Asetek Shares Drop as Company Halts Revenue and Profit Guidance for 2024

/ 1 month ago
Asetek Shares Drop as Company Halts Revenue and Profit Guidance for 2024

Asetek’s stock plummeted over 40% on June 12, 2024, after the company announced it would suspend its profitability and revenue guidance for 2024. This decision comes as a result of updated forecasts from major OEM customers indicating that the anticipated demand for Asetek’s liquid cooling products in the second half of 2024 might not be realized.

Operational and Market Challenges

Asetek Shares Drop as Company Halts Revenue and Profit Guidance for 2024

Asetek has acknowledged the significant decline in Group revenue and profitability, contrasting with the guidance issued earlier in March 2024. The company expects this negative trend to possibly extend into 2025. The management team and board are currently evaluating both the short-term and long-term impacts of this uncertain market situation.

The company plans to develop a strategy to address these challenges and will communicate this plan as soon as it is finalized. Asetek, known for pioneering all-in-one, closed-loop liquid CPU coolers, faces stiff competition in both the gaming PC segment and the server CPU cooling market.

SimSports Growth Maintained

Despite the setbacks in the liquid cooling segment, Asetek’s SimSports division continues to perform well. The company maintains its forecast for a 40-60% revenue growth in SimSports for 2024 compared to 2023.

Asetek remains committed to navigating these challenges and aims to resume financial guidance as soon as possible.

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