NextDecade(US:NEXT)2025-08-20 07:30Financial Data and Key Metrics Changes - Reported revenues were negative $2.2 million, while adjusted revenues were $4.3 million, with a difference of $6.5 million due to adjustments related to difficulties in China [13] - Adjusted gross margin was 39%, significantly lower than the previous year's high of 57% due to product mix [7][13] - Adjusted EBITDA was negative $14.2 million compared to $6.7 million in Q2 2024, primarily due to revenue adjustments and lower product shipments [14] - Cash at the end of the quarter was $22.1 million, down from $39.9 million at the end of Q1 2025 [14] Business Line Data and Key Metrics Changes - The company launched two new products: NeXT Granite (Fab 30 sized sensor) and NeXT Basalt L1 Slim, targeting different market segments [7][9] - The company achieved 12 design wins in the first half of the year, meeting its target for the entire year [10] - The restructuring of the China business has led to tighter controls and improved financial credit checks [5] Market Data and Key Metrics Changes - Sales in India were significantly impacted due to a market pause from November to mid-April, leading to lower sales in Q2 [6] - The company is expecting significant growth in Q3 and Q4, particularly in the Indian market [6] Company Strategy and Development Direction - The company is focusing on expanding its product portfolio with higher security requirements, particularly in government ID and high-end fingerprint sensors [31][46] - Plans to consolidate the market and explore opportunities in the IAM business and government ID fingerprint sensor market [46][47] - The company aims to achieve close to NOK 50 million in quarterly revenues by 2026, with a focus on recurring revenues and design wins [48][50] Management's Comments on Operating Environment and Future Outlook - Management acknowledged short-term challenges but expressed confidence in the sales pipeline and expected improvements in cash flow [52] - The company is optimistic about becoming cash positive in Q4 and anticipates a strong second half of the year [45][51] Other Important Information - The company has secured a mass production order for the Fab 30 product, confirming market demand and product value proposition [37][39] - A potential private placement of SEK 15 million to 20 million is being discussed to address short-term liquidity needs [11] Q&A Session Summary Question: When will the first Fab 30 order be delivered? - The first mass production order is expected to be completed by Q4 this year [56] Question: Are there any other deliveries expected before Q4? - There are indications that deliveries could occur even earlier with other partners [57]