(Oslo, Norway – June 8, 2022) Airthings (AIRX), the global leader in air quality monitoring and energy-saving solutions, revises its revenue forecast for the second quarter 2022 to USD 6.4-7.4 million from the previously indicated range of USD 8.0-9.0 million. The downward revision reflects significant inventory adjustments at retailers and online channels.
“We have underestimated inventory changes as supply chains normalize and therefore see that retailers and channel partners are more hesitant to place orders. The top-down message in their organizations is to reduce inventory levels and cut inventory days for consumer electronics products by up to 30-50% in some instances” says CEO Øyvind Birkenes.
Despite the weakened sell-in to retail partners, channel reports indicate that Airthing’s end-user consumer sell-through is holding up better and more in line with original expectations. The company believes the inventory correction is temporary. However, to be prudent the company is taking steps to optimize its cost base and working capital to accelerate the path to profitability and to be prepared if demand is further affected through 2022 on the back of general consumer spending weakness.
While temporary factors are putting downward pressure on topline revenues, the company’s management and Board remain confident in the company’s ability to retain its leadership position in a rapidly growing market in the long-term. As such, the company reaffirms its revenue goal of more than USD 100 million in annual revenues by 2024.