Gapwaves (GAPW) Q2 2023 earnings summary

Executive summary

• Automotive demand and project activity increased, while non-automotive tech projects faced delays tied to customer financing and go-to-market challenges.

• Scaling investment and a SEK 40 million investment in Sensrad mark a shift toward supplier capacity and adjacent radar-sensor markets.

Financial highlights

• Q2 sales were SEK 8.9 million versus SEK 16.4 million YoY; prior-year sales included more than SEK 5 million from production equipment.

• Q2 EBITDA was SEK -9.5 million versus SEK 3.8 million YoY, reflecting lower sales and investment in organizational expansion.

Outlook and guidance

• Tech-sector project delays may persist through the year as customers adjust financing and market-entry plans.

• Sensrad targets launch of dynamic and static off-the-shelf radar products early next year, with qualification during the year.

• Sensrad aims to convert prototype evaluations into contracts, hopes to win several RFIs/RFQs during autumn, and anticipates 5–10x annual volume growth.

• Sensrad is developing supply capacity for thousands of units next year, with volumes targeted to increase by a factor of 10 the following year.