“There is no doubt that we have faced many challenges in 2022. We’re not through the year yet and still have plans to reframe and deliver better output, but supply chain delays have impacted production – in terms of new product cut-in, ramping, and volume – which has prevented backlog execution, deliveries, and milestone payment collections. We have continued to develop and position the business, but the delays reached a point in Q3, where we were left with no choice on dropping revenue and margin guidance, lowering new orders expectations, and announcing the need to address near-term liquidity challenges, up to and including the possible sale of the business.
Our hypothesis that lighthouse customers will drive our growth remains unchanged. We know that these accounts will drive core growth, and a broader ripple effect on the regions and countries where these customers operate.
What has changed is that we will focus our investment, product development, and resource allocation on these customers and markets. We are not dropping the broader marketplace (which remains large and full of potential) but rather than chasing, we will wait for these markets to come to us. This allows us to be far more focused, with a lower cost structure, while positioned to react and respond as opportunities evolve.
Finally, we recently announced the issuance of Preferred Shares that will provide new capital up to $20 million with $5 million already funded and an additional $5 million to be funded by December 1, 2022. In addition, we also announced our plans to apply for delisting from the NASDAQ First North Growth Market.
CEO of Smart Wires
The Company’s Key Business Highlights for Q3 2022:
The full Smart Wires Technology Ltd Q3 2022 Interim Report is attached to this release, and can be found at: https://www.smartwires.com/investors/financial-reports-presentations/.
Important notice about forward-looking information
This interim report contains certain forward-looking information and statements that reflect the Company’s current views on future events as well as financial and operational developments. Words such as “refer”, “assess”, “expect”, “can”, “plan”, “estimate”, “calculate”, “could” and other expressions that indicate indications or assessments regarding future developments or trends, and which does not relate to historical facts, constitutes forward-looking information. Forward-looking information is inherently associated with both known and unknown risks and uncertainties because it is dependent on future events and circumstances. Forward-looking information does not constitute a guarantee regarding future results or development and the actual outcome may differ materially from what is stated in forward-looking information. Neither the Company nor anyone else make any representations about publishing updates or revisions of forward-looking information as a result of new information, future events or similar circumstances other than as provided by applicable mandatory rules and regulations.
Julie Andrews, CFO
Tel: +1 901 687 8314
This information is information that Smart Wires Technology Ltd is obliged to make public
pursuant to the EU Market Abuse Regulation. The information was submitted for publication,
through the agency of the contact persons set out above, at 2022-11-17, 07:30 CET
ABOUT SMART WIRES TECHNOLOGY LTD.
Smart Wires conducts grid technology business that helps utilize, modernize, optimize, and monetize grid capacity to meet the demands and opportunities of the energy transition. The Company operates in the global transmission grid technology market and is a leader in modular power flow control technology. Power flow control technology controls and directs power flow on high voltage electric transmission systems. Smart Wires serves transmission owners, primarily electric utilities. Transmission owners use power flow controllers to eliminate line overloads by redirecting power to other lines, to reduce transmission congestion, and to enable renewable energy connection and dispatch. Currently, Smart Wires’ main projects are located in Europe, the United States and Australia with upcoming projects in South America and Canada. The Company has a large customer base comprised of utilities globally. Smart Wires Technology Ltd is listed on the Nasdaq First North Growth Market. For more information, please visit www.smartwires.com.