.4 million Euros in FY’21 to reach 644.4 million Euros on March 31st, 2021.
Further strengthened financial position
Thanks to the strong operating cash flow generated in FY’21, Soitec has further strengthened its balance sheet.
Shareholders’ equity increased by 123.8 million Euros in FY’21 to 675.5 million Euros, mainly thanks to the net profit generated during the period and the equity part of the OCEANEs 2025 convertible bonds issue.
Financial debt increased from 244.7 million Euros on March 31st, 2020 to 648,5 million Euros on March 31st, 2021. This is essentially reflecting the debt part of the OCEANEs 2025 convertible bonds issue, the drawdowns on the long-term loan facility granted by Banque des Territoires and the new bank loan in Singapore.
However, thanks to the Group’s strong cash position, net debt5 went down from 53.7 million Euros on March 31st, 2020 to 4.1 million Euros on March 31st, 2021.
Key events of FY’21
Business key events
POI substrates business agreement with Qualcomm Technologies for 4G/ 5G RF filters
After multiple years of collaboration with Qualcomm Technologies, Soitec announced on July 7th, 2020, the signing of a supply agreement of POI substrates for Qualcomm’s new generation of RF filters going to smartphones RF front end modules.
RF-SOI wafer supply agreement with GlobalFoundries for 5G radiofrequency solutions
On November 5th, 2020, Soitec announced a strategic multi-year supply agreement with GlobalFoundries for RF-SOI wafers aimed at supporting the growing demand for the foundry’s most advanced RF front-end-module platform, called 8SW, using Soitec’s 300-mm RF-SOI wafers.
Strengthened adoption of FD-SOI technology
During the fourth quarter of FY’21, Bosch chose GlobalFoundries as its partner to develop a millimeter-wave (mmWave) automotive radar system-on-chip (SoC) for Advanced Driver Assistance Systems (ADAS) applications, manufactured using GF’s 22FDX RF solution.
Also during the fourth quarter, NXP continued to expand its Ultra Low Power “crossover” product line built on 28FDS technology and manufactured by Samsung Foundry, introducing two new products aimed at securing cloud connectivity.
People- and CSR-related news
Free share allocation plans
On November 18th, 2020, the Board of Directors has allocated a free share plan to all employees representing a maximum dilution of 0.43% of the outstanding share capital, as well as free shares to 22 executives representing a maximum dilution of 0.18% of the outstanding share capital.
Soitec launches ELEVATE to attract new talent and create jobs
On January 5, 2021, Soitec launched a company-wide job creation program called ELEVATE to firstly recruit 100 new high potentials at its headquarters and production facilities in Bernin, before rolling out the program in Singapore where Soitec is ramping up its production and operations.
Soitec enters Gaïa Index while engaging to set new global climate and sustainability targets
On January 11, 2021, Soitec announced it has received an 82/100 score in Gaïa Rating’s 2020 ESG survey, ranking 16th amongst 230 rated companies. Soitec consequently joined the Gaïa Index, which groups the 70 top-rated companies. Soitec also achieved in December 2020 an upgrade in its CDP rating, from category F to category C. In the meantime, Soitec engaged to set itself new and ambitious mid- and long-term targets to cut its greenhouse gas (GHG) emissions and increase its support to reach the objectives of the COP21 Paris Agreement on climate change. Soitec’s objectives and achievements in environmental sustainability will be monitored, validated and disclosed in cooperation with the globally recognized Science Based Targets initiative (SBTi).
Other key events
Acquisition of a further 20% stake in Dolphin Design
On November 13th, 2020, Soitec acquired from its partner MBDA a further 20% equity stake in Dolphin Design, increasing its holding to 80%, with MBDA still owning the remaining 20%.
France awards Soitec-led European consortium for semiconductor innovation
On December 17th, 2020, the French Government has granted the REFERENCE consortium, a project based on the Silicon on Insulator substrate technology and led by Soitec, the “Étoile de l’Europe” (“Star of Europe”) award for innovation in telecommunication. REFERENCE brings together 15 multidisciplinary partners from four European countries.
Outlook
Soitec is upgrading its revenue outlook for FY’22, now expecting FY’22 revenue to reach around 950 million Dollars, against a previous guidance at above 900 million Dollars. Based on a €/$ rate of 1.2, Soitec’s new guidance stands at around 800 million Euros. This represents a growth of around 40% at constant exchange rates and perimeter1.
Organic growth is expected across all diameters. Soitec expects strong growth in 300-mm wafer sales driven by RF-SOI to support the ongoing deployment of 5G smartphones, by FD-SOI with applications in 5G, edge computing and automotive, as well as by Imager-SOI. Soitec also expects further growth in 200-mm wafer sales thanks to continuous increase of RF-SOI content in smartphones. Finally, Soitec expects a sharp increase in 150-mm POI wafer sales.
