U-blox said at its annual Capital Markets Day that activity is increasing across its segments following the downturn experienced during the second and third quarters due to the strain caused by the coronavirus pandemic. Because the general outlook remains uncertain however amid continuing lockdowns, the company has decided to start new cost saving and efficiency measures, with the goal of saving CHF 15 million per year. U-blox said it will check R&D priorities and expenditures carefully to balance innovation with free cash flow objectives. Looking ahead, the company still does not want to provide any guidance, now because of the recent takeover bid for Telit. It hopes to give a forecast and update soon.
U-blox said business activities in the second half rebounded more strongly in APAC, where economies reopened earlier compared to other regions. The automotive sector, severely impacted by global production and business shutdowns, has also shown resurgent activity and has been a key driver in the company’s recent performance rebound. Monthly bookings of purchase orders have increased strongly each sequential month since May.
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