u-blox reports its first quarter 2024 trading update

u-blox AG / Key word(s): Quarter Results u-blox reports its first quarter 2024 trading update 24-Apr-2024 / 07:00 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement. 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.