Enea Informs About Increased Financial Significance of Dispute With Larger Customer
STOCKHOLM, May 2, 2017 /PRNewswire/ -- As previously communicated, Enea has initiated arbitration proceedings with one of the company's largest customers regarding how to interpret the provisions on royalty calculation in the contract governing the use of Enea's OSE operating system in the customer's telecommunications equipment. As further announced, the dispute has subsequently extended to now also include a one-sided price reduction that the customer is introducing.
Based on the latest royalty report from the customer, the financial impact of the unilaterally introduced price cut is now growing. The discrepancy between agreed price and the lower price the customer unilaterally is applying, was previously of limited financial significance but now represents a negative difference of more than 6 MSEK in royalty for the second quarter of 2017 and is estimated to potentially reach between 20 and 30 MSEK for the full year of 2017.
Enea invoices the customer according to the existing agreement and through dialogue and customary reminders urges the customer to pay accordingly. Enea expects the customer to pay in accordance with the agreement, but Enea will otherwise have to initiate arbitration proceedings also for this part of the dispute. This will take time and incur costs.
This information is information that Enea AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 10:20 a.m. CET on May 2, 2017.
For more information visit www.enea.com/investors or contact:
Anders Lidbeck
President & CEO
E-mail: anders.lidbeck@enea.com
Julia Steffensen
Investor Relations
Phone: +46-70-971-03-33
E-mail: julia.steffensen@enea.com
About Enea
Enea is a global supplier of network software platforms and world class services, with a vision of helping customers develop amazing functions in a connected society. We are committed to working together with customers and leading hardware vendors as a key contributor in the open source community, developing and hardening optimal software solutions. Every day, more than three billion people around the globe rely on our technologies in a wide range of applications in multiple verticals – from Telecom and Automotive, to Medical and Avionics. We have offices in Europe, North America and Asia, and are listed on Nasdaq Stockholm. Discover more at www.enea.com and start a conversation at info@enea.com.
Enea®, Enea OSE®, Netbricks®, Polyhedra®, Zealcore®, Enea® Element, Enea® Optima, Enea® LINX, Enea® Accelerator, Enea® dSPEED Platform and COSNOS® are registered trademarks of Enea AB and its subsidiaries. Enea OSE®ck, Enea OSE® Epsilon, Enea® Optima Log Analyzer, Enea® Black Box Recorder, Polyhedra® Lite, Enea® System Manager, Enea® ElementCenter NMS, Enea® On-device Management and Embedded for LeadersTM are unregistered trademarks of Enea AB or its subsidiaries. Any other company, product or service names mentioned above are the registered or unregistered trademarks of their respective owner. © Enea AB 2017.
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