EKINOPS: Turnover for the 1st quarter of 2024: EUR 28.3 million – 04/15/2024 at 6:00 p.m.

PARIS, April 15, 2024 – 6:00 p.m. – EKINOPS (Euronext Paris – FR0011466069 – EKI)

a leading provider of telecommunications solutions dedicated to telecommunications operators and businesses, publishes its consolidated turnover for 1

^er

quarter of fiscal 2024 (1

^er

January – March 31, 2024).

At 1

^er

quarter 2024, Ekinops’ consolidated turnover amounted to €28.3 million, as expected, down compared to 1

^er

quarter 2023 (-11%), with a high basis of comparison (reminder: +15% quarterly growth last year).

This level of quarterly turnover is in line with the trend of 3

^th

and 4

^th

quarter of the 2023 financial year (respectively €27.8 million and €30.3 million), in a still slow economic environment.

The quarterly evolution is identical at constant exchange rate.

+3% increase in Access to 1

^er

quarter, decline in Optical Transport

After three consecutive quarters of decline, sales of solutions

Access

registered in progress on 1

^er

quarter 2024, with a level of activity increasing by +3% compared to 1

^er

quarter 2023. Sequentially, sales of Access from 1

^er

quarter 2024 are also an increase of +33% compared to the level recorded in 4

^th

quarter 2023.

This development is driven by the rebound in sales in France (+19% in 1

^er

quarter 2024) after a 2023 financial year marked by a decline of -18% in France. Stock levels of Access equipment at the main operator customers are gradually easing, but without returning to a normative level. In EMEA (excluding France), which constitutes the other main zone for this line of activity, sales remain in decline (-13% in 1

^er

quarter).

After a record year in 2023 (+27% growth over the entire financial year), sales of solutions

Optical transport

started the year 2024 in decline (-27% on 1

^er

quarter). Beyond the significant base effect with the comparable quarter last year (+32% growth in 1

^er

quarter 2023),

the cautious investment and network deployment policies of telecommunications operators, associated with the existence of significant stocks of optical transport solutions, explain this decline. The launch, on 2

^th

quarter 2024, of the new 800G optical solution

(800 gigabits per second) from Ekinops, making it possible to double the capacity of optical links and extend the range of networks, has also contributed to a wait-and-see attitude among certain customers.

The share of turnover generated by

Software & Services

stood at 15% of quarterly turnover (vs. 14% on 1

^er

quarter of 2023 and 17% for the whole of 2023).

+15% increase in sales in France in 1

^er

quarter 2024, -24% internationally

The start of the 2024 financial year is marked by a good performance from Ekinops in

France

with quarterly turnover up +15% compared to 1

^er

quarter 2023, driven by the rebound in sales of Access solutions, the Group’s main activity in its domestic market. Optical Transport solutions recorded a quarterly decline of -10% in France, but following a year 2023 marked by hyper-growth of +57% in this line of activity. At 1

^er

quarter 2024, Ekinops totaled 43% of its business volume in France (vs. 32% for the entire 2023 financial year).

Internationally, Ekinops is experiencing a start to the year marked by a decline in its activities in all areas. The share of activity carried out internationally thus rose to 57% over the past quarter (vs. 68% over the entire 2023 financial year).

In

North America

quarterly sales stood at €7.0 million compared to €6.7 million on 4

^th

quarter 2023. This zone represents 25% of the Group’s activity as of 1

^er

quarter 2024 (level identical to that of the entire 2023 financial year). As a reminder, the 1

^er

Quarter 2023 was marked by a historic level of activity (€9.5 million, growth of +86%), with significant deliveries of optical solutions to a major American service provider, covering 16 States.

The area

EMEA (Europe – excluding France – Middle East & Africa)

posted a -21% decline in its quarterly sales, with a more pronounced decline in the Optical Transport business line after experiencing strong growth in sales in 2023, particularly in Germany and Eastern Europe. Ekinops totaled 30% of its activity in EMEA as of 1

^er

quarter of 2024 (vs. 41% for the whole of 2023).

