Big steps of growth

CoreHW has two main areas of business operation, which both developed in 2023.

Net sales for the microchip design services and IP licensing (DS) increased slightly over the course of the year, even through there were some profitability challenges. That said, corrective measures were successfully carried out in relation to profitability. Next year, business profitability is expected to be better. During the year, new technologies with considerable commercial potential were created. The customer base of the design services consists of a wide range of companies from start-ups to the largest equipment and microchip manufacturers in the world. In 2023, CoreHW expanded its customer base particularly in the United States.

The indoor positioning module and equipment sales business (RTLS) includes the sale of components, modules and devices developed by CoreHW, whereas contract manufacturers produce the components themselves. In 2023, CoreHW was able to start the mass production of its proprietary antenna modules. Late in the year, some main customers were still finalizing their own products, but customers have still made advance orders for more than 2,500 antenna module boards for preproduction series.

Device product development was initiated due to growing demand

In the past financial period, CoreHW also took significant new steps by deciding to get involved in the indoor positioning equipment business. In addition to the design of microchips and antenna modules, the company began to invest more in devices, such as locators and tags, and began their product development. The devices utilize CoreHW’s own microchips, antennas and algorithms, which ensures a unique competitive advantage. The intention is to get the devices into mass production midway through 2024.

A decision was made to begin the new business due to high customer demand.

A decision was made to begin the new business due to high customer demand. The customer base includes equipment manufacturers, indoor positioning system providers and system integrators, for example. The devices can be used to monitor goods in warehouses and factories or ensure patient and staff safety in hospital environments, among other applications. CoreHW’s aim in all of its business operations is to develop microchip technology that enables providing better products to customers.

Significant investment assistance from Panostaja

In 2023, CoreHW faced challenges due to the payment delays of some customers, which has made CoreHW’s own cash management more difficult. There was no credit loss, however, and there has been none over the company’s entire history.

CoreHW has ensured responsibility through measures such as minimizing the environmental impacts of its products and operations and fostering safe and productive jobs in all operating areas. The company also promotes responsibility through its management structure, which regularly reviews thorough internal and third-party inspections. For CoreHW responsibility, honesty and lawfulness come first with regard to partners throughout the entire supply chain.

Panostaja assisted CoreHW substantially during the year, particularly with growing the module and equipment sales business for the next phase. Together with Business Finland, CoreHW invested about four million euros in product development in the spring of 2023. Panostaja’s role was also evident through its activity in the company’s Board of Directors and other expert assistance: for example, Panostaja organized a variety of theme days with portfolio companies, and the peer support also benefited the further development of CoreHW’s business operations.

For CoreHW, 2024 looks to be very positive for both design services and the module and equipment sales business. The company develops its products constantly and believes that it will become even more of a product company by 2025: at that point, a significant portion of the net sales will be generated by indoor positioning and the company’s own products.

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