Story
Seco Projects 25% Q3 Revenue Growth to €60 Million on Margin Strength
Summary
Italian edge AI firm Seco forecasts third-quarter revenue of approximately €60 million, a 25% year-over-year increase. The guidance follows a first-half report showing improved gross margins and growth in its recurring revenue business.
Italian edge AI provider Seco announced it expects third-quarter revenue to reach approximately €60 million, representing a significant 25% increase compared to the same period last year. The strong forecast follows a first-half performance marked by improved profitability and expansion in key business segments.
First-Half Performance
In its preliminary first-half results, Seco reported a slight year-over-year increase in net sales. The company highlighted a notable improvement in its gross margin, which expanded to 54.0% from 53.4% in the prior-year period.
According to the announcement, this margin enhancement reflects the company's resilience to rising memory prices. Seco stated it successfully offset these cost pressures through strategic supply chain actions and price increases, demonstrating operational efficiency.
Key Growth Drivers
AdSeco's top-line growth was primarily fueled by its edge computing division and its Clea software-as-a-service (SaaS) platform. The Clea business, a source of recurring revenue, showed strong momentum in the first half of the year.
Key performance indicators for the Clea platform included:
- First-half revenue generation of €7.4 million.
- A 12% year-over-year increase in recurring revenues.
The company stated it anticipates a "continued strong progression in top-line revenue," supported by the performance of these core areas.
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