EKINOPS: Record turnover in the 1st half of 2022: 63.3 M EUR up +25% – 2nd quarter activity up +29% – 07/11/2022 at 6:00 p.m.

PARIS, July 11, 2022 – 6:00 p.m. – EKINOPS (Euronext Paris – FR0011466069 – EKI)

a leading supplier of telecommunications solutions dedicated to telecommunications operators and enterprises, publishes its turnover for the 2

^th

quarter of fiscal 2022 (1

^er

April – June 30, 2022).

The SixSq company has been consolidated since 1

^er

November 2021

Acceleration of growth in 2

^th

quarter of 2022: €35.5 million, up +29%

Up +29%, the 2

^th

quarter of 2022 marks a new peak of activity for Ekinops. The group’s consolidated turnover thus amounted to €35.5 million, compared to €27.6 million a year earlier. At constant exchange rates and scope, quarterly growth was +24%.

On the set of 1

^er

half of 2022, revenue amounted to €63.3 million, compared to €50.8 million in 1

^er

half of 2021, i.e. an additional €12.5 million. This strong business momentum represents growth of +25% compared to the 1

^er

half of 2021 and +20% compared to the 2

^n/a

half of 2021, traditionally more of a contributor.

At mid-2022, the group is therefore well ahead of its annual objective of business growth at least equal to that recorded in 2021 (+12%) to tend towards +15%.

Growth in all business lines, +47% growth in Software & Services

This good half-year performance is the result of the growth of all the Group’s business lines (Optical Transport, Access and Software & Services). Particular mention should be made of the dynamism of the Optical Transport activity which, in the wake of 2021, is showing very sustained growth of +31% compared to the 1

^er

half of 2021, thanks to the success of the 200 Gb/s and 400 Gb/s WDM solutions.

The half-year was also characterized by a very good momentum in sales of Access solutions across all geographical areas, recording growth of +21% compared to the 1

^er

semester 2021.

Driven by the success of SDN solutions (

Software Defined Networks

), network functions virtualization (

VNFs – Virtual Network Functions

), of the Services activity, including SixSq activities, the turnover generated by the sales of software and related services, which constitute a factor of improvement in profitability, jumped by +47%, representing 15% of half-year revenue.

+29% rebound in activity in France and strong momentum in international sales, including +48% in North America

The past half-year was marked by dynamic international growth, which stood at +22%, with sustained growth in all geographic areas. The share of business carried out internationally stood at 65% over the half-year (vs. 67% a year earlier).

North America recorded a business volume of €12.8 million, representing very strong growth of +48% compared to the 1

^er

half of 2021 (+33% expressed in US dollars) driven by demand for Optical Transport products. Ekinops has for the first time reached 20% of its activity in North America under the 1

^er

half of 2022 (vs. 17% a year earlier).

At mid-year, the EMEA zone (Europe – excluding France – Middle East & Africa), which represents 38% of activity, totaled revenue of €24.3 million, up +6% from compared to 1

^er

half of the previous year.

After two years heavily penalized by the pandemic, Asia-Pacific was able to return to growth in the 2

^n/a

half of 2021. This growth trajectory continued in the 1

^er

half of 2022 with extremely sustained growth of +80% in half-year sales. This growth is the result of strong traction for Access solutions, particularly with an Australian Tier 1 operator listed in the Group’s Top 10 customers. Ekinops generated 7% of its business in Asia-Pacific in 1

^er

half of 2022 (vs. 5% a year earlier).

After activity remained almost stable on its domestic market in 2021, and until 1

^er

quarter of the fiscal year, Ekinops returned to sustained growth in France in the 1

^er

semester of 2022. Buoyed by strong sales momentum for both Optical Transport and Access solutions, growth amounted to +29% in France compared to the 1

^er

half of 2021. In France, Ekinops recorded 35% of its half-year sales.

2022 annual targets fully confirmed at mid-year

After a 1

^er

particularly dynamic quarter (+20%), Ekinops continued its sustained growth trajectory in the 2

^th

quarter (+29%) with an excellent level of order intake illustrating the Group’s ability to capture investment from operators and companies and the adequacy of its solutions with the needs of the latter in a more difficult economic context.

The company nevertheless remains vigilant with regard to the component crisis which continues in 2022 and should remain strongly present in the quarters to come. To date, however, it has not had any major impact on the Group’s business, which, thanks to the control of its supply chain, largely outperforms its market and its competitors.

Mid-year, Ekinops confirms its annual financial objectives:

• sustained organic growth
  
  at least equal to that recorded in 2021 (+12%) to tend towards +15%;

• a gross margin of between 52% and 56%
  
  in line with the long-term ambition and taking into account the possible impacts of the supply crisis on electronic components;

• an EBITDA margin of between 14% and 18%
  
  integrating human and technological investments to execute the new growth plan.

At the same time, Ekinops continues to be particularly active in terms of external growth and to explore all acquisition opportunities that create value for the company.

Didier Brédy, Chairman and CEO of Ekinops, declares:

“After a dynamic 2021 for Ekinops, the start of 2022 is marked by a marked acceleration in demand growth. Illustrating this dynamism, all our business lines are growing strongly, and it is worth highlighting the strong traction for our Optical Transport solutions, particularly in North America. This momentum puts us ahead of our objectives set when acquiring OTN technology in 2019, which was to triple our sales in 5 years for this line of business.

Beyond the excellent growth in turnover, my greatest satisfaction is the positive feedback from our largest customers regarding the almost unique ability of Ekinops on the market to deliver equipment and solutions on time. as the unprecedented component crisis rages on. From the start of the Covid crisis, we opted to use our balance sheet to increase our inventories and buy certain risky components 12 to 18 months in advance, whereas we were buying 6 months before the crisis. These choices turn out to be winners because they generate satisfaction among our customers and allow us to gain market share. »

Financial diary 2022

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

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