L’

Asia Pacific

which represents only 3% of the Group’s business volume as of 1

^er

quarter 2024 (vs. 2% for the whole of 2023), recorded a turnover of €0.8 million, relatively stable for three consecutive quarters.

Enrichment of the SD-WAN offer: acquisition of the “5View” software suite from Infovista

Ekinops announces the acquisition of the “5View” software suite from Infovista, publisher of mobile and fixed network infrastructure management software.

5View is a solution for analytical monitoring of application performance across networks. It collects data in real time, stores it and aggregates it to provide problem analysis reports, network service levels (SLA) and long-term network capacity management. It also provides the necessary visibility of application traffic in the context of an SD-WAN solution.

The 5View suite allows Ekinops to expand its software offering (Compose) for telecom operators and businesses. 5View will be integrated with Ekinops SD-WAN solutions but also brings value to any operator or enterprise wishing to increase their visibility into applications in their network, regardless of their network technology.

The acquisition of the 5View software suite also strengthens Ekinops’ R&D with 4 engineers, based in France, who will continue to maintain and enrich the solution within the Group’s teams.

The volume of activity associated with this acquisition is nearly €1 million, carried out through clients, operators and companies, located in EMEA (Europe, Middle East & Africa) and Asia-Pacific. Furthermore, a commercial agreement was signed between Ekinops and Infovista so that the latter can continue to integrate and sell the 5View software as an integral part of its own network insurance service solutions.

This acquisition allows Ekinops to accelerate its strategy with an enriched SD-WAN offering and growth in its Software & Services revenues. In the longer term, the technologies used by the 5View suite could be extended to other sectors requiring large volume data processing.

This acquisition is carried out in cash, from Ekinops’ available cash.

Outlook

The year 2024 began with a stabilized turnover compared to the last quarters of 2023, against the backdrop of an economic slowdown, and with no signs of recovery at this stage.

In Access, the improvement in sales in France in 1

^er

quarter, against the backdrop of reductions in equipment stocks among operators, constitutes an encouraging signal. The Group confirms that it is targeting a rebound in sales of Access equipment during 2024, in France but also in EMEA, as the economic recovery progresses.

In Optical Transport, the launches of the new 800G product and a new OTN solution (

Optical Transport Network

) should contribute to better activity dynamics over the coming semesters.

Beyond the acquisition of 5View, Ekinops remains mobilized in terms of external growth to carry out one or more operations in order to consolidate the R&D strike force, strengthen the offer and complete the customer base, by favoring a non-profit financing method. dilutive.

Financial diary

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

About Ekinops


Ekinops is a provider of open, reliable and innovative network connectivity solutions to service providers (telecom operators and enterprises) across the world.

Ekinops solutions, designed with high value-added software, enable the rapid and flexible deployment of new optical, broadband and high-speed transport services, as well as enterprise services, particularly through network virtualization.

The portfolio of solutions and services is made up of three perfectly complementary brands:

• Ekinops 360, for the needs of metropolitan, regional and long-distance optical transport networks, based on two technologies: WDM for a simple, compact and integrated architecture; OTN for complex multi-vendor environments;

• OneAccess, to offer a wide choice of deployment options, physical and virtualized, for voice and data routing;

• Compose to define networks in software with a variety of management tools and services, including the scalable SD-WAN Xpress solution and SixSq’s Edge-to-Cloud solutions.

As service providers adopt Software Defined Networking (SDN) and Network Functions Virtualization (NFV) deployment models, Ekinops solutions enable them to seamlessly migrate to open, virtualized architectures.

Ekinops has a global organization and operates on four continents. Ekinops is listed on Euronext in Paris.

Label: Ekinops

ISIN code: FR0011466069

Mnemonic code: EKI

Number of shares making up the share capital: 26,994,049

More information on www.ekinops.com

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