U-blox Faces Major Revenue Decline in Q1 2024

u-blox AG, the Swiss provider of positioning and wireless communication technologies, reported a significant drop in revenue for the first quarter of 2024. The revenue for this period was CHF 56.0 million, a stark contrast to CHF 165.8 million in the first quarter of 2023, marking a decline of 66.2% in constant exchange rates. This decline was consistent across all regions and particularly significant in the connectivity business.

The company posted an EBIT of CHF -20.4 million, down from CHF 28.1 million a year ago, and an adjusted EBIT of CHF -18.6 million. Both figures reflect a substantial decrease in profitability, attributable to low operational leverage following the revenue drop. Despite this, CEO Stephan Zizala anticipates a gradual recovery throughout the year as inventories are expected to normalize.

u-blox remains optimistic about future improvements and highlights a positive outlook for growth driven by increasing demands in sectors like automated driving and healthcare. The company expects Q2 2024 revenues to be between CHF 55 million and CHF 65 million with an adjusted EBIT margin ranging from -35% to -25%.