MILAN, July 6 (Class Editori) — Seco's turnover increased, ignoring the shortage of components and reporting 52 million euros in sales in the second quarter, more than double compared to last year's growth. The company, which develops and implements cutting-edge technology solutions — from minicomputers to complex systems integrating hardware and software components on an organic level — released an advance quarterly report on Tuesday — the full figures will be released on September 12 —showing that revenues increased by 65%, while there was a 52% like-for-like growth. This performance is related to significant expansion in higher-potential areas including EMEA, Asia-Pacific and the US.
Seco, record 31-million-euro orders in May
In early June, Seco announced record orders in May, with the highest value since its founding exceeding 31 million euros. Intesa Sanpaolo analysts, who reiterate their buy recommendation and 9.4 euros target price on the stock, appreciated "the news" on revenues, which they believe "confirmed the strong acceleration of the business even during the shortage of components and the growing contribution of the IoT AI Clea platform, accounting for 10% of the second quarter revenues.
Seco finalized the closing with Camozzi Digital
"In a market scenario still impacted by component shortages, these results confirmed that our business model has been allowing us to seize the great growth opportunities ahead of us," Massimo Mauri, CEO of the Group, stated and added that the IT company will continue to enrich its offerings with ever-new features, also thanks to its partnership with Camozzi Digital. In fact, today the Group announced the completion of the closing of the transaction with Camozzi Digital, which involves Camozzi Digital's transfer of the business unit including part of the staff — engaged in the development of algorithms and AI applications — and intellectual property assets.
Seco expects additional revenues of 50 million euros for the next three years
At the same time, the agreement calls for the issuance of 7,971,583 new shares, equivalent to 6.73% of Seco's share capital post-capital increase, to the Camozzi Group, which becomes a major shareholder for Seco in the long term. In particular, Seco's offering is enriched with two new SaaS solutions dedicated to the industrial world that will attract additional business opportunities in edge computing and SaaS, enabling customers to transform collected data into added value as well as capital goods manufacturers to propose as-a-Service business models to their customers.
From the sale of these innovative solutions, Seco expects additional SaaS revenues totaling 50 million euros in the three-year period 2023-2025, including 14 million euros as early as 2024. The close collaboration between Seco and Camozzi also resulted in a multi-year industrial agreement under which the latter purchased Clea licenses for 3.6 million euros. Through this transaction, Seco aims to achieve significant cost synergies from the simplification of its corporate structure and maximize the benefits from the integration and sharing of commercial, technological and production knowledge among the different teams operating in the area, now united under a single legal entity.
The stock trades up in Piazza Affari (+1.4% to 6.52 euros for 720 million euros of capitalization) against the market trend, with FTSE MIB at -0.7%.
(Source:Class Editori)
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