Leuven, Belgium – September 1, 2016 – Option N.V. (EURONEXT Brussels: OPTI; OTC: OPNVY), the company connecting Things to the Cloud, today announced its results for the first half fiscal year ended June 30 2016. The financial information reported in this release is presented in Euros and has been prepared in accordance with the recognition and measurement criteria of IFRS as adopted by the European Union. The accounting policies and methods of computation followed in the attached financial statements are the same as those followed in the most recent annual financial statements.
FINANCIAL HIGHLIGHTS OF THE FIRST HALF FISCAL YEAR 2016
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Total revenues for the first half year of 2016 were EUR 3,9 million compared with EUR 2,6 million realized in the first half of 2015, an increase of 50%. This increase was mainly the result of Public Lighting sales (EUR 1,9 Mio) resulting from the acquisition of Innolumis Public Lighting BV and Lemnis Public Lighting BV in January 2016. |
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Gross margin for the first half year of 2016 was 45,8 % on total revenues compared with a gross margin of 42,1 % for the comparable period in 2015. |
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Thanks to the continuous cost reductions, the operating expenditure decreased with 1,1 Million EUR. As the Opex includes EUR 780 thousand for the newly acquired Public Lighting business, the actual Opex savings amount to EUR 1,9 million. |
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Financial costs increased, mainly as a result of interests due on the bridge loans which were issued in the first half of 2015 and in 2016 and also because of exchange rate losses. |
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The first half of 2016 EBIT amounted to EUR -3,2 million compared to EUR -5,0 million during the corresponding period 2015. The net result amounted to EUR -4,5 million compared to EUR -6,0 million as per June 30 2015. The newly acquired Public Lighting Business made a small net profit of EUR 13 thousand. |
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The cash position decreased from EUR 4,1 million at the end of 2015 to EUR 0,4 million at the end of June 2016. |
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During the first half of 2016, the company received a bridge funding of 0,8 million EUR. |
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During the first half of 2016, 1.546.492 new shares we created as the result of the conversion of convertible bonds. |
Jan Callewaert, Option’s Executive Chairman, commented on the results:
“Since the Board entrusted me with the Management of the Company following the departure of the CEO, I have focused on redirecting the CloudGate go-to-market from an indirect sales to a direct sales model.
Directly understanding the needs from end customers looking for IoT solutions enabled by the complete CloudGate solution is proving successful.
We are experiencing a business shift where we see the majority of sales coming from direct relationships with industrial corporations and manufacturers. I am happy to announce that the Company won business in the field of water pump monitoring, advanced energy monitoring, water consumption measurement in apartment buildings, frozen pipes monitoring in public buildings and connected stores.
Option’s daughter Innolumis, operating in the LED public lighting business, since its acquisition, is already at a break-even level and is showing promising opportunities in expanding its sales in Europe and beyond. With the demand of cities and municipalities for energy-efficient street lighting, coupled with smart technology, we are currently in discussions to start piloting several city projects.
We have passed the tipping point and in today’s outlook, we are confident to see Option’s overall revenues nearly double for 2016 compared to 2015.
We are focusing on sales.”
Business Update
In the first half of the year Option still faced postponed sales. However, this trend is changing as after a change in management the focus shifted towards a direct sales model and the Company has now sufficient signed sales orders to be confident to realize increased sales in the second half of the year.
Throughout the first half of 2016 the Company continued to embark on commercializing end-to-end solutions in different business segments.
- Smart Lighting Solutions: through the acquisition of InnoLumis, the Company has a Smart Lighting Solution, generating a vivid interest from numerous cities and municipalities;
- CloudGate customized solutions: strategic partnerships were signed during the first half of 2016 with industrial as well as retail partners, with an expectation to substantially increase our CloudGate sales.
- Connected Car Solutions: through the strategic partnership with Danlaw Inc., the Company, has a complete Connected Car Solution targeted towards insurance companies and fleet managers;
On the financial level, the Company has limited means, but will continue its efforts to search and find funding and restructure its balance sheet in order to facilitate its commercial projects and activities.
