Ekinops turnover up 13% over the first nine months of the year 2021 annual targets confirmed

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Posted: October 12, 2021 at 12:58 PM EDT|Update: 5 hours ago

PARIS, 12 October 2021 / PRNewswire / – Ekinops (Euronext Paris – FR0011466069 – EKI), a leading provider of telecommunications solutions for telecom operators and businesses, has released its revenue for the third quarter of 2021 (July 1 to September 30).

Ekinops logo (PRNewsfoto / Ekinops)

€ m – IFRS
Unaudited data

2020

2021

Switch

Constant change
change rate

1st quarter revenue

21.1

23.2

+ 10%

+ 12%

T2 revenue

24.7

27.6

+ 12%

+ 14%

Q3 revenue

21.6

24.1

+ 11%

+ 12%

9-month turnover

67.4

74.9

+ 11%

+ 13%

Double-digit growth continues in the third quarter of 2021

Ekinops achieved a consolidated turnover of 24.1 M € in the third quarter of its financial year, reflecting a steady growth of 11% compared to the third quarter of 2020. At constant exchange rates, turnover increased by 12 % organic1.

As in the first half, the third quarter was marked by strong commercial momentum for Optical Transport solutions in all geographic areas.

During the first nine months of 2021, Ekinops’ turnover amounted to € 74.9 million, up 11% year on year (+ 13% organic growth), the two activities, Accès and Optical Transport, contributing to growth. The Group is therefore on track to achieve its double-digit growth target in 2021.

Bolstered by the success of Software Defined Networks (SDN) and virtualization offers, the share of software and services continued to grow, representing more than 13% of Group sales at end of September 2021 (against 10% for the year 2020).

Acceleration of international growth

Growth accelerated internationally over the first nine months, with Ekinops posting growth of 20% over the period (+ 14% in H1 2020). At the end of September, international business represented 67% of the Group’s total turnover (vs. 63% for the year 2020).

The EMEA region (Europe – excluding FranceMiddle East and Africa) posted growth of 24%, with nine-month sales of € 32.6 million. The region benefited in particular from the 60% increase in sales of optical transport solutions.

North America Once again achieved double-digit growth, with sales of € 13 million, reflecting strong growth of 21% (+ 28% in USD). The trend was fueled by solid growth in access and optical transport solutions.

After a period of 18 months impacted by the consequences of the pandemic, Asia Pacific returned to growth in the third quarter, with sales down only 7% over the first nine months of the year (against -29% over the first six months).

France posted nine-month revenue of € 24.7 million, down slightly by 3% since the start of the year. This performance should be compared with the growth achieved over the same period in 2020 (+ 11%).

2021 forecasts fully confirmed

Thanks to strong business volumes in the third quarter of 2021, Ekinops is confident in its ability to post double-digit growth in 2021, accompanied by solid operational performance. Nevertheless, the Group remains cautious given the unprecedented and persistent global crisis in the supply of certain electronic components.

In the past, Ekinops has successfully demonstrated its agility in terms of sourcing and inventory management, as well as its perfect mastery of the supply chain. In response to the often significant price increases of certain components, Ekinops has so far succeeded in passing part of the increases on to the selling prices of its equipment. More broadly, the increase in the share of software and services in the business mix, as well as the upscaling strategy (virtualization, SD-WAN, OTN), help to preserve the Group’s margin.

To date, these tensions have had only a slight impact on activity. The Group thus remains confident of reaching its annual objective of double-digit revenue growth with a gross margin of between 52% and 56%, and an EBITDA margin (target raised at the end of July) of between 14%. and 18%.

Ekinops remains active on the external growth front, continuing to explore all acquisition opportunities likely to create value for the company.

Commenting, Didier Brédy, Chairman and CEO of Ekinops, said:

“Ekinops had a record third quarter despite unprecedented global pressures on electronic components. This reflects the Group’s solid performance, driven by the efforts made in all geographic areas and by our desire to generate strong and sustainable growth.

We are very pleased with the continued double-digit growth of North America and EMEA, the first signs of an upturn in activity in the Asia Pacific region, and the solid outlook for our business activities in France by the end of the year.

Despite the inflation in component prices, we remain confident in achieving our objectives for fiscal 2021. “

2021 financial calendar

Dated

Exit

January 12, 2022

Revenue for fiscal year 2021

March 8, 2022

Annual results 2021

All press releases are published after the close of Euronext Paris.

For more information visit www.ekinops.com

Contact EKINOPS

Didier Brédy
President and CEO
[email protected]

Investors

Mathieu Omnes
Investor relations
Phone. : +33 (0) 1 53 67 36 92
[email protected]

hurry
Amaury Dugast
Press relation
Phone. : +33 (0) 1 53 67 36 74
[email protected]

1 Without change in scope, organic growth corresponds to growth at constant exchange rates.

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SOURCE Ekinops

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