NeXR Technologies SE sales activities restricted by COVID-19 in first half of 2020 – B2Bvirtual reality application NeXR Seminar is the future of learning
Berlin, 30 September 2020
NeXR Technologies SE (XETRA: 99SC) today published its financial report for the first half-year2020. Massive restrictions in public life and wide contact restrictions as a result of the coronavirus pandemic had a visible impact on the sales activities of the expert for virtual reality (VR) and augmented reality (AR) applications. Although the coronavirus pandemic slowed down business development, the Company purposefully used the necessary adjustments to the new working conditions for the protection of its employees to continue working on the implementation of its corporate strategy.
Impacted by the effects of the coronavirus pandemic, revenues decreased to EUR 0.2 million in the first half of 2020 after EUR 0.5 million in the previous year. Earnings before interest, taxes, depreciation and a mortization (EBITDA) increased to EUR -4.5 million compared to EUR -4.7million in the previous year as a result of the measures taken to increase efficiency. As part of the mentioned measures, the Company flexibly aligned its workforce to the requirements of the market from 66 employees in the same period of the previous year to 55 employees in the first half of 2020. Below the line, the net loss for the period under review increased to EUR 7.0 million from EUR 6.5 million in the first half of 2019.
Measures to contain the coronavirus rapidly changed the way people communicate, work and learn. The result was a dynamic digitalization boost that often caught companies unprepared.NeXR adapted its product strategy flexibly to the new market requirements. In just five months,”NeXR Seminar” was developed – a powerful VR environment that already anticipated the future of learning, meetings, seminars or conferences and made it applicable for companies. NeXR Seminar expands the product and represents the next evolutionary step in the Company’s development by combining for the first time within the value chain the business units of 3D scanner systems, motion capture and VR experiences in a future-oriented product.
However, sales activities for the INSTAGRAPH Fusion III body scanner presented in January 2020at the International Consumer Electronics Show (CES) in Las Vegas were slowed down by the lockdown that followed shortly after. Following the end of the lockdown, intensified talks with potential partners in the target segment of fashion and fitness are giving rise to confidence for the coming months.
The Management of NeXR Technologies SE considers the capital increase carried out in Augustafter the end of the reporting period, despite the fact that the volume was not placed in full, as a demonstration of confidence in the promising prospects of the Company’s further development.Besides the main shareholder Hevella Capital, shareholders from the free float also subscribed toal most 800,000 shares. The Company received gross proceeds of approximately EUR 3.8 million for further product development in the areas of virtual reality and 3D scanner systems and their market launch. With financing commitments of EUR 7 million, NeXR Technologies SE is sufficiently funded for the coming 2021 fiscal year.
The ongoing uncertainties caused by the coronavirus pandemic and the resulting restrictions make it difficult to provide a reliable forecast for the second half of 2020. At the same time, canceled trade fairs and missed customer appointments due to coronavirus continue to affect sales activities. The Management of NeXR Technologies SE does not expect a recovery in the investment activities of target customers until the fourth quarter at the earliest and therefore estimates revenues of around EUR 0.3 million (previously: EUR 0.5 million) and an anticipated net loss of around EUR 13.5 million (previously: EUR 13 million) for fiscal year 2020.
he English version of the half-year report 2020 of NeXR Technologies SE will be available for download in the course of the day at https://www.nexr-technologies.com/publications/.
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