Mölndal 2022-05-20

Group financial overview

(Tkr) 2022Firstquarter 2021First quarter 2021Full year 2020Full year
Net sales 27 841 24 262 135 569 77 153
EBITDA 2 629 1 133 4 924 5 630
Operating result 1 721 317 1 537 2 877
Profit after tax 1 296 189 1 000 2 106
Earnings per share after tax (SEK) 0,82 0,12 0,63 1,34
Number of shares 1 576 000 1 576 000 1 576 000 1 576 000

Revenue increased by 15 percent to SEK 27.9 million (SEK 24.2 million), with 100 percent organic growth.

Annual recurring revenue (ARR) from operating activities increased by 6 percent to SEK 6.6 million (SEK 6.2 million).

The gross margin from operating activities increased to 39.9 percent (38.6), which is 1.3 percentage points higher than the same period last year.

EBITDA amounted to SEK 2.6 million (1.1), corresponding to a margin of 9.4 percent (4.6).

During the period, an expense of SEK 151 thousand was incurred related to the development of our software solution linked to AI.
Cash and bank strengthened during the quarter by SEK 8.8 million to SEK 14.7 million.
The Group’s earnings per share for the first quarter of 2022 amounted to SEK 0.82 (0.12).

 

 

Calendar

Interim report Q1 2022 Interim report 2022 Interim report Q3 2022

20 May 2022 19 August 2022 28 October 2022

 

THE PRESIDENT HAS THE FLOOR

It’s time to sum up Q1, 2022. I note that we continue to deliver our solutions and services in a stable manner despite a number of concerns in the global market. Both the war in Ukraine and the remnants of the pandemic have brought component shortages that will affect the entire market for at least the current year and probably also in 2023.

With these conditions, we proudly present a good start to the year. Our turnover for the current period amounts to 27,841 KSEK, which is an increase of 15% compared to the same period last year (24,262 KSEK) and EBITDA amounts to 2,629 KSEK, which is an increase of 132% compared to the same period last year (1,133 KSEK).

Our experience, expertise and knowledge in this field have been recognised in the market. This is helping to keep demand for our services growing – even more than we had anticipated. In February, IDG will recognise us by nominating us for Tech Company of the Year! We also make it to the finals and can humbly say that we are one of ten amazing companies to be counted as the top tech companies at the Tech Awards Sweden. In March, NVIDIA will designate us to NVIDIA’s DGX-Ready Managed Services Program.

CGit will be one of a select few vendors authorized to help enterprises manage distributed NVIDIA DGX (AI) platforms. It’s a real stamp of quality that we will take with us in the further development of CGit. The market for applied AI continues to accelerate in a growing number of industries. The need for access to platforms for, among other things, computing capacity, but also for in-depth expertise in the field and an understanding of how Swedish industry can take the next step in development using new technology, is constantly increasing. In this paradigm shift, we stand ready with knowledge, skills and experience. We also have ready-made concepts for AI as a service and solutions for the entire food chain, “From data to Wisdom”. In the first quarter, January – March 2022, we have a steady growth in annual recurring revenue (ARR) increasing by 6% and we see a very positive trend in our as a service concepts.

Our AI solutions business has a margin of between 15-20%. In this segment, we see increasing competition from large global players who want to “buy into” markets. Compared to these global players, CGit has a unique offering. We are increasing our competitiveness by offering proprietary software such as AiQu and SnapXS and launching our “AI as a service” service. CGit can thus deliver a complete offering – from the data centre, through ML Ops to Applied AI. This is unique in the market and ensures that CGit further advances its already strong position in AI in the market.

We have many trend arrows pointing upwards for us: turnover, profit, contract revenue and number of employees. We grow organically and with responsibility. Slowly, we are getting more and more skilled and talented people in our fields. Today we have 32 employees, an increase of 20% compared to the same period last year (27). At the moment, we are seeing the most growth in the consulting area, where we are primarily hiring systems engineers, devOps and data scientists.

CGit continues to build and develop our knowledge house in AI with deep expertise and experience. We are now an established player in the market and see ourselves as a leader in AI, Deep Learning and its associated services and concepts related to advanced computing and computational capabilities.

The market, technology development and business have seriously embarked on the path to digitalisation and Industry 4.0 and we are taking the baton to be the natural guide into the next paradigm shift. Our sights are set and our focus has increased on continuing to build our knowledge house that provides the market with expertise, experience and services across the entire AI and Deep Learning ecosystem.

