Sensirion ends activities in condition monitoring; focusing on methane emission monitoring as a data-based service business
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Sensirion Holding AG / Key word(s): Strategic Company Decision Media release April 9, 2024, Sensirion Holding AG, 8712 Stäfa, Switzerland Ad hoc announcement pursuant to Art. 53 LR
Sensirion ends activities in condition monitoring; focusing on methane emission monitoring as a data-based service business
As part of a critical review of all innovation projects and to increase the strategic focus of the business, the board of directors of Sensirion Holding has decided, at the request of the management, to give up the activities in condition monitoring of the previously acquired startup AiSight. This will lead to the closure of Sensirion’s Berlin site.
Sensirion acquired the Berlin-based start-up AiSight in September 2021 with the aim of becoming a leading provider of complete solutions in the field of condition monitoring. In the meantime, however, it has become clear that the market for condition monitoring is developing much more slowly and is more fragmented than originally assumed. There are a large number of competitors from whom it will be difficult to differentiate technically. This market structure does not strategically fit Sensirion’s goal of becoming the leading provider in its respective area through innovations. This reassessment, after a thorough examination of various options, has now led to the decision to abandon this area of development. The strategic goal of building a data-based service business alongside the important OEM business remains unchanged. Sensirion will continue to focus on detecting climate-damaging methane leaks in the oil and gas industry. This internal, data-based innovation project is developing very promisingly and is also being positively supported by new environmental regulations in the USA and Europe.
“Innovation is always associated with opportunities, but also with risks. For an innovation-driven company like Sensirion, it is therefore essential to closely monitor innovation projects and make clear decisions when a project no longer meets expectations. Looking back, many innovation projects in recent years have been very successful, such as the entire environmental sensor initiative or the A2L campaign, which is about to be ramped up. Unfortunately, this was not the case with condition monitoring. We regret this very much, but it is also part of an innovation-oriented company,” says CEO Marc von Waldkirch.
The decision to stop activities in condition monitoring entails the closure of the Berlin site. Sensirion deeply regrets the loss of jobs there, but will provide the very well-trained employees who are affected with the best possible support in their search for new, interesting work.
Financially, the decision leads to an extraordinary, non-cash impairment of around CHF 25 million and the elimination of tax loss carryforwards of around CHF 5 million. The impairment is due to the “goodwill recycling” required by Swiss GAAP FER, according to which the value, at the time of acquisition, of goodwill offset against equity must be recycled and written off. The company expects to incur restructuring costs and provisions related to the termination of activities of around CHF 3–5 million in 2024. Adjusted for these one-off special effects resulting from the closure, Sensirion confirms its forecast for the full year 2024 published on March 12, 2024. As a result of this decision, Sensirion expects an improvement in operating cash flow in the low single-digit million CHF range from 2025 onwards. The decision will also have no significant impact on Sensirion’s medium- and long-term growth potential.
Conference on: Sensirion ends activities in condition monitoring
A conference on the press release will take place today, Tuesday, April 9, 2024, 09:00 (UTC+2). The conference will be in English. After a short introduction, there will be an opportunity to ask questions.
You can join the conference using the following link:
Meeting ID: 313 160 716 545 Passcode: bh4o4C
Or call in (audio only) +41 43 210 57 16 Phone Conference ID: 506 288 309#
Financial calendar May 13, 2024 Annual General Meeting 2024 August 21, 2024 Half-year results and interim report 2024
Contact
Investor relations Lars Dünnhaupt Director of Investor Relations Tel.: +41 44 306 40 00 Email: lars.duennhaupt@sensirion.com
About Sensirion Holding AG Sensirion Holding AG (SIX Swiss Exchange: SENS), headquartered in Stäfa, Switzerland, is a leading manufacturer of digital microsensors and systems. The product range includes gas and liquid flow sensors, differential pressure sensors and environmental sensors for the measurement of humidity and temperature, volatile organic compounds (VOC), carbon dioxide (CO2) and particulate matter (PM2.5). An international network with sales offices in China, Europe, Japan, South Korea, Taiwan and the USA supplies international customers with standard and custom sensor system solutions for a vast range of applications. Sensirion sensors can commonly be found in the automotive, medical, industrial and consumer end markets. For further information, visit www.sensirion.com.
End of Inside Information Information and Explanation of the Issuer to this News: Disclaimer
Certain statements in this document are forward-looking statements, including, but not limited to, those using words such as “believe”, “assume”, “expect” and other similar expressions. Such forward-looking statements are based on assumptions and expectations and, by their nature, involve known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. Such factors include, but are not limited to, future global economic conditions, changing market conditions, competition from other companies, the effects and risks of new technologies, the costs of complying with applicable laws, regulations and standards, diverse political, legal, economic and other conditions affecting the markets in which Sensirion operates and other factors beyond the control of Sensirion. In view of these uncertainties, you should not place undue reliance on forward-looking statements. Sensirion disclaims any intention or obligation to update any forward-looking statements or to adapt them to future events or developments.
Sensirion uses certain key figures to measure its performance that are not defined by Swiss GAAP FER. These alternative performance measures may not be comparable to similarly titled measures presented by other companies. Additional information on these key figures can be found at www.sensirion.com/additional-performance-measures.
This document is not an offer to sell, or a solicitation of offers to purchase, any securities. |
| Language: | English |
| Company: | Sensirion Holding AG |
| Laubisrütistrasse 50 | |
| 8712 Stäfa | |
| Switzerland | |
| Phone: | +41 44 306 40 00 |
| Fax: | +41 44 306 49 06 |
| Internet: | www.sensirion.com |
| ISIN: | CH0406705126 |
| Valor: | A2JGBW |
| Listed: | Regulated Unofficial Market in Berlin, Frankfurt, Munich, Stuttgart; SIX Swiss Exchange |
| EQS News ID: | 1875835 |
| End of Announcement | EQS News Service |
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1875835 09-Apr-2024 CET/CEST
