Gapwaves (GAPW) Q3 2023 earnings summary

Executive summary

• Q3 net sales declined YoY against a high-comparison quarter that included Bosch licensing revenue and production-equipment sales; focus remains on automotive antenna industrialization and expanding into non-automotive radar.

• Multi-Layer Waveguide (MLW) launched, with validation by a leading Tier 1 and strong initial automotive customer interest.

Financial highlights

• Net sales were SEK 7 million versus SEK 31 million in Q3 2022.

• Adjusted EBITDA was SEK 9.6 million; adjustment reflects effects from associated companies Metasum and Sensrad.

• Quarter-end cash position was SEK 103.5 million.

Outlook and guidance

• 2024 is expected to be pivotal, with initial antenna products entering production and ramping toward high volumes.

• Hella sixth-generation antenna has SOP at the end of 2024; vehicles carrying it are expected on roads in 2025.

• Hella seventh-generation program is progressing toward a 2026 SOP; discussions have started on generation eight.

• Sensrad planned its commercial product launch for 2024, with commercial launch expected by year-end.

• Automotive contracts typically take 3–5 years to reach production, followed by 6–8 years of volume production.