Soitec expects its FY’22 Electronics EBITDA2 margin3 to reach around 32%. This represents circa 130 basis points improvement from FY’21. Despite expected unfavorable currency impact, Soitec will benefit from a full loading of Bernin I and Bernin II production facilities, a higher loading of Singapore plant as well as favorable raw material prices due to suppliers long-term agreements.
In addition, Soitec anticipates Electronics adjusted net cash out related to capital expenditure to reach around 240 million Euros in FY’22, essentially reflecting an acceleration in capacity investments to support Singapore ramp-up in 300-mm and further capacity increase in 150-mm at Bernin III for POI products.
Soitec’s strategic vision for the next five years will be unveiled during 2021 Capital Markets Day that will be held on June 10th, 2021. A separate press release outlining Soitec’s financial targets for 2026 will be issued on June 10th, 2021 before market opens.
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FY’21 results will be commented as part of Soitec’s 2021 Capital Markets Day to be held in English on June 10th, 2021 at 2:00pm CET
A live webcast of the Capital Markets Day will be accessible at the following address: https://channel.royalcast.com/webcast/soitec/20210610_1/
The slide presentation will be available on Soitec’s website at 2:00pm CET.
The replay of the event will be available at the same address: https://channel.royalcast.com/webcast/soitec/20210610_1/ or directly from Soitec’s website.
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Agenda
Q1’22 revenue is due to be published on July 21st, 2021 after market close.
Soitec’s Annual General Meeting will be held on July 28th.
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Disclaimer
This document is provided by Soitec (the “Company”) for information purposes only.
The Company’s business operations and financial position are described in the Company’s 2019-2020 Universal Registration Document (which notably includes the 2019-2020 Annual Financial Report) and in the Company’s FY’21 half-year report released on November 19th, 2020. The Company’s 2019-2020 Universal Registration Document was filed with the AMF. Both the Universal Registration Document and the half-year report are available on the Company’s website in both French and English versions (www.soitec.com, in section “Company – Investors – Financial Reports”).
Your attention is drawn to the risk factors described in Chapter 2.2 of the Company’s 2019-2020 Universal Registration Document.
This document contains summary information and should be read in conjunction with the 2019-2020 Universal Registration Document and the FY’21 half-year report.
This document contains certain forward-looking statements. These forward-looking statements relate to the Company’s future prospects, developments and strategy and are based on analyses of earnings forecasts and estimates of amounts not yet determinable. By their nature, forward-looking statements are subject to a variety of risks and uncertainties as they relate to future events and are dependent on circumstances that may or may not materialize in the future. Forward-looking statements are not a guarantee of the Company’s future performance.
The Company’s actual financial position, results and cash flows, as well as the trends in the sector in which the Company operates may differ materially from those contained in this document. Furthermore, even if the Company’s financial position, results, cash-flows and the developments in the sector in which the Company operates were to conform to the forward-looking statements contained in this document, such elements cannot be construed as a reliable indication of the Company’s future results or developments.
The Company does not undertake any obligation to update or make any correction to any forward-looking statement in order to reflect an event or circumstance that may occur after the date of this document. In addition, the occurrence of any of the risks described in Chapter 2.2 of the Universal Registration Document may have an impact on these forward-looking statements.
This document does not constitute or form part of an offer or a solicitation to purchase, subscribe for, or sell the Company’s securities in any country whatsoever. This document, or any part thereof, shall not form the basis of, or be relied upon in connection with, any contract, commitment or investment decision.
Notably, this document does not constitute an offer or solicitation to purchase, subscribe for or to sell securities in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from the registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The Company’s shares have not been and will not be registered under the Securities Act. Neither the Company nor any other person intends to conduct a public offering of the Company’s securities in the United States.
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About Soitec
Soitec (Euronext, Tech 40 Paris) is a world leader in designing and manufacturing innovative semiconductor materials. The company uses its unique technologies and semiconductor expertise to serve the electronics markets. With more than 3,500 patents worldwide, Soitec’s strategy is based on disruptive innovation to answer its customers’ needs for high performance, energy efficiency and cost competitiveness. Soitec has manufacturing facilities, R&D centers and offices in Europe, the U.S. and Asia.
Soitec and Smart Cut are registered trademarks of Soitec.
For more information, please visit www.soitec.com and follow us on Twitter: @Soitec_EN
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Soitec is a French joint-stock corporation with a Board of Directors (Société Anonyme à Conseil d’administration) with a share capital of € 66,557,802.00, having its registered office located at Parc Technologique des Fontaines – Chemin des Franques – 38190 Bernin (France), and registered with the Grenoble Trade and Companies Register under number 384 711 909.
