Slide 1: Interim Results HY25
Interim Results HY25 Tommy Cook, CEO Ashleigh Greenan, CFO
Slide 2: Calnex Solutions: test solutions for telecoms and cloud computing
Calnex Solutions A selection of our customers Test solutions for the world’s telecoms and cloud computing industries • Established position at the forefront of the global test and measurement industry • Our portfolio enables our customers to validate the performance of the critical infrastructure as
Slide 3: Why we are needed
Why we are needed Monitoring and Maintaining networks New product development lifecycle R&D Design Validation and Conformance Maintenance Testing post deployment Monitoring networks Testing ▪ Deep insight is required to identify and rectify ▪ Monitor all end points to identify when faults occur. com
Slide 4: Review of the period
Insight and Innovation
Slide 5: HY25 overview
HY25 overview Resilient trading in Benefiting from R&D Channel Partner FY25 Performance challenging telecoms investment and growing Network operating to expected to be in line market product offering plan with market expectations • £7.4m • Order levels improved in Q2, • New channel partners • Entere
Slide 6: Spotlight: major new channel partners
Spotlight: major new channel partners New partners onboarded, bringing total to over 75 Examples of the strengths of our new partners: XS Optics (aka Teracomm) • Covers US/Canada • Selected due to high level off market knowledge • Strong relationships with many target Calnex customers ClouDepend • C
Slide 7: Long-term telecoms market drivers intact and growth opportunity in cloud computing and defence
Long-term telecoms market drivers intact and growth opportunity in cloud computing and defence Growing need Evolution of networking for infrastructure and techniques, technology cloud-based Application and standards to meet test future demands. Growth in AI will increase data Increasing telecoms Nee
Slide 8: Financial review
Insight and Innovation
Slide 9: Financial resilience
Financial resilience • Order levels improved in Q2 following a subdued Q1, with growth in Paragon-neo and NAA orders Interim dividend Cash position as at 31 October • Gross margins have remained robust and in line with the prior period. 0.31p £10.3m HY24: 0.31p • Overhead and R&D control measures tr
Slide 10: Revenue analysis
Revenue analysis Region • ROW: Demand levels in the region least affected by slow-down. Revenue decline in current Period driven by timing on shipments. • North Asia: Revenues relatively flat compared to prior period. China remains challenging due to impact of US restrictions. Continuing to focus on
Slide 11: Revenues resilient in challenging market environments
Revenues resilient in challenging market environments Margins continue to remain stable Period ending 30 September H1 25 H1 24 £000 £000 • Revenue decline of 6% driven by continued challenging end Revenue 7,359 7,847 markets. Cost of sales (1,920) (2,011) Gross Profit 5,439 5,836 • Gross margin 74%,
Slide 12: Robust cash position
Robust cash position Increased post period end Period ending 30 September H1 FY25 H1 FY24 • Net cash outflow from operating activities £0.1m (H1 24: £000 £000 £2.5m). Cashflows from operating activities EBITDA 984 1,405 • Working capital cash outflow of £1.3m (H1 24: £3.3m), Add back non cash items
Slide 13: Strategy and market opportunity
Strategy and market opportunity
Slide 14: Three-Pillar Strategy
Three-Pillar Strategy Consistent Strategic Focus Continued product Expand within the Cloud Target select acquisition and innovation to capitalise on Computing sectors strategic partnership growth of 5G Infrastructure and applications/end opportunities to add to devices utilising centralised processi
Slide 15: Evolving product portfolio
Evolving product portfolio Synchronisation Testing synchronisation Network emulation for testing in the lab performance of networks real-world testing in the lab LAB SYNC NETWORK SYNC NETWORK AND APPLICATION ASSURANCE Telecom Telecom Data Centre Infrastructure Validation Applications Testing Prove c
Slide 16: Spotlight on: Network and Application Assurance market
Spotlight on: Network and Application Assurance market Defence Space Datacenter Telco Enterprise Training & Satellite HCI / Cloud / AI ORAN / 5G+ Simulation / Non-Terrestrial Networks Networks Gov Ministries / Federal Prime Contractors, Tech Vendors / NEMS, Network Operators, Large Corporations, Sys
Slide 17: Spotlight on: Utilising Partners to expand Sync marketing
Spotlight on: Utilising Partners to expand Sync marketing Industry innovation continuing at pace Calnex November 2024
Slide 18: Outlook
Outlook • The macroeconomic environment remains Long-established Transition to 5G and unpredictable. cloud computing industry position with drive requirements reputation for for test • New product initiatives expected to deliver revenue winning products instrumentation growth in H2 and FY26. Excepti
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Slide 20: Appendix
Insight and Innovation
Slide 21: Balance sheet
Balance sheet Sep-24 Sep-23 Mar-24 £000 £000 £000 Non-current assets Intangible assets 12,483 11,168 12,110 Goodwill 2,000 2,000 2,000 Tangible & right of use assets 440 843 628 Deferred tax asset 533 691 1,246 15,456 14,702 15,984 Current assets Inventories 6,086 3,837 5,373 Trade and other receiva
Slide 22: The Board
The Board Tommy Cook Ashleigh Greenan Stephen Davidson Graeme Bissett Margaret Rice-Jones Helen Kelisky CEO CFO Non-Exec Chairman Non-Exec Director Non-Exec Director Non-Exec Director Tommy is the founder and Ashleigh qualified as a Stephen joined the Board of Graeme is an experienced Margaret has o
Slide 23: General information
General information ▪ Share Price 64.18p (at 18.11.2024) Major Shareholders ▪ Market AIM % of Issued Share Shareholder Capital ▪ Ticker CLX Thomas (Tommy) Cook (CEO) 19.9% ▪ Market Cap. £56.19m BGF Investment Management Limited 12.0% Scottish Enterprise 9.0% ▪ Ord. shares in issue 87.56m Close Broth
Slide 24: Financial structure
Financial structure • Two revenue streams: Revenue • Bundled hardware & software recognised on delivery • Warranty and software support recognised over life of product • Gross margin: approx. 73-75% net of discounts given to channel partners Gross • Cost of sales: approx. 87-85% is cost of billing f
Slide 25: Product innovation to stimulate growth in FY25
Current innovation programmes Product innovation to Lab sync Neo-S, 800G Telecoms stimulate growth in FY25 Paragon Neo, 400G FlexE Telecoms, China Dual approach – targeting growth in the telecoms market, and in the newer markets of cloud computing and defence. Neo, release 13 Telecoms R&D spend on o
Slide 26: Strong early progress within Cloud Computing
Strong early progress within • SNE-Ignite: Hardware base delivers high accuracy performance e.g. 5G O-RAN. Cloud Computing • SNE-X: High port density applications e.g. 5G Services. • SNE: Lower speed, high complexity applications e.g. SD-WAN, Broadcast, etc. SNE-X, is already finding some promising