14
M A N AGE ME N T RE P O RT - P ERFO RM A N C E A N D O U T LO O K
PERFORMANCE IN 2021
($2.4 million). Share-based compensation cost associated
BALANCE SHEET
STATEMENT OF CASH FLOWS
with warrants and options issued to employees was $1.0
Asetek’s total assets at December 31, 2021 were $75.4
Net cash provided by operating activities was $14.3 million
PROFIT AND LOSS
million in 2021 ($0.9 million).
million, compared with $71.4 million at the end of 2020.
in 2021 ($11.4 million provided in 2020). The change was
The principal components of this change are as follows:
principally due to changes in the timing of collections of
Intangible assets increased by $7.7 million as a result
receivables and disbursements on trade payables, partly
of the purchase of intellectual property from Granite
offset by lower net income in 2021.
Total revenue for 2021 was $79.8 million, representing growth of 10% from 2020 ($72.8 million). Sealed loop cooling unit shipments for 2021 totalled 1.4 million, a 15% increase over 2020 (1.2 million). Average Selling Prices (ASP) for the year 2021 decreased to $52.62 from $53.91
Excluding the gain on sale of land, the costs associated with the new SimSports business and the one-time impairment charge to write down data center assets, operating expense in 2021 increased 9% from 2020.
Devices, Inc.; Property, plant and equipment increased by $4.7 million due to the purchase of land and building
in 2020. The fluctuations reflect changes in shipments of
Adjusted EBITDA was $7.2 million in 2021, compared with
construction for a future headquarters facility; Inventory
Gaming and Enthusiast products,which were negatively
$15.6 million in 2020. Adjusted EBITDA in 2021 repre-
grew by $3.0 million in preparation for projected future
impacted by a global shortage of semiconductor chips,
sents operating income of $0.8 million, plus depreciation
deliveries to customers. Trade receivables decreased by
particularly GPU's, that has suppressed demand for
of $3.8 million, plus share-based compensation of $1.0
$7.9 million due to lower sales in the fourth quarter of 2021
Asetek's coolers.
million, plus $1.7 million one-time charge associated with
compared with the same period of 2020. Cash and cash
exit of HPC data center niche.
equivalents declined by $3.8 million, reflecting payments
Gross margin decreased to 41.8% in 2021 from 47.0% in 2020, reflecting higher component costs due to a weaker
Foreign currency transactions in 2021 resulted in a $0.8
U.S. dollar, increased shipping costs due to global supply
million gain ($1.4 million loss in 2020).
chain disruptions, and a change in the mix of product shipments. In 2021, total operating expense increased to $32.6 million from $23.3 million in 2020. Operating expense in 2021 includes a one-time charge of $1.7 million for asset writedowns and other costs associated with Asetek’s planned exit of the HPC data center niche, and a gain on sale of land of $0.7 million. The increase in operating expense reflects investments in the new SimSports line of business. SimSports operating expense, including allocations of fixed overheads and some one-time costs, was $6.2 million in 2021 (zero in 2020). Legal cost incurred associated with defense of existing IP and securing new IP was $4.7 million in 2021 P E RFO RM ANCE - PR ECI SI ON - PA S S ION
Income tax expense was $0.1 million in 2021 compared with $0.2 million expense in 2020.
was due to the purchase of land and building for a future headquarters facility and the purchase of intellectual property and other assets from Granite Devices Inc. These outflows were partly offset by proceeds from the sale of a parcel of land. Cash used by financing activities was $4.6 million in 2021
mon shares in 2021.
compared with $5.1 million used in 2020. During 2021,
Total liabilities increased by $3.1 million in 2021, due to offsetting factors. Trade payables increased by $4.4 million due to proactive management of suppliers and changes in the timing of payments. Accrued compensation and
2021, compared with total comprehensive income of $11.6
employee benefits decreased by $1.1 million due to timing
million in 2020. Comprehensive income included a neg-
of related disbursements.
$2.4 million in 2020).
compared with $4.8 million used in 2020. The increase
made on asset acquisitions and the repurchase of com-
Asetek had a total comprehensive loss of $0.4 million for
ative $1.7 million translation adjustment in 2021 (positive
Cash used by investing activities was $13.2 million
Working capital (current assets minus current liabilities) totaled $20.6 million at December 31, 2021 ($32.8 million in 2020). The change reflects the Company’s long-term asset acquisitions and repurchase of common shares in 2021.
Asetek repurchased 400 thousand shares of common stock for $4.8 million and paid $0.9 million on leases. These effects were partly offset by $0.9 million received for shares issued on options exercised by employees and funds drawn on a line of credit. Net decrease in cash and cash equivalents was $3.8 million in 2021, compared with increase of $2.6 million in 2020. Cash and cash equivalents at December 31, 2021 was $23.3 million ($27.1 million in 2020).
