MA NAGEMENT REPORT - P ERFORM AN CE AN D OUTLOOK
15
EXPECTATIONS FOR 2021
DATA CENTER:
CONSOLIDATED RESULTS:
During 2020 the Company expanded its OEM partners
The Company's consolidated results for 2020 exceeded
capital of $32.8 million and non-current liabilities of $2.6
GAMING AND ENTHUSIAST:
with the additions of HPE and Supermicro, which resulted
Management's expectations communicated in the prior
million. Since 2016, the Company has generated positive
In 2020, favorable effects of COVID-19 shelter-in-place
in the addition of nearly 20 new liquid cooled offerings to
year report due to favorable effects of COVID-19 shelter-
cash flows and operating income. From 2013 to 2016,
restrictions which resulted in strong demand in PC gam-
its data center line of products. Including Fujitsu, Asetek’s
in-place restrictions, which resulted in strong demand
Asetek financed operations principally through offerings
ing and eSports drove Asetek’s Gaming and Enthusiast
long-standing OEM, the Company anticipates growth in
for the Company's Gaming and Enthusiast products. For
of common shares on the Oslo Stock Exchange.
revenue to record levels. In 2021, Asetek expects to
shipments of RackCDU™ liquid cooling in 2021.
2021, the Company expects revenue to increase by 10%
LIQUIDITY AND FINANCING As of December 31, 2020, the Company has working
While there is no assurance that the Company will generate sufficient revenue or operating profits in the future, Asetek’s management estimate that the Company’s capital resources are sufficient to fund operating activities in the foreseeable future, based on financial forecasts. To the extent necessary to fund expansion or other liquidity needs, management will consider offerings of debt, equity, or a combination thereof, depending on the cost of capital and the status of financial markets at that time.
continue to invest in and launch innovative new high-performance products for gamers and enthusiasts. With two recently announced acquisitions – JMH Gallows Pound Technologies Ltd. and Granite Devices Inc., both developers of gaming hardware and software technology – the Company plans to capitalize on opportunities identified within the Asetek eSports Academy. Consistent with prior years, Asetek plans to continue to focus its resources on the Gaming and Enthusiast segment, growing market share through existing and new OEMs, and building the
Asetek’s Direct-to-chip liquid cooling enables power savings and CO2 emission reductions from the reuse of data center waste heat. Significant long-term revenue growth is expected, though public standards are needed to trigger wider data center adoption of liquid cooling. Asetek continues to participate in targeted campaigns to influence and educate politicians and support wider understanding of the significant environmental and circular economy benefits enabled by liquid cooling.
to 20% from 2020, with gross margins lower than 2020. As such, management expects the Company to report operating income of between $9 and $15 million in 2021. However, Management notes significant challenges in predicting future earnings due to variations in import tariffs and foreign exchange rates. The Company recognizes continued uncertainty related to potential impact from COVID-19 over time. These uncertainties can impact actual performance and expectations.
Asetek brand.
L IQ U ID CO O LIN G D O NE R I GH T