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Consolidated financial statements in appendix include:
- FY’21 consolidated income statement
- Balance sheet at March 31, 2021
- FY’21 consolidated cash-flows
Consolidated financial statements for FY’21
As previously reported, Soitec’s refocus on Electronics operations decided in January 2015 was nearly completed on March 31st, 2016. Consequently, the FY’21 residual income and expenses relating to Solar and Other activities are reported under ‘Net result from discontinued operations’, below the ‘Operating income’ line, meaning that down to the line ‘Net result after tax from continuing operations’, the Company consolidated income statement fully and exclusively reflects the Electronics activity as well as the Company’s corporate functions expenses. This was already the case in FY’20 financial statements.
Consolidated income statement
| FY’21 | FY’20 | |
| (Euro Millions) | (ended March 31, 2021) |
(ended March 31, 2020) |
| Sales | 583.8 | 597.5 |
| Cost of sales | (400.3) | (402.1) |
| Gross profit | 183.5 | 195.4 |
| Sales and marketing expenses | (11.7) | (10.2) |
| Research and development expenses | (44.4) | (32.5) |
| General and administrative expenses | (37.4) | (35.0) |
| Current operating income | 90.0 | 117.7 |
| Other operating income | 0.4 | 1.8 |
| Operating income | 90.4 | 119.5 |
| Financial income | 0.5 | 3.2 |
| Financial expenses | (15.3) | (7.3) |
| Net financial expenses | (14.8) | (4.1) |
| Profit before tax | 75.6 | 115.4 |
| Income tax | (1.5) | (4.9) |
| Net profit from continuing operations | 74.1 | 110.5 |
| Net profit / (loss) from discontinued operations | (1.4) | (0.9) |
| Consolidated net profit | 72.7 | 109.7 |
| Non-controlling interests | – | – |
| Net profit, Group share | 72.7 | 109.7 |
Balance sheet at March 31, 2021
| Assets | March 31, 2021 | March 31, 2020 |
| (Euro Millions) | ||
| Non-current assets: | ||
| Intangible assets | 99.1 | 87.5 |
| Property, plant and equipment | 378.2 | 297.2 |
| Non-current financial assets | 12.7 | 14.4 |
| Other non-current assets | 15.4 | 9.0 |
| Deferred tax assets | 53.1 | 37.2 |
| Total non-current assets | 558.5 | 445.2 |
| Current assets: | ||
| Inventories | 124.3 | 123.3 |
| Trade receivables | 157.4 | 167.4 |
| Other current assets | 77.1 | 73.9 |
| Current financial assets | 6.3 | 0.4 |
| Cash and cash equivalents | 644.4 | 191.0 |
| Total current assets | 1 009.5 | 556.0 |
| Total assets | 1 568.0 | 1 001.2 |
| Equity and liabilities | March 31, 2021 | March 31, 2020 |
| (Euro Millions) | ||
| Equity: | ||
| Share capital | 66.7 | 66.6 |
| Share premium | 83.2 | 82.4 |
| Reserves and retained earnings | 533.2 | 395.4 |
| Other reserves | (7.6) | 7.4 |
| Equity, Group Share | 675.5 | 551.7 |
| Total equity | 675.5 | 551.7 |
| Non-current liabilities: | ||
| Long-term financial debt | 612.3 | 192.5 |
| Provisions and other non-current liabilities | 43.8 | 40.5 |
| Total non-current liabilities | 656.1 | 233.0 |
| Current liabilities: | ||
| Short-term financial debt | 36.2 | 52.2 |
| Trade payables | 79.0 | 76.3 |
| Provisions and other current liabilities | 121.3 | 88.0 |
| Total current liabilities | 236.5 | 216.5 |
| Total equity and liabilities | 1 568.0 | 1 001.2 |
Consolidated cash-flows
| FY’21 | FY’20 | |
| (Euros millions) | (ended March 31, 2021) |
(ended March 31, 2020) |
| Consolidated net profit | 72.7 | 109.7 |
| of which continuing operations | 74.1 | 110.5 |
| Depreciation and amortization expenses | 59.9 | 45.5 |
| Impairment of non-current assets and accelerated depreciation | – | 0.0 |
| Provisions, net | 6.8 | 1.9 |
| Proceeds from disposal of assets | 0.8 | (0.2) |
| Income on assets disposals | 1.2 | (0.8) |
| Income tax | 1.5 | 4.9 |
| Net financial expense | 14.8 | 4.1 |
| Share-based payments | 20.0 | 19.5 |
| Non-cash items related to discontinued operations | 1.1 | (0.1) |
| EBITDA2 | 178.7 | 184.5 |
| of which continuing operations | 179.0 | 185.4 |
| Change in : | ||
| Inventories | (9.4) | (51.9) |
| Trade receivables | 0.4 | (33.8) |
| Other receivables | (3.0) | 11.1 |
| Trade payables | 7.4 | 11.8 |
| Other liabilities | 14.0 | 3.7 |
| Income tax paid | (14.0) | (25.6) |
| Change in working capital requirement and tax paid on discontinued operations | (0.0) | (0.1) |
| Change in working capital and tax paid | (4.7) | (84.9) |
