In 2023, Artificial Intelligence will continue to emerge as a prominent force. In January 2024, 2CRSi already announced the success of its AI solutions. Today, the presentation of the strategic plan foresees a gradual balance between its main sources of revenue, enabling much better overall profitability
Strasbourg (France), January 31, 2024 - 2CRSi (ISIN: FR0013341781), an expert in the
design and manufacturing of high-performance, eco-friendly compute servers,
announces a three-year plan aiming for balance between server sales for AI, sales of
complete solutions for data centers, and associated services. This plan focuses on the
American market, representing the majority of 2CRSi's global sales.
For nearly 20 years, 2CRSi has demonstrated its expertise in designing and manufacturing high-performance, eco-friendly compute servers, and its mastery of air or liquid cooling systems. The quality of its products, the relevance of its innovations, and the loyalty of its customers firmly establish the 2CRSi brand in the realm of performance.
Adapting to market changes
The rise of high-performance computing (HPC) and its most recognized branch, Artificial Intelligence (AI), compels manufacturers to develop increasingly powerful, compact, and energy-consuming components. In the quest for the most eco-efficient infrastructure solutions, the contract signed on January 30 proves that 2CRSi possesses all the necessary qualities. To elevate our level of expertise further, it is also imperative to rethink the organizational structure of our group.
Under the leadership of its management, the group will now organize itself around three clearly identified brands.
- 2CRSi and its R&D team retain the ability to design and manufacture custom servers for our historical clientele with clearly calibrated requirements.
- Tranquil IT develops rugged servers and focuses its positioning on Edge Computing.
- Adimes remains the agnostic integrator of solutions from all of our strategic partners but also integrates the production and logistics teams serving the entire group. It ensures testing, after-sales service, and all IT services for a local clientele.
This strategy is clearly aimed at increasing productivity while ensuring cost control for each of the entities.
Furthermore, other negotiations are currently underway for machines dedicated to AI, primarily through 2CRSi Corp, which now represents the majority of the revenue generated by 2CRSi.
The contract signed and announced yesterday with a data center operator demonstrates the success of innovations created by 2CRSi. Last year, 2CRSi already positioned North America as the main driver of our growth. We are there now. For the current fiscal period, and particularly the upcoming semester, 2CRSi has two priority areas:
- Development of sales focusing on servers for artificial intelligence.
- The contract with the data center operator that ensures steady revenues and margins for the next 4 years.
2CRSi is experiencing and will continue to experience robust commercial and industrial development in the coming months and years. For the ongoing fiscal year, which will last for 16 months and close on June 30, 2024, 2CRSi Corporation is projected to have a turnover exceeding $100 million. The low margin on sales of servers specialized in AI is compensated by their significant volume. The goal of returning to profitability is anticipated for this year with an EBITDA forecast of over $3 million, for the sole American subsidiary.
For the following fiscal years, the sale of solutions for data centers, coupled with a growing share of services, will significantly increase the group's results. For 2CRSi Corp, this will translate into an EBITDA exceeding 12% by 2026, with a turnover close to $300 million, of which approximately 60% is already covered by the contract with the American data center operator.
Philippe STEINMETZ, CFO of the 2CRSi group, states, "We will start all processes to ensure that 2CRSi has the financial resources necessary for the success of this contract."
As a reminder, 2CRSi will present its objectives and strategy for the coming months and years today at 11:00 AM. This presentation is exclusively reserved for analysts of the French Society of Financial Analysts; you can find it here.
About 2CRSi
Founded in 2005 in Strasbourg, France, 2CRSi designs, develops, and manufactures high-performance computing servers and innovative solutions for artificial intelligence, high-performance computing (HPC), and data storage. Committed to responsible and sustainable practices, the Group operates across multiple continents and provides highly energy-efficient technology solutions to industries including technology, manufacturing, gaming, scientific research, and data centers. 2CRSi has been listed since June 2018 on the regulated market of Euronext Paris (ISIN code: FR0013341781) and was transferred to Euronext Growth in November 2022.
Contacts
2CRSi Jean-Philippe LLOBERA Director France press@2crsi.com | Seitosei.Actifin Foucauld Charavay Financial Communication foucauld.charavay@seitoseiactifin.com | Seitosei.Actifin Isabelle Dray Financial Press Relations isabelle.dray@seitosei-actifin.com |