Option reports first half year 2016 results

Publication date : 01/09/2016

Option N.V. (EURONEXT Brussels: OPTI; OTC: OPNVY), the company connecting Things to the Cloud, today announced its results for the first half fiscal year ended June 30 2016.

Jan Callewaert, Option’s Executive Chairman, commented on the results:

“Since the Board entrusted me with the Management of the Company following the departure of the CEO, I have focused on redirecting the CloudGate go-to-market from an indirect sales to a direct sales model.
Directly understanding the needs from end customers looking for IoT solutions enabled by the complete CloudGate solution is proving successful. We are experiencing a business shift where we see the majority of sales coming from direct relationships with industrial corporations and manufacturers. I am happy to announce that the Company won business in the field of water pump monitoring, advanced energy monitoring, water consumption measurement in apartment buildings, frozen pipes monitoring in public buildings and connected stores. Option’s daughter Innolumis, operating in the LED public lighting business, since its acquisition, is already at a break-even level and is showing promising opportunities in expanding its sales in Europe and beyond.  With the demand of cities and municipalities for energy-efficient street lighting, coupled with smart technology, we are currently in discussions to start piloting several city projects. We have passed the tipping point and in today’s outlook, we are confident to see Option’s overall revenues nearly double for 2016 compared to 2015. We are focusing on sales.” 

Business Update

In the first half of the year Option still faced postponed sales. However, this trend is changing as after a change in management the focus shifted towards a direct sales model and the Company has now sufficient signed sales orders to be confident to realize increased sales in the second half of the year.  Throughout the first half of 2016 the Company continued to embark on commercializing end-to-end solutions in different business segments. On the financial level, the Company has limited means, but will continue its efforts to search and find funding and restructure its balance sheet in order to facilitate its commercial projects and activities. 

Going concern         

Given the continued cash drain during the first half of 2016, the Board continues to work on project and financial funding, and further cost alignment. On the day of the publication of this report, the Company has very limited financial means. However, the most recent sales forecasts, based on concrete signed orders, indicate a growth compared to actual realized revenues in the first half of the year. On that basis, there is sufficient confidence that the required additional funding will be found. Thus, The company is taking initiatives to strengthen the group’s financial position in the short-term, in addition to the financial commitments until the end of October 2016 as set out in the annual report. The Company continues the negotiations on the balance sheet restructuring as also the search for new investors at the level of the group or its subsidiaries.

You can find the full press release and the Interim report via http://www.option.com

For further information please contact:

• Jan Callewaert – Executive Chairman
• Jan Luyckx – CFO
  Gaston Geenslaan 14
  B-3001 Leuven, Belgium
  TEL: +32 (0) 16 31 74 11
  FAX: +32 (0) 16 31 74 90

E-mail: investor@option.com