| of which continuing operations | (4.7) | (84.7) |
| Net cash generated by / (used in) operating activities | 174.0 | 99.6 |
| of which continuing operations | 174.3 | 100.7 |
|
|
FY’21 | FY’20 |
| (Euro Millions) | (ended March 31, 2021) |
(ended March 31, 2020) |
| Net cash generated by operating activities | 174.0 | 99.6 |
| of which continuing operations | 174.3 | 100.7 |
| Purchases of intangible assets | (24.2) | (31.1) |
| Purchases of property, plant and equipment | (109.4) | (53.0) |
| Proceeds from sales of intangible assets and property, plant and equipment | 0.4 | 2.2 |
| Acquisition of subsidiaries, net of cash acquired | (1.0) | (25.5) |
| (Acquisitions) and disposals of financial assets | 1.1 | (1.2) |
| Interest received | 0.4 | 0.4 |
| Investment / divestment flows related to discontinued operations | – | 17.1 |
| Net cash used in investing activities | (132.6) | (91.1) |
| of which continuing operations | (132.6) | (108.1) |
| Capital increase and other items | (0.9) | 22.7 |
| Convertible bond (net of issuance costs) – OCEANE 2025 | 321.1 | – |
| Loans and drawdowns on credit lines | 143.2 | 22.3 |
| Repayment of borrowings (including finance leases) | (48.9) | (31.3) |
| Interest paid | (2.1) | (2.0) |
| Financing flows related to discontinued operations | (0.0) | 0.0 |
| Net cash generated by financing activities | 412.3 | 11.7 |
| of which continuing operations | 412.3 | 11.7 |
| Effects of exchange rate fluctuations | (0.3) | (4.6) |
| Net change in cash | 453.4 | 15.7 |
| of which continuing operations | 453.7 | (0.3) |
| Cash at beginning of the period | 191.0 | 175.3 |
| Cash at end of the period | 644.4 | 191.0 |
| Adjusted net cash used in investing activities (1) | (136.7) | (132.8) |
| Adjusted net cash generated byfinancing activities (1) | 416.5 | 36.4 |
(1) Adjusted net cash used by investing activities includes 4.1 million Euros in FY’21 (24.7 million Euros in FY’20) of investments which have been financed through leasing (lease-back) and adjusted net cash generated by financing activities includes the same 4.1 million Euros (24.7 million Euros in FY’20).
1 At constant exchange rates and comparable scope of consolidation; scope effect relates to the acquisition of Epigan in May 2019, which was renamed Soitec Belgium N.V. in July 2020; its revenue are included in the caption Royalties and other revenue.
2 The EBITDA represents the current operating income before depreciation, amortization, non-monetary items related to share-based payments, and changes in provisions on current assets and provisions for risks and contingencies, excluding income on asset disposals. This alternative indicator of performance is a non-IFRS quantitative measure used to measure the company’s ability to generate cash from its operating activities. EBITDA is not defined by an IFRS standard and must not be considered an alternative to any other financial indicator.
3 Electronics EBITDA margin = EBITDA from continuing operations / Revenue.
4 Audit procedures were completed and the audit report is in the process of being issued.
5 The net debt represents financial debt less cash and cash equivalents.
Attachment
Artificial Intelligence
UK Data Center Market to Reach Investment of $10.13 Billion by 2029, Get Insights on 200 Existing Data Centers and 40 Upcoming Facilities across the UK – Arizton
CHICAGO, April 16, 2024 /PRNewswire/ — According to Arizton’s latest research report, the UK data center market is growing at a CAGR of 2.37% during 2023-2029.
To Know More, Download the Free Sample Report: https://www.arizton.com/market-reports/uk-data-center-market-investment-analysis
The UK Data Center Market Report Scope
Report Scope
Details
Market Size (Investment)
USD 10.13 Billion (2029)
Market Size (Area)
955 Thousand Sq. Feet (2029)
Market Size (Power Capacity)
183 MW (2029)
CAGR: Investment (2023-2029)
2.37 %
Colocation Market Size (Revenue)
USD 5 Billion (2029)
Historic Year
2020-2022
Base Year
2023
Forecast Year
2024-2029
The UK data center market is poised for substantial growth, largely propelled by the expanding presence of Artificial Intelligence (AI) technologies across industries. Projections suggest that by 2040, an estimated one million businesses throughout the UK will have integrated AI-driven solutions into their operations. According to the Global Innovation Index 2023, the UK was ranked fourth out of 211 countries.
