Oslo, Norway — Our third quarter showed Elliptic Labs business performing strongly in securing new agreements, especially in light of the global Covid-19 pandemic and its continuing end market and macro-economic impact. Smartphone demand is becoming highly resilient with larger contracts, new customers and longer commitments, while our laptop market is showing significant opportunities. As this momentum continues we expect robust growth in the fourth quarter based on meaningful ramp ups in the consumer market.
Operating revenue for the third quarter totaled NOK 7.1 million (NOK 12.7 million), year to date NOK 17.5 million (NOK 34.1 million). Operating costs totaled NOK 14.7 million (NOK 15.4 million), year to date NOK 44.8 million (NOK 47.9 million). The largest portion of operating costs were personnel expenses which accounted for NOK 9.4 million (NOK 11.3 million), year to date NOK 30.6 million (NOK 33.0 million). The operating loss for the quarter was NOK 7.6 million (NOK 2.7 million), year to date NOK 27.3 million (NOK 13.8 million).
The loss before tax was NOK 8.3 million (NOK 3.8 million), year to date NOK 29.7 million (NOK 16.3 million).
The cash flow from operating activities was NOK -2.6 million (NOK -1.8 million), year to date NOK -19.7 million (NOK -6.4 million).
Despite the lower financial figures for the first three quarters of 2020 compared to 2019, Elliptic Labs expects to deliver a financial year 2020 with a top-line not far from the previous year in line with expectations set in connection with the listing at OSE Merkur Markets in October 2020.
After having raised NOK 125m in new equity capital in October 2020, Elliptic Labs has paid down interest bearing debt with NOK 25m and stands in a very solid position for fueling future growth.
Highlights from the third quarter:
- Secured a USD 3 million license contract with a smartphone manufacturer, not recognized as revenue this quarter
- Signed contract with a new smartphone customer
- Volume-based revenue from previously launched smartphones
- Launched with smartphone customer Xiaomi
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