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Asetek Achieves Market Triumph with Record-Setting Revenue in Advanced Cooling Industry


Leo Gonzalez

March 8, 2024 - 07:54 am


Asetek's Year of Triumph: Record Revenue and Market Expansion

AALBORG, Denmark, March 8, 2024 /PRNewswire/ - Asetek, a renowned leader in the field of advanced cooling solutions for the computing industry, has proudly announced its financial results for the fourth quarter and the entirety of 2023. These figures highlight a significant surge in the company's growth trajectory, with record-setting revenue earnings and a strategic expansion into the Liquid Cooling and SimSports sectors.

Financial Milestones of 2023: A Glimpse into Asetek's Success

Powerful Fourth Quarter Performance

To commence, Asetek's fourth-quarter revenue reached an impressive $16.6 million, showcasing a remarkable 75% increase in comparison to the same quarter the previous year. The company's gross margin saw a considerable improvement to 47%, up from 41% in Q4 of 2022. Their ability to adjust earnings before interest, taxes, depreciation, and amortization (EBITDA) has also turned a new leaf; what was once a $0.6 million loss in Q4 of 2022 is now a $2.2 million victory in the same quarter of 2023. Moreover, the revenue from SimSports products also climbed to new heights, touching $2.2 million in the fourth quarter, representing an exponential growth from the mere $0.2 million in Q4 2022.

Annual Achievements: Leaping Forward

Yearly achievements further exhibit the company's surging performance, with total revenues climbing to a staggering $76.3 million – a 51% increase from the preceding year, marking the second-highest-ever full-year revenue. The adjusted full-year EBITDA swung from a $0.8 million loss in 2022 to a robust $15.9 million profit. Additionally, Asetek strategically expanded its addressable market by introducing new Liquid Cooling solutions designed for the less expensive end of the premium segment. For 2024, the company has anchored its revenue growth expectations to range between a decrease of 5% and an increase of 5%, relative to 2023. Simultaneously, the adjusted EBITDA for the forthcoming year is projected to lie between 12% to 17% of total revenue.

CEO's Reflections on a Pivotal Year

Reflecting on the remarkable year, CEO André Sloth Eriksen stated, "The year 2023 represented a significant rebound for our Liquid Cooling initiatives and witnessed the success of our expanded SimSports product range, much celebrated within the sim racing community. I am extremely proud of our team's efforts that have resulted in our second-best year in terms of revenue and profit, fueled by robust demand for our offerings." Despite challenges, like the low near-term visibility of revenue, Eriksen asserts that the company remains optimistic about its market potential. Asetek is strategically realigning its focus to deliver on 2024's goals.

2023's Operational and Financial Indicators

The operational income for Q4 stood at $1.0 million with adjusted operational income reaching $2.2 million, juxtaposed with a Q4 2022 operating loss of $1.9 million and a negative adjusted EBITDA of $0.6 million. Moreover, while operating expenses increased slightly to $6.7 million due to product and supply chain developments, the full-year operating expenses decreased by 3%, landing at $25.3 million. These figures demonstrate strategic financial resource allocations and a dedicated focus on innovation and development within Asetek.

Investments and Achievements: Building the Future

In 2023, Asetek took a bold step investing $24.9 million in its infrastructural capabilities, which includes their new headquarters and $2.6 million into the forging of new product developments. The firm astutely managed its finances by lowering the construction credit line for its headquarters and development center by $2.9 million. Assets weighed in at $102.7 million by the year's end, a notable increase from $78.6 million in 2022. Equity also rose from $42.7 million to $66.1 million. In May 2023, Asetek's financing strategy bore fruit as the company successfully raised $16.1 million through the issuance of 71.2 million new common shares.

Reshaping the Market: Product Diversification and Innovation

During Q4, Asetek shipped an impressive 244 thousand sealed loop coolers, revealing a marked increase from the 157 thousand units in the previous year's same quarter. Twenty fresh products, including twelve liquid coolers and eight SimSports items, began their journey to consumers. The upcoming first quarter of 2024 is ripe with the promise of ten further liquid cooling products and an array of new SimSports accessories slated for release.

