‘In 2023, u-blox announced measures to turnaround its Connectivity business,’ said the company yesterday in its half year results, ‘as a first step, u-blox stopped the development of Cellular chips. u-blox also set clear targets for the business which included an aggressive growth plan, based on u-blox’s trustworthiness as a Swiss supplier in a multi-polar world. The growth plans targeted cost dilution and becoming the western cost leader in the industry. u-blox will continue to track the execution of this plan closely and will review strategic options for the business by the end of 2024.’
In 2023, u-blox had $641 million revenues for an EBIT of $82 million. In H1 2024, it had revenues of $140 million for an EBIT of -$46 million
In regional markets: H1 2024 Asia-Pac revenue was down 62% y-o-y, EMEA revenue was down 59% and revenues in the Americas were down 71%.
In product sectors: H1 2024 revenue was down 59% y-o-y in automotive, down 68% in 
industrial and down 30% in consumer.
The company is currently executing a $23 million cost-cutting exercise.
“The first half 2024 results came in as expected,” said u-blox CEO Stephan Zizala when announcing the H1 results, “we reached the trough in the first quarter and saw a slight improvement in the second quarter. Despite the weak revenue, we made good progress on winning new businesses (double digit increase in positioning YoY), cost control and cash generation.”
“Going forward, we expect the business to improve further in Q3,” added Zizala, “orders from customers are improving, but at a slower pace than previously expected due to a continued weak industrial market environment and still significant overstock in the value chain. Therefore, we further focus on topics crucial for our mid- and long-term growth strategy while further reducing other costs.”
