An excellent decision by the company, and one I expected, for several reasons, three of which are:
This way, the company will not lose its employees if the desired and promised increase in business activity occurs.
Secondly, the promise of returning to profitable growth does not seem to require permanent staff reductions, which must mean that profitability growth will come from revenue growth.
Thirdly, the company immediately saves on salary costs through temporary layoffs, because in a termination situation, the terminated employee would have had to be paid salary for the notice period. In a temporary layoff, the notice period is 14 days, which might only be possible in a termination situation for employment relationships lasting less than 1 year.
Modulight is part of Finlandâs official quantum technology delegation, which will participate in the Quantum World Congress 2025 event held in Washington D.C. This participation supports Modulightâs strategy to strengthen its position in the quantum technology ecosystem and increase the companyâs international visibility. The event provides an excellent platform for developing new partnerships and customer relationships on a global level.
Here are Siltanenâs pre-earnings comments, as Modulight will publish its Q3 results on Friday.
The companyâs recent quarters have shown improving signs. We expect a clear improvement in Q3 compared to the weak comparison period. The timing of the quantum computing project adds some uncertainty to the Q3 figures. During the quarter, the company conducted change negotiations, the scope of which remained limited compared to initial estimates. Visibility into business development remains low, so further information on future development is welcome.
Here is a company report from Antti after the Q3 results. Modulightâs revenue grew strongly, and its loss decreased from a weak comparison period. In relation to our forecasts, the report was largely in line with expectations, although revenue fell slightly short of our estimate. Modulightâs year 2025 has proceeded better than before, but there are no reliable signs yet of strong continued growth in the future. We are therefore moderately lowering our demanding growth forecasts. Cash burn also increases financing-related risk quarter by quarter and partly weakens the return-risk ratio. Accordingly, we are lowering our target price to 1.3 euros (previously 1.6) and our recommendation to âreduceâ (previously âaddâ) in line with forecast changes.
Modu designs lasers, which is potentially a very lucrative part of the value chain, if it can differentiate itself. However, I donât see any indications of that yet.
Has anyone figured out what is done at Moduâs factory? It advertises itself as âvertically integratedâ but that canât be true. Itâs probably assembly. Surely the critical instruments come from elsewhere. The annual report is coated with ESG nonsense; I simply canât get a clear picture of the matter. Who knows?
Loss 2x revenue. Still, Modu is not an investable company for me.
Has there been any significant or noteworthy development in the IQM and Modulight quantum computing collaboration, or is it just a basic partnership? Iâve seen some articles on the topic.