Boosting its OEM partnerships, Asetek collaborates with ASUS to launch cutting-edge CPU coolers featuring its Gen7v2 liquid cooling technology, empowering enthusiasts to reach new heights in CPU performance.

A Strategy for Value: Addressing a Broader Market

Responding to the rising demand in value-oriented markets like China, Asetek is shifting gears to deliver top-tier products at a more approachable price point. This strategic move expands their market reach without compromising the esteemed quality associated with the Asetek brand. While the gross margins on these value offerings may fall below historical averages, these products still promise strong EBITDA margins.

Looking Ahead: Asetek's 2024 Expectations amid Economic Uncertainty

Navigating the Economic Landscape

As 2024 unfolds, early indications promise an overall economic improvement, although this recovery is uneven across regions. Geopolitical tensions remain, injecting a note of unpredictability into the markets and affecting consumer spending behavior. Against this backdrop, Asetek's visibility into future revenues stands at a low, influenced partly by major OEM customers' inventory build-up from late 2023, which may blunt demand into the early half of the new year. Nevertheless, a normalization in inventory levels and customer demand is anticipated in the latter half of 2024.

Projected Financial Outlook

Considering these complex factors, Asetek anticipates a fluid revenue growth in 2024, projecting a -5% to 5% range compared to 2023. Dissecting the expectations further, the Liquid Cooling segment may witness a -10% to 0% revenue trajectory, while the SimSports segment might enjoy a more vigorous growth ranging from 40% to 60% over the previous year. The company also forecasts an adjusted EBITDA margin for the entire group to cruise between 12% and 17% of its revenue.

Connecting with Stakeholders: Asetek's Conference Call and Webcast

Insights into the Earnings Report

Asetek cordially invites stakeholders including investors, analysts, and the media to attend a presentation hosted by CEO André Sloth Eriksen and CFO Peter Dam Madsen. The duo will delve into the company's financial results, providing a platform for an extensive discussion which will encompass a question and answer segment. The event is scheduled to commence at 10:30 CET and is expected to conclude within an hour including the Q&A session.

Engaging Through Multiple Channels

Participants can engage with the presentation through a live webcast, which features both audio and slides, or via an audio-only conference call. The webcast can be accessed at, and conference call information is readily available for various geographic locations. Those intending to join through phone are advised to dial in several minutes before the scheduled time to ensure seamless participation.

Conference Call Details:

  • Denmark: +45 32 74 07 10
  • USA: +1 646 307 1963
  • Germany: +49 6958 996 4217
  • Norway: +47 57 98 94 30
  • UK: +44 20 3481 4247

Conference ID: 5624197

The recorded version of the presentation, along with the fourth-quarter and full-year 2023 earnings release, will be accessible on and post-presentation. A recorded session is anticipated to be available approximately two hours after the live event concludes.

A Closer Look at Asetek

Asetek (ASTK), an epitome of mechatronic innovation, is a Danish success story that evolved from a small garage to a publicly traded company. Since its inception in 2000, Asetek has solidified its reputation as the top OEM developer and manufacturer of all-in-one liquid coolers for leading PC and gaming brands. Introducing its SimSports gaming line in 2021, the company has consistently pioneered the gaming landscape. Headquartered in Denmark, Asetek's global footprint extends across China, Taiwan, and the United States.

Full Disclosure and Transparency

Asetek has fulfilled its duty of complete disclosure in alignment with Section 5-12 of the Norwegian Securities Trading Act. This commitment to transparency underscores the company's ethos and dedication towards integrity in every facet of their operations.

The information shared in this announcement aligns with Cision’s accessible resources at For further exploration of Asetek's Q4 2023 reports and the corresponding growth trajectory, interested individuals are encouraged to inspect and download the files made available:

For Inquiries or Further Information:

  • CFO Peter Dam Madsen, +45 2080 7200, email: [protected email address].
  • Head of Investor Relations, Per-Anders Nyman, +45 2566 6869, email: [protected email address].

In conclusion, Asetek's 2023 journey advocates a narrative of resilience, innovation, and strategic agility. As the company embraces the challenges and prospects of 2024, its steadfast approach and anticipatory business strategies signify a beacon for continued growth and shareholder value in the years ahead.