Key Insights
The growth of the UK data center market is fueled by investments from colocation data center operators including key players such as Equinix, VIRTUS Data Centres, Digital Realty, and Ark Data CentresMajor cloud service providers, such as AWS, Microsoft, and Google, are actively expanding their data center infrastructure in the UK. Investments and expansion initiatives by these providers align with the growing demand for cloud services.Countries including Manchester, Berkshire, and West Sussex are witnessing investments in data center facilities. Sustainability efforts such as the use of hydrotreated vegetable oil (HVO) by Datum Datacentres are prevalent across counties.The UK government has launched initiatives such as the Wireless Infrastructure Strategy, which is aiming to increase wireless network connectivity by 2030. The Digital Strategy, launched by the UK government, outlines a holistic approach to digital policy across critical domains, emphasizing the country’s commitment to digital technology.Investment Opportunities
Within the Western European region, the UK represents approximately 20% of the total data center investments. This can be attributed to the growing internet penetration and the extensive adoption of cloud-based services across various sectors within the country.The significance of the UK in submarine cable connectivity is underscored by its 56 submarine cables, linking the country to key regions such as the US, Europe, Africa, the Middle East, and Asia. The notable submarine cables include Apollo, BT-MT-1, Circe South, ESAT-1, Europe India Gateway, and NO-UK. The upcoming submarine cables, namely 2Africa, Amitie, and BT North Sea, are poised to strengthen the UK’s global connectivity further.The strategic rollout of 5G network connectivity is a key focus in the UK, spearheaded by major telecom operators, including EE, Vodafone, Ericsson, Three UK, and O2. Complementing these efforts, the UK government has initiated projects such as 5G Logistics, 5G Ports, Smart Junctions 5G, AMC2, 5G CAL, 5G Factory of The Future, and 5GEM-UK.In May 2023, Kao Data unveiled its plans to construct a 40 MW data center in Manchester’s Kenwood Point for a projected investment of $440 million; the facility is set to go live in late 2025. The strategic move into Manchester aligns with Kao Data’s commitment to advancing the region’s computing capabilities and supporting the aspirations of the UK government.In April 2023, Equinix planned to develop a 30 MW data center facility in Slough Trading Estate in Berkshire, outside London. It is a five-story building with two data halls on each floor.In April 2023, Vantage Data Centers announced the development of a second data center campus, LHR2, in West London, with an investment of around $310 million. The LHR1 data center campus, with a total area of 40,000 square feet and two 24 MW multi-story data centers, is expected to be online by 2024.To Know More, Click: https://www.arizton.com/market-reports/uk-data-center-market-investment-analysis
Existing VS Upcoming Data Centers
Existing Facilities in the Region (Area and Power Capacity)
Greater LondonBerkshireGreater ManchesterOther CountiesList of Upcoming Facilities in the Region (Area and Power Capacity)
Why Should You Buy this Research?
Market size is available in the investment, area, power capacity, and UK colocation market revenue.An assessment of the data center investment in the UK by colocation and enterprise operators.Investments in the area (square feet) and power capacity (MW) across locations in the country.A detailed study of the existing UK data center market landscape, an in-depth market analysis, and insightful predictions about market size during the forecast period.Snapshot of existing and upcoming third-party data center facilities in the UKFacilities Covered (Existing): 200Facilities Identified (Upcoming): 40Coverage: 30+ LocationsExisting vs. Upcoming (Area)Existing vs. Upcoming (IT Load Capacity)Data Center Colocation Market in the UKMarket Revenue & Forecast (2023-2029)Retail & Wholesale Colocation PricingThe UK data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.A transparent research methodology and the analysis of the demand and supply aspects of the industry.The Report Includes the Investment in the Following Areas:
IT InfrastructureServersStorage SystemsNetwork InfrastructureElectrical InfrastructureUPS SystemsGeneratorsTransfer Switches & SwitchgearsPDUsOther Electrical InfrastructureMechanical InfrastructureCooling SystemsRacksOther Mechanical InfrastructureCooling SystemsCRAC & CRAH UnitsChiller UnitsCooling Towers, Condensers & Dry CoolersEconomizers & Evaporative CoolersOther Cooling UnitsGeneral ConstructionCore & Shell DevelopmentInstallation & Commissioning ServicesEngineering & Building DesignFire Detection & Suppression SystemsPhysical SecurityData Center Infrastructure Management (DCIM)Tier StandardTier I & Tier IITier IIITier IVGeographyGreater LondonOther CountiesVendor Landscape
IT Infrastructure Providers
Arista NetworksAtosBroadcomCisco SystemsDell TechnologiesFujitsuHewlett Packard EnterpriseHuawei TechnologiesIBMJuniper NetworksLenovoNetAppData Center Construction Contractors & Sub-Contractors
