EKINOPS: EUR 127.6 million in revenue in 2022, up +23% – 01/11/2023 at 6:00 pm

PARIS, January 11, 2023 – 6:00 p.m. – EKINOPS (Euronext Paris – FR0011466069 – EKI)

a leading provider of telecommunications solutions dedicated to telecommunications operators and businesses, publishes its annual revenue for the 2022 financial year, ended December 31, 2022.

SixSq has been consolidated since November 1, 2021.

At the end of the 2022 financial year, the consolidated turnover of Ekinops stood at €127.6 million, up +23% compared to the previous financial year on a like-for-like basis (+19% at constant exchange rates).

At 4

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quarter of 2022, revenue amounted to €31.5 million compared to €28.7 million a year earlier, an increase of +10% (+6% at constant exchange rates) despite pressure on particularly strong logistics and supply chain at the end of the year. The difficulties in delivering certain orders at the end of the year, which will be honored early in 2023 without causing major problems for customers, have thus caused a shortfall of several million euros in terms of invoicing on the 4

^th

quarter. At the same time, commercial activity and order intake remained very dynamic at the end of the year.

Strong traction for all business lines, leap of more than +38% in software and services

The Group’s sustained growth in 2022 was driven by strong demand for all business lines, particularly for Optical Transport products (+29% in 2022), with the confirmed success of WDM solutions at 200 Gb/s and 400 Gb/s, especially in North America.

Access solutions, for their part, recorded annual growth of +20%, driven in particular by the strong rebound in activity in France.

The contribution of Software & Services continued to grow, representing 15% of group revenue in 2022. Over the past financial year as a whole, revenue generated by Software & Services jumped by more than +38%, driven by sales of software that facilitates the virtualization of network functions and by the provision of services.

Sustained growth internationally, including +56% growth in activity in the United States

The year 2022 was characterized by continued dynamic growth internationally, which amounted to +17%. The share of business carried out internationally stood at 64% in 2022 (vs. 67% for the whole of the 2021 financial year).

In North America, business continued its very strong growth, with business volume amounting to €29.8 million compared to €19.1 million in 2021, i.e. a strong increase of +56% (+39% at constant exchange rate). Ekinops is taking advantage of the sustained demand for Optical Transport products in the region. The Group generated 23% of its sales in North America in 2022 (vs. 18% in 2021).

Asia-Pacific is on a strong growth trajectory in 2022, which stood at +38% over the year. The Group generated 7% of its business in this region last year (vs. 6% in 2021).

The EMEA zone (Europe – excluding France – Middle East and Africa), recorded revenue of €43.5 million in 2022, down slightly by -2% compared to the previous year, mainly due to the base effect (as a reminder, EMEA was the geographical area with the strongest growth in 2021 at +29%) . Ekinops totaled 34% of its activity in EMEA (vs. 43% in 2021).

In France, the company returned to more sustained activity. On its domestic market, Ekinops’ sales amounted to €45.9 million in 2022, up sharply by +36% (vs. -0.3% in 2021), representing 36% of total revenue of the Group (vs. 33% in 2021). This growth is the result of strong growth in sales to the Group’s historical customers.

Confirmation of 2022 gross margin and EBITDA targets

The 2022 financial year was marked by an acceleration of the growth momentum recorded in 2021, despite the persistence of the supply difficulties of certain electronic components which are just beginning to be absorbed.

Building on this good momentum, Ekinops confirms its 2022 annual objectives:

• a gross margin of between 52% and 56%
  
  ;

• an EBITDA margin of between 14% and 18%
  
  .

Ekinops will publish its 2022 annual results on March 7.

Didier Brédy, Chairman and CEO of Ekinops, comments:

“Fiscal year 2022 shows a marked acceleration in our growth, from +12% in 2021 to +23% in 2022, despite a disturbed market environment and a “challenging” end of the year at the level of the production.

The year 2023 is off to a very good start, with high demand, characterized by a record level of order backlog for this period of the year. We continue to gain market share thanks to our differentiated offers in our segments and our ability to meet the deadlines desired by our existing and new customers.

We are already anticipating another year of double-digit growth in our business. »

Financial diary

All publications will take place after the closing of the Euronext Paris market.

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