Corporate
On January 21, 2016 Option announced the acquisition of the shares of the Dutch LED lighting companies Lemnis Public Lighting BV and Innolumis Public Lighting BV and merges the two companies into a single commercial organization under the name Innolumis Public Lighting.
On January 26, 2016, the Extraordinary Shareholder’s Meeting of the Company decided to renew the authorized capital of the Company for a total amount of four million eight hundred forty four thousand eight hundred two euro and seventy cent (EUR 4,844,802.70), both by means of contribution in cash or in kind, within the limits imposed by the Belgian Code of Companies as well as by conversion of reserves and issue premiums, with or without the issue of new shares, with or without voting right, or trough the issue of convertible bonds, subordinated or not, or through the issue of warrants or of bonds to which warrants or other movables are linked, or of other securities, such as shares in the framework of a Stock Option Plan. Furthermore, the extraordinary Shareholder’s Meeting of the Company decided, to grant the board of directors special authority, in the event of a public takeover bid for securities issued by the Company during a period of three (3) years, running from the Extraordinary Shareholders’ Meeting which has resolved on this authorization, to proceed with capital increases under the conditions foreseen by the Belgian Code of Companies. The extraordinary Shareholder’s Meeting of the Company decided to authorize the board of directors, in the interest of the company, within the limits and in accordance with the conditions imposed by the Belgian Code of Companies, to limit or suspend the preferential rights of the shareholders, when a capital increase occurs within the limits of the authorized capital. This limitation or suspension may likewise occur for the benefit of one or more specified persons.
Furthermore, the Extraordinary Shareholder’s Meeting of the Company decided to grant 17 391 304 warrants to Danlaw Inc. for a total amount of EUR 4 million, if exercised, this would increase the capital of the company with eight hundred sixty-nine thousand five hundred sixty five euro and twenty cent (EUR 869,565.20).
On March 9, 2016 the Board of Directors has decided to terminate the mandate of the CEO, Frank Deschuytere, with immediate effect. The Board has decided to entrust its Executive Chairman, Mr. Jan Callewaert, with the daily management of the Company.
On May 12, 2016, 1.546.492 new shares were created as a result of the conversion of convertible bonds.
The decisions to terminate the mandates of FDVV CONSULT BVBA, represented by Mr. Frank Deschuytere, and JINVEST BVBA, represented by Jurgen Ingels, as directors of the Company, were accepted and approved by the Shareholder’s Meeting of May 31, 2016.
On June 3, 2016 the Board decided to co-opt VERMEC NV, represented by Peter Cauwels as new independent non-executive director of the Board for a period of 4 years as from July 1st, 2016.
As of June 30, 2016, the Board was composed of five members, namely: (1) Mr. Jan Callewaert, executive Chairman, (2) Raju Dandu, non-executive director, (3) FVDH Beheer BVBA, represented by Mr. Francis Vanderhoydonck (permanent representative), non-executive independent director, (4) Qunova BVBA, represented by Mr. Jan Vorstermans (permanent representative), non-executive independent director, and (5) Sabine Everaet, non-executive independent director.
Going concern
Given the continued cash drain during the first half of 2016, the Board continues to work on project and financial funding, and further cost alignment.
On the day of the publication of this report, the Company has very limited financial means.
However, the most recent sales forecasts, based on concrete signed orders, indicate a growth compared to actual realized revenues in the first half of the year. On that basis, there is sufficient confidence that the required additional funding will be found.
Thus, The company is taking initiatives to strengthen the group’s financial position in the short-term, in addition to the financial commitments until the end of October 2016 as set out in the annual report. The Company continues the negotiations on the balance sheet restructuring as also the search for new investors at the level of the group or its subsidiaries.
The Company is working on a long-term solution. The Company will further report to the market by the end of September and thereafter on an ongoing basis.
Therefore the Board has decided to prepare the interim accounts under the going concern principle.
For the entire press release, including tables, click on the link below.
Option reports First Half Year 2016 results
For the entire interim report, click on the link below