Advent Technologies Update on Streamlining Operations
Advent Technologies announced updates on its operational streamlining plan aimed at reducing costs and improving efficiency post acquisitions. The company plans to reduce operational and facility expenses to below $24 million in 2024, a nearly 50% reduction from the previous year, and achieve combined revenue of $13 million. Advent also aims to break even by the end of 2025. The company will consolidate its operations by eliminating the Boston and Germany facilities and reducing operations in the Philippines, although its growth strategy remains unaffected. Government funding of $42 million is anticipated for R&D and manufacturing programs. Advent plans to publish its 2023 financial results in July 2024.
- Operational and facility expenses to be reduced to below $24 million in 2024, almost a 50% reduction from the previous year.
- Combined revenue of $13 million in 2024.
- Government funding for 22 R&D and manufacturing programs amounting to $42 million.
- Company expects to achieve break-even by the end of 2025.
- New purchase orders for Serene systems.
- Elimination of Boston and Germany facilities.
- Significant reduction of operations in the Philippines.
Insights
Advent Technologies' operational streamlining presents a significant cost reduction initiative aimed at ensuring financial stability and long-term profitability. The closure of facilities in Boston and Germany, along with reduced operations in the Philippines, signals a strong commitment to achieving a leaner cost structure. Reducing total costs to below
Advent's expected government funding of
The company’s ability to generate a combined income of
For retail investors, Advent's strategic moves to curb expenses while maintaining growth signals a potential upside in the long term. However, the short-term impact might include transitional costs and risks associated with the consolidation process.
Advent Technologies' decision to close and consolidate several facilities is a strategic realignment aimed at enhancing operational efficiency. By focusing on core locations, particularly in the USA, the company aims to streamline operations and reduce overhead expenses. This move is in line with broader industry trends where companies are centralizing operations to optimize resource allocation and improve agility.
The operational consolidation is likely to contribute positively to Advent's agility and responsiveness to market demands. The announced closures might initially seem disruptive, but they will allow the company to better manage its global footprint, likely leading to improved service delivery to key clients like Airbus, Hyundai and Siemens Energy.
Advent's continued commitment to innovation in fuel cell and hydrogen technology, despite cost-cutting measures, is vital for maintaining competitive advantage. Retail investors should consider the company's ability to adapt and thrive in a rapidly evolving market. The strategic emphasis on achieving break-even by 2025 suggests a balanced focus on both immediate cost management and long-term growth potential.
As part of the operational plan announced earlier this year in the investor presentation (https://ir.advent.energy/notices-and-presentations/default.aspx), Advent intends to:
-
reduce operational and facility expenses for 2024, with a target of total costs below
$24 million 50% reduction from the previous year. -
achieve a combined income of
$13m $11m $2m - achieve break-even by the end of 2025.
Following the acquisitions of Serenergy and Ultracell and the organic expansion, Advent had seven facilities around the world. In 2024, the Company decided to eliminate the
Advent has taken several steps to successfully reduce its cash burn. The Company expects government funding for 22 R&D and manufacturing programs, amounting to
Dr. Vasilis Gregoriou, Chairman and CEO of Advent, commented: "For the last six months, we have made a great effort to significantly reduce costs and streamline our strategy, aiming for a pragmatic yet ambitious outcome. We have delivered on our contractual agreements and milestones with Airbus, Hyundai, US Army, and Siemens Energy so far, increased our pipeline, and received new purchase orders for Serene systems. We are relocating our headquarters to
Furthermore, Advent Technologies anticipates publishing its financial results for 2023 within July 2024.
About Advent Technologies Holdings, Inc
Advent Technologies Holdings, Inc. is a
Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements. These forward-looking statements generally can be identified by the use of words such as “anticipate,” “expect,” “plan,” “could,” “may,” “will,” “believe,” “estimate,” “forecast,” “goal,” “project,” and other words of similar meaning. Each forward-looking statement contained in this press release is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others, the Company’s ability to maintain the listing of the Company’s common stock on Nasdaq; future financial performance; public securities’ potential liquidity and trading; impact from the outcome of any known and unknown litigation; ability to forecast and maintain an adequate rate of revenue growth and appropriately plan its expenses; expectations regarding future expenditures; future mix of revenue and effect on gross margins; attraction and retention of qualified directors, officers, employees and key personnel; ability to compete effectively in a competitive industry; ability to protect and enhance Advent’s corporate reputation and brand; expectations concerning its relationships and actions with technology partners and other third parties; impact from future regulatory, judicial and legislative changes to the industry; ability to locate and acquire complementary technologies or services and integrate those into the Company’s business; future arrangements with, or investments in, other entities or associations; and intense competition and competitive pressure from other companies worldwide in the industries in which the Company will operate; and the risks identified under the heading “Risk Factors” in Advent’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 31, 2023, as well as the other information filed with the SEC. Investors are cautioned not to place considerable reliance on the forward-looking statements contained in this press release. You are encouraged to read Advent’s filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document, and the Company undertakes no obligation to update or revise any of these statements. Advent’s business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240711417394/en/
Advent Technologies Holdings, Inc.
Michael Trontzos
press@advent.energy
Source: Advent Technologies Inc.
FAQ
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