2bmAECOMArupARC:MCAtkinsBladeRoom Data CentresBouygues ConstructionDeernsFuture-techHDR ArchitectureINFINITIISGJCA EngineeringKirby Engineering GroupKMG PartnershipMaceMercury EngineeringMiCiMstudioNWAOakmont ConstructionSweet ProjectsREDSPIE UKSkanskaSTO Building GroupSudlowsTTSPWaldeckSupport Infrastructure Providers
ABBAiredale International Air ConditioningCaterpillarCumminsDelta ElectronicsEatonKohler SDMOLegrandMitsubishi ElectricPiller Power SystemsRolls RoyceRiello Elettronica (Riello UPS)RittalSchneider ElectricSocomecSiemensSTULZVertivData Center Investors
Amazon Web Services (AWS)Ark Data CentresChina Mobile International (CMI)Colt Data Centre ServicesCustodian Data CentresCyrusOneCyxtera TechnologiesCorscale Data CentersDigital RealtyData DatacentresEquinixEchelon Data CentresGlobal SwitchIron MountainIonosInfinity SDCKeppel Data CentresKao DataNTT Global Data CentersLumen TechnologiesMicrosoftProximity Data CentresServerfarmSungard Availability ServicesTelehouseVantage Data CentersVirtus Data Centres (ST Telemedia Global Data Centres)YondrNew Entrants
CloudHQDigital ReefEdgeCore Digital InfrastructureGoogleGlobal Technical RealtyStratus DC ManagementKey Questions Answered in the Report
What is the growth rate of the UK data center market?
What are the driving factors for the UK data center market?
How much is the UK data center market investment expected to grow?
Who are the new entrants in the UK data center market?
How many data centers have been identified in the UK?
Get the Detailed TOC @ https://www.arizton.com/market-reports/uk-data-center-market-investment-analysis
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Artificial Intelligence
GEP NAMED ‘LEADER’ IN MULTIPLE GLOBAL PROCUREMENT SERVICES REPORTS BY TOP ANALYST FOR FOURTH YEAR IN A ROW
ISG cites GEP CONSULTING and GEP SERVICES for their ability to address complex categories in sourcing and spend management, and continued success in global engagementsCements GEP as the ideal global partner for transforming procurement, supply chain and business operationsCLARK, N.J., April 16, 2024 /PRNewswire/ — GEP®, a leading provider of AI-powered procurement and supply chain software, strategy, and managed services to Fortune 500 and Global 2000 enterprises worldwide, announced today that it has been named a Leader in the ISG Provider Lens™ – Procurement Services 2024 – Global, for the fourth year in a row. GEP is named a leader in all three categories:
Procurement Operations Modernization ServicesStrategic Sourcing and Category Management ServicesDirect Procurement Enablement and Modernization ServicesDownload a complimentary copy of each of these reports, which evaluates providers of transformation services, and the software platforms and tools enterprises use to transform procurement here.
GEP’s chief marketing officer Al Girardi, explained “At a time when business is transforming procurement to mitigate inflation and global uncertainty, GEP’s ability to integrate consulting, managed services and software makes us the ideal strategic partner for companies in driving competitive advantage, resilience, cost savings and shareholder value. GEP is the only firm globally that provides end-to-end procurement and supply chain strategy, managed services and technology solutions under one umbrella, providing a one-handshake solution for clients.”
Direct Procurement Enablement and Modernization Services
According to the ISG Provider Lens lead analyst Bruce Guptill, “GEP’s leadership builds on its ability to address complex and varying client needs and modernize direct procurement operations integrated with finance, supply chain and other associated disciplines.”
ISG Provider Lens™ cites GEP strengths in Procurement Operations Modernization Services as:Full modernization and optimization portfolio.Extensive partner network to enable, deliver and support procurement and supply chain improvement beyond the abilities of many other providers.AI-powered GEP QUANTUM low-code, cloud-native development platform for efficient integration and data exchange across procurement- and supply chain-related applications. ISG Provider Lens™ cites GEP strengths in Strategic Sourcing and Category Management Services as:Strategic sourcing and category management offerings.Robust software foundation. Deep pool of software and service partners. ISG Provider Lens™ cites GEP strengths in Direct Procurement and Modernization as:Substantial expertise and experience in direct sourcing.Software platforms including the AI-powered GEP SMART™ platform (S2P), GEP NEXXE for supply chain management, GEP GREEN™ for ESG tracking and reporting, and QUANTUM platform for AI-driven automation, analytics and low-code development.Nontraditional partnerships for direct sourcing presence.About ISG Provider Lens™ Research The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG’s global advisory team. The research currently covers providers offering their services globally, across Europe and Latin America, as well as in the U.S., Germany, Switzerland, the U.K., France, the Nordics, Brazil and Australia/New Zealand, with additional markets to be added in the future. For more information about ISG Provider Lens™ research, please visit this webpage. ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm with more than 700 clients, including more than 75 of the world’s top 100 enterprises. For more information, visit www.isg-one.com.
