PARIS, April 8, 2020 - EKINOPS (Euronext Paris - FR0011466069 – EKI), a leading supplier of telecommunications solutions for telecom operators, has published its revenue for the 1st quarter of 2020 (January 1 - March 31, 2020).
EKINOPS posted Q1 2020 consolidated revenue of €21.1 million, up 1.8% from Q1 2019. Q1 revenue growth was 1.1% at constant exchange rates.
Didier Brédy, Chairman & CEO of Ekinops, made the following comments:
“We have just closed a highly unusual first quarter marked by the coronavirus (COVID-19) pandemic and its unprecedented health-related consequences, which impacted Ekinops’ operation.
Achieving quarterly growth of 2% under such circumstances is a great performance. I would like to point out the critical role played by all of our employees, who have worked hard for weeks to ensure our business continuity including product delivery and customer support.
Our mission is to expand network bandwidth and ensure smart connections for telecom operators and their corporate customers. Today, some large operators are increasing their capacity to meet this demand. Others are being very prudent in their spending and are depleting existing equipment inventory. Nevertheless, they will resume their investments once the crisis is over. This crisis demonstrates the increasing dependence of companies on high-performing networks, provision of which is Ekinops’ mission and primary growth driver.”
North America: 16% growth in Q1 2020
North America was the fastest growing region in 2019 and has continued to grow at a steady pace, posting Q1 2020 sales up 15.7% driven by the success of optical transport equipment.
In Q1 2020, the revenue outside of France was 66% compared to 67% for the 2019 financial year: 45% for the EMEA region (Europe, Middle East & Africa, excluding France), 15% for the United States and 6% for the APAC region (Asia-Pacific). France generated 34% of revenue for the period.
Outlook
EKINOPS started 2020 with the goal of continuing to deliver double-digit organic growth in the long term, as in 2018 (14% pro forma growth) and in 2019 (11%), combined with a gross profit margin between 50% and 55%, well above the industry standard.
As the situation is changing rapidly, it is currently difficult to quantify the economic consequences of the crisis and its impact on the business in 2020. It is possible that the crisis may impact certain financial targets for this year.
The Group will keep the market informed of all major developments significantly impacting its business.
Financial reporting calendar
|
Date |
Release |
|
Thursday, May 28, 2020 |
General Meeting |
|
Thursday, July 9, 2020 |
Q2 2020 revenue (unaudited) |
|
Tuesday, July 28, 2020 |
H1 2020 results (limited review) |
|
Monday, October 12, 2020 |
Q3 2020 revenue (unaudited) |
|
Tuesday, January 12, 2021 |
FY 2020 revenue (unaudited) |
All press releases are published after Euronext Paris market close.
About Ekinops
EKINOPS is a leading provider of open and fully interoperable Layer 1, 2 and 3 solutions to service providers around the world. Our programmable and highly scalable solutions enable the fast, flexible and cost-effective deployment of new services for both high-speed, high-capacity optical transport as well as virtualization-enabled managed enterprise services.
Our product portfolio consists of three highly complementary product and service sets: EKINOPS 360, OneAccess and Compose. EKINOPS 360 provides optical transport solutions for metro, regional and long-distance networks with WDM for high-capacity point-to-point, ring and optical mesh architectures, and OTN for improved bandwidth utilization and efficient multi-service aggregation.
OneAccess offers a wide choice of physical and virtualized deployment options for Layer 2 and Layer 3 access network functions.
Compose supports service providers in making their networks software-defined with a variety of software management tools and services, including the scalable SD-WAN Xpress. As service providers embrace SDN and NFV deployment models, EKINOPS enables future-proofed deployment today, enabling operators to seamlessly migrate to an open, virtualized delivery model at a time of their choosing.
A global organization, EKINOPS (EKI) - a public company traded on the Euronext Paris exchange - is headquartered in Lannion, France, and EKINOPS Corp., a wholly-owned subsidiary, is incorporated in the USA.
Name : EKINOPS
ISIN Code : FR0011466069
Mnemonic code : EKI
Number of shares: 24,184,336