HPC YEARBOOK 2021/22 News


A round-up of some of the most important news announcements of the past 12 months


Asetek pulls out of the HPC market I


n a press release update on the company’s full-year 2021 expectations, Asetek noted that disruptions caused by new and ongoing Covid-19 shut-downs in China, disrupting Asetek’supply chain, have caused the company to exit the high performance computing (HPC) market. The update also reflects wider supply chain challenges and non- recurring costs related to a sharpening of Asetek’s data centre segment to improve profitability. Andre Sloth Eriksen, the CEO


of Asetek said: ‘The shut-downs, component shortages and shipping bottlenecks are challenging the supply chains of both Asetek and our customers. This impacts our revenue and cost expectations. We have highlighted the risk related to Covid-19 and component shortages over time. As the situation now unfolds, we will adapt to the current environment, reduce spending and focus on delivering on the strong underlying demand we have experienced over time.’ Asetek’s operations have been


affected by shut down in the Tongan District in China, hindering sub- suppliers deliveries of components, and a challenging Covid-19 situation in Xiamen, hindering deliveries of components to Asetek’s contract manufacturers and consequently their shipments to Asetek. In addition to the new Covid-19


effects in China, continued components shortages and increasing logistics costs are affecting both Asetek and the company’s customers and partners, leading to increased uncertainty related to sales and costs for the remainder of the year. ‘Asetek has a clear strategy of


profitable growth. Since our HPC area continues to burn cash and has


32


not delivered meaningful returns, we decided to exit HPC. We maintain our long-term dedication and exposure to sustainable data centres with a focused approach while improving our shorter- term profitability. The time was right to make a decision, since we were facing a milestone with an external HPC partner involving binding commitments’ Eriksen adds.


Coinciding with the Covid-19


effects in China and the wider supply chain challenges, Asetek has decided to sharpen its data centre business segment. The decision was taken to


Asetek’s operations have been affected by shut down in the Tongan District in China, hindering sub-suppliers deliveries of components, and a challenging Covid-19 situation in Xiamen “


“


protect Asetek’s future profitability from increasing HPC investment needs, lacking revenue from the HPC area, and an upcoming milestone with an external HPC partner involving binding commitments. Asetek will prioritise the general


data centre market and support legislation increasing adoption of the company’s sustainable data centre solutions, capitalising on the company’s liquid cooling technology and long-term investments in the data centre business segment. On August 12, Asetek announced


its second-quarter report with full-year 2021 expectations including revenue growth of 20 to 30 per cent compared with 2020, and an operating income of $8-12 million. Based on the current situation and


outlook, Asetek’s updated full-year 2021expectations are: • Group revenue growth of 10 to 20 per cent compared with 2020; and


• Operating income between $0 and 2 million, compared with $11 million in 2020.


The reduced operating income


expectation is explained by reduced sales due to China lock-downs, increased shipping and component costs, as well as non-recurring costs of $2.5 million associated with the sharpening of the data centre segment by exiting the HPC niche. Asetek was due to report its third-quarter results at the end of October. The company will provide further


updates on its business and outlook via interim reporting and other disclosure when relevant.


www.scientific-computing.com


Gorodenkoff/shutterstock


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42