About GEPGEP® delivers AI-powered procurement and supply chain solutions that help global enterprises become more agile and resilient, operate more efficiently and effectively, gain competitive advantage, boost profitability and increase shareholder value. Fresh thinking, innovative products, unrivaled domain expertise, smart, passionate people — this is how GEP SOFTWARE™, GEP STRATEGY™ and GEP MANAGED SERVICES™ together deliver procurement and supply chain solutions of unprecedented scale, power and effectiveness. Our customers are the world’s best companies, including more than 550 Fortune 500 and Global 2000 industry leaders who rely on GEP to meet ambitious strategic, financial and operational goals. A leader in multiple Gartner Magic Quadrants, GEP’s cloud-native software and digital business platforms consistently win awards and recognition from industry analysts, research firms and media outlets, including Gartner, Forrester, IDC, ISG, and Spend Matters. GEP is also regularly ranked a top procurement and supply chain consulting and strategy firm, and a leading managed services provider by ALM, Everest Group, NelsonHall, IDC, ISG and HFS, among others. Headquartered in Clark, New Jersey, GEP has offices and operations centers across Europe, Asia, Africa and the Americas. To learn more, visit http://www.gep.com/.
GEP Media Contact Derek CreeveyPhone: +1 732-382-6565Email: [email protected]
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Equity Insider Commentary
VANCOUVER, BC, April 16, 2024 /PRNewswire/ — EQUITY INSIDER – Data centers are at the core of what’s powering the ongoing artificial intelligence (AI) boom. With almost every major industry shifting towards AI, massive amounts of new infrastructure will still be needed, in particular data centers. The Data Center Equipment Market is exploding, with analysts at Straits Research projecting it to surpass $164 billion by 2031, growing at a whopping 13.2% CAGR along the way. According to Technavio, 38% of growth in the Data Center Rack PDU Market growth will originate from North America, while surging data center demand is pushing the limits of available workers. Among the innovators helping to bring the AI revolution to life are a mix of innovators, including Avant Technologies Inc. (OTC:AVAI), NVIDIA Corporation (NASDAQ:NVDA) (NEO:NVDA), Intel Corporation (NASDAQ:INTC), Advanced Micro Devices, Inc. (NASDAQ:AMD) (NEO:AMD), and Amazon.com, Inc. (NASDAQ:AMZN) (NEO:AMZN).
AI tech developer, Avant Technologies Inc. (OTC: AVAI) specializes in the development of advanced AI and data center infrastructure solutions. Recently, the company announced that development on its next-generation, AI-driven resource allocation system is now fully underway. This news follows Avant’s February 2024 announcement of its decision to begin enhancing its sophisticated machine and deep learning AI system, Avant AI™, with automated data center resource management for its new high-density compute data center infrastructure. The company’s management team has expressed great satisfaction with the rapid progress made since the announcement.
This new Avant AI™ innovative initiative seeks to harness the power of AI to improve resource use, boost performance, and give businesses unmatched flexibility in their data center operations.
“We are excited about the quick development being made on our groundbreaking AI for intelligent data center management,” said Timothy Lantz, CEO of Avant. “These latest innovations will help our customers unlock new levels of performance and efficiency in their data center operations and achieve success in today’s digital era. We anticipate that Avant’s AI infrastructure solutions will directly boost our clients’ bottom lines and provide a significant competitive advantage in the marketplace.”
Avant AI™ analyzes data in real-time to foresee future resource requirements, automatically assigns resources, and adjusts to fluctuating workloads. Its multi-layered architecture maintains data quality and reliability as it converts AI suggestions into practical actions. Avant AI™ helps businesses by reducing resource waste, lessening performance delays, speeding up resource expansion, and automating resource distribution, which altogether enhances operational efficiency.
“The demands placed on data centers are constantly evolving,” said Danny Rittman, Chief Information Officer of Avant. “Traditional static provisioning and manual configuration methods struggle to keep pace with dynamic workloads and ever-increasing resource needs. Our AI-driven resource allocation system represents a paradigm shift, promising to revolutionize data center management.”
It’s easy to witness the growth of data centers by looking at leading chipmaker NVIDIA Corporation (NASDAQ: NVDA) (NEO: NVDA), which has seen its Data Center business explode by more than 400% since last year to $18.4 billion in Q4 2024, as reported in its Q4 and FY 2024 results. Key to the growth has been the surging demand for NVIDIA’s H100 graphics cards that are widely used to power generative AI apps such as OpenAI’s ChatGPT.
“Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations,” said Jensen Huang, founder and CEO of NVIDIA. “Our Data Center platform is powered by increasingly diverse drivers — demand for data processing, training and inference from large cloud-service providers and GPU-specialized ones, as well as from enterprise software and consumer internet companies. Vertical industries — led by auto, financial services and healthcare — are now at a multibillion-dollar level.”
Back in mid-December 2023, NVIDIA’s competitor Intel Corporation (NASDAQ:INTC) unveiled its own new data center chip with a focus on AI growth. The company would go on to follow this up by announcing Gaudi 3 availability to original equipment manufacturers (OEMs), including with Dell Technologies, HPE, Lenovo, and Supermicro, serving to broaden Intel’s AI data center market offerings for enterprises.
“Innovation is advancing at an unprecedented pace, all enabled by silicon – and every company is quickly becoming an AI company,” said Pat Gelsinger CEO of Intel. “Intel is bringing AI everywhere across the enterprise, from the PC to the data center to the edge. Our latest Gaudi, Xeon and Core Ultra platforms are delivering a cohesive set of flexible solutions tailored to meet the changing needs of our customers and partners and capitalize on the immense opportunities ahead.”
Companies are aiming to expand their GenAI projects from initial trials to full-scale production. To achieve this, they require accessible solutions based on powerful, cost-effective, and energy-efficient processors, such as the Intel Gaudi 3 AI accelerator. These solutions must also tackle challenges like complexity, fragmentation, data security, and compliance needs.
Not to be left out, Advanced Micro Devices, Inc. (NASDAQ: AMD) (NEO: AMD) also made adjustments back in December 2023, by introducing new AI and Data Center products, including its Instinct MI300X Series accelerator to deliver robust performance for HPC and AI workloads. The MI300X launch was seen as a move that could help the chipmaker to better compete with Nvidia amid the AI boom. Then by early April 2024, AMD announced the expansion of its AMD VersalTM adaptive system on chip (SoC) portfolio, with its newer Versal AI Edge Series Gen 2 and Versal Prime Series Gen 2 adaptive SoCs, which bring preprocessing, AI interference, and postprocessing together in a single device for end-to-end acceleration of AI-driven embedded systems.
“The demand for AI-enabled embedded applications is exploding and driving the need for single-chip solutions for the most efficient end-to-end acceleration within the power and area constraints of embedded systems,” said Salil Raje, senior vice president and general manager, Adaptive and Embedded Computing Group, AMD. “Backed by over 40 years of adaptive computing leadership, these latest generation Versal devices bring together multiple compute engines on a single architecture offering high compute efficiency and performance with scalability from the low-end to high-end.”
As of late March 2024, online giant Amazon.com, Inc. (NASDAQ: AMZN) (NEO: AMZN) appears to be going all in on AI-driven data centers, with a $150 billion investment to retain its cloud computing edge over competitors like Microsoft and Google. The biggest headline grabbing element of the giant investment is that one of the largest nuclear power plants in the USA will directly power new Amazon Web Services (AWS) data center. As of the announcement, Amazon’s cloud computing subsidiary was being used by upwards of 1.45 million businesses, according to an internal report.
“We’re expanding capacity quite significantly,” said Kevin Miller, a vice president at AWS. “I think that just gives us the ability to get closer to customers.”
The announcement came within a couple weeks of an announcement by Amazon it would be extending its collaboration between AWS and NVIDIA to advance Generative AI innovation. Included in the extension, the duo plan to integrate Elastic Fabric Adapter (EFA) for petabit-scale networking and Amazon Elastic Compute Cloud (Amazon EC2) UltraCluster for hyper-scale clustering.
“The deep collaboration between our two organizations goes back more than 13 years, when together we launched the world’s first GPU cloud instance on AWS, and today we offer the widest range of NVIDIA GPU solutions for customers,” said Adam Selipsky, CEO at AWS. “Together, we continue to innovate to make AWS the best place to run NVIDIA GPUs in the cloud.”
Source: https://equity-insider.com/unlocking-the-trillion-dollar-ai-market-what-investors-need-to-know/
DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Equity Insider is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Avant Technologies Inc. advertising and digital media from the company directly. There may be 3rd parties who may have shares Avant Technologies Inc., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of Avant Technologies Inc. which were purchased as a part of a private placement. MIQ reserves the right to buy and sell, and will buy and sell shares of Avant Technologies Inc. at any time thereafter without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ has been approved by the above mentioned company; this is a paid advertisement, and we own shares of the mentioned company that we will sell, and we also reserve the right to buy shares of the company in the open market, or through further private placements and/or investment vehicles. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
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