Seco's first-quarter profits are under pressure, with rising costs dragging the stock down 5%

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Investing.com – Italy’s embedded computing company Seco (transliteration, Seco) announced first-quarter net sales of 48.5 million euros, up 3% year-over-year, with growth driven by the industrial vertical sector and the gradual recovery of customer orders in the Asia-Pacific, Europe, Middle East, and Africa regions.

Despite revenue growth, due to rising operating costs and high memory prices, the company’s adjusted EBITDA and net profit both declined. During Monday’s trading, Seco’s stock price fell by 5%.

Recurring revenue from Seco’s Clea platform increased by 20% year-over-year, but overall Clea revenue contracted as some non-recurring income shifted into deployment phases.

The company expects second-quarter revenue to exceed 50 million euros, supported by market demand for edge AI and Clea software. Seco also stated that its strong fundamentals and ongoing innovation efforts will provide solid support for its business outlook through 2026.

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