Ekinops Q1 2022: strong demand and +20% revenue growth

PARIS, April 12, 2022 /PRNewswire/ -- Ekinops (Euronext Paris - FR0011466069 – EKI), a leading supplier of telecommunications solutions for telecom operators and businesses, has published its consolidated revenue for the first quarter of FY 2022 (January 1 - March 31, 2022).

SixSq has been consolidated since November 1, 2021.

Robust growth of almost +20% in Q1 2022

Ekinops reported Q1 2022 consolidated revenue of €27.8m, up by a very substantial +20% vs. Q1 2021 (+19% at constant scope).

At constant scope and exchange rates, revenue is up +16%, in line with the 2022 annual target for organic growth at least equal to that of 2021 (+12%).

All business lines show growth, with software and services up +64%

All the Group's businesses contributed to this solid quarterly performance. To be noted in particular the buoyancy of the Optical Transport activity which, in line with 2021, shows a strong increase over Q1 2022, thanks to the success of the 200 Gb/s and 400 Gb/s WDM systems.

Profiting from the strength of its Services activity, its SDN (Software Defined Networks) solutions, the network function virtualization solutions, and the contribution of SixSq's activities, revenue generated by software and services rose by +64% over the quarter.

The share of software and services continued to increase, and now accounts for 17% of the Group's quarterly revenue, versus 12% one year prior, and 14% for full year 2021.

Solid momentum of international sales: growth of +54% in North America

The quarter was marked by dynamic international growth of +34%. The share of international activity accounted for 67% of revenue in Q1 2022, an increase over Q1 2021 (60%) and stable vs. FY 2021.

In North America, which totals 18% of Group's sales, Ekinops achieved vigorous quarterly growth of +54% in Q1 2022 (+42% in US dollars). This performance is the result of an extremely solid increase in the activity of both Optical Transport and Access solutions.

EMEA (Europe - excl. France - Middle East & Africa) region, which represents 42% of the Group's activity, achieved growth of +21% for the quarter, underpinned largely by Optical Transport solutions, particularly in Germany.

After two years of severely impacted business environment by the pandemic, Asia-Pacific got back to a more sustained level of activity in H2 2021. Q1 2022 demonstrates the continuation of this trajectory with a substantial increase of +113% in quarterly sales. This rebound comes as a result of upbeat sales of Access products in the region. The arrival of an Australian operator, who chose Ekinops' Access solutions, into the Group's top 10 clients list illustrates the renewed vitality of this region. 

Lastly, on its domestic market, the Group's activity remained virtually stable (-2%) in Q1 2022. It should be noted that Q1 2021 was marked by very sustained growth of +31% in France (activity stable over FY 2021).

2022 financial objectives confirmed

After an upbeat 2021, Ekinops has made an excellent start to 2022 with very robust demand. Nevertheless, the Group remains vigilant regarding the component crisis which should remain to the fore in the coming quarters.

The Group confirms its 2022 annual financial objectives:

• robust organic growth, at least equal to 2021 growth (+12%) and pushing towards +15%;
• gross margin of between 52% and 56%, in line with its long-term ambitions and factoring in the potential impact of the supply chain crisis on electronic components, which is still very much ongoing;
• EBITDA margin between 14% and 18%, integrating human and technological investments to execute the new growth plan.

Meanwhile, the Group is continuing to explore all acquisition opportunities that could create value for the company.

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EKINOPS Contact
Didier Brédy
Chairman and CEO
[email protected]

Investors
Mathieu Omnes
Investor relation
Tel.: +33 (0)1 53 67 36 92
[email protected]

SOURCE Ekinops