Together with Aixia, which is part of the CGit group, we continue to strengthen our unique offering. This is through our advanced scheduler AiQu, which drastically reduces the complexity of scheduling and using powerful computational resources, and SnapXS, our data management software package, which enables the effective use of Big Data in an AI ecosystem. These solutions form the basis of our AI as a service concept. AI Made in Sweden.
//

Mattias Bergkvist, CEO

 

Significant events Q1, 2022

 

2022-01-03
CGit takes new order with existing customer, value SEK 3.8 million.

CGit has been entrusted to deliver the next generation data management solution to an existing customer. The client, active in software development and SaaS services, has decided to invest in new technology to meet the challenging realities of IT. With the new technology that CGit delivers, the customer ensures that the information is always secure and accessible.

2022-01-27
CGit takes new order with one of the universities in Sweden through Aixia.

CGit, through Aixia, has won a tender and is signing a new contract with a university for natural language processing. We will help them develop and implement deep learning models. The project starts immediately and will last for about 6 months.

2022-02-28
Nominated for Tech Company of the Year

CGit has made it to the final of the Tech Company of the Year/Tech Business Award category at the Tech Awards Sweden, organised by TechSverige (formerly IT and Telecom companies) and tech media house IDG.

2022-03-01
CGit takes new order with existing customer, value 4,3 MSEK.

CGit has been entrusted to deliver the expansion of the existing storage solution to ensure the capacity of the existing AI platform. The customer, which operates in the automotive sector, has decided to invest in new technology to meet market requirements and demand. With the new technology delivered by CGit, the customer ensures capacity and availability for further development within the existing AI platform.

2022-03-25
CGit selected for NVIDIA DGX-Ready Managed Services Program

CGit has been selected as an NVIDIA partner for NVIDIA’s DGX-Ready Managed Services Program. CGit will be one of a select group of vendors authorized to help companies manage distributed NVIDIA DGX platforms.

2022-03-30
CGit takes new order with existing customer, value SEK 1.8 million.

CGit has been entrusted to deliver next generation network infrastructure to an existing customer. The customer, which is active in automotive software development, has decided to invest in new technology to meet the security and capacity requirements of its business. With the new technology that CGit delivers, the customer ensures that the information is always secure and accessible.

 

Significant events after the end of the period

2022-04-28
CGit takes new order with new customer, value 1,2 MSEK.

CGit has been entrusted to deliver next generation network infrastructure to a new customer. The customer is a Swedish media company, which is active in streaming and TV, The customer has decided to invest in new technology to meet the requirements of the business and security and capacity. With the new technology that CGit delivers, the customer ensures that the information is always secure and available with high capacity.

2022-05-04
CGit takes new order with new customer, value 3,2 MSEK.

CGit has been entrusted to deliver the next generation network infrastructure to an existing customer. The customer is active in the AI/Automotive segment. The customer has decided to invest in new technology to meet the security, capacity and high availability requirements of the business. With the new technology that CGit delivers, the customer ensures that the information is always secure and available with high capacity.

2022-05-06
CGit takes new order with existing customer, value 2 MSEK.

CGit has been entrusted to deliver next generation IT infrastructure, including both network and storage architecture, to an existing customer. The client is active in software development. The customer has decided to invest in new technology to meet market and business requirements for security, capacity and high availability. With the new technology delivered by CGit, based on next generation state-of-the-art architecture, CGit ensures that customer information is always secure and available with high capacity.

2022-05-11
CGit takes new order with existing customer, value SEK 1.6 million.

CGit has been entrusted to deliver next generation network infrastructure to an existing customer. The customer, which operates in the global telecommunications market, has decided to invest in new technology to meet the requirements of its business and security and capacity. With the new technology that CGit delivers, the customer ensures that the information is always secure and accessible.

SWEDISH

CGit_Interim_Report_Q1_2022_FINAL[50]

ENGLISH

Interim_Report_Q1_CGit_Holding_AB

//

For more information, please contact the Company at:
CEO Mattias Bergkvist
Telephone: 031-762 02 40
info@cgit.se
www.cgit.se

This information is information that CGit Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 20-22-05-20.

CGit is an IT company based in Mölndal and is part of a group where the wholly owned subsidiary CGit since 2007 has been active in the construction and development of IT infrastructure, including. AI/Deep Learning platforms data centre, security, management, hosting, networking & communications and backup/DR. The company provides services in three business areas; IT operations, IT consultants and IT products, and currently has around 120 customers across several different industries.