Record revenue in first-half 2021: €50.8m, for a substantial increase of 13% at constant exchange rates

EKINOPS (Euronext Paris - FR0011466069 – EKI), a leading supplier of telecommunications solutions for telecom operators and businesses, has published its revenue for the 2^nd quarter of 2021 (April 1 - June 30, 2021).

Q2 2021: new quarterly revenue record

Ekinops posted consolidated revenue of €27.6m in Q2 2021, a strong 12% increase compared with Q2 2020. At constant exchange rates, quarterly growth comes out at 14%.

The group thus achieved double-digit growth for a second consecutive quarter while reporting its strongest ever quarterly revenue.

Optical Transport: Growth of 26% in first-half 2021

Over the first half of 2021, Ekinops topped the mark of €50m in 6 months consolidated revenue for the first time in its history. Revenue for the period came out at €50.8m, up 11% in total (13% at constant exchange rates). At mid-year, the Group is fully in line with its target of a double-digit annual growth in 2021.

All the Group product lines (Optical Transport, Access and Software) posted growth and contributed to the solid half-year performance. Optical Transport demonstrated particularly strong momentum, with
H1 growth of 26%, and, for the first time, generated over €10m in revenue in a single quarter.

The share of software and services increased to 12% of revenue in reporting period (compared with 8% in H1 2020), driven in particular by the success of network function virtualization solutions.

Growth of 25% (in USD) in North America in first half 2021

North America and EMEA (Europe, Middle East & Africa excluding France) were the most dynamic regions in the first half of the 2021 financial year.

Growth in North America came out at 15%, rising to 25% in US dollars. While Optical Transport equipment continue to prove highly successful, the first half was marked by a boost in the sales of Access solutions. These solutions enable operators to undertake the virtualization of their network functions and benefit from new-generation software-defined networks (SDNs). Access sales almost doubled in the region, reaching a seven-digit number over the period.

After a stable first quarter, the EMEA region bounced back sharply in the second, ending the first half with robust growth of 22%. All the business lines posted growth, with an extremely strong increase for Optical Transport equipment.

First-half growth in France amounted to 4%, with a slight slowdown in Q2 2021 that was to be expected owing to extremely strong momentum in the region in Q2 2020 (growth of 29%). In the domestic market, all the Group’s business activities also posted growth.

In Asia-Pacific, the business activity remained depressed in the first half (-29%). The region continues to struggle to rebound following the extreme impact of the pandemic.

At the end of first-half 2021, international business accounted for 67% of Group revenue, compared with 63% for FY 2020. Of the total, EMEA accounted for 45%, the United States for 17% and APAC for 5%. France accounted for 33% of business activity in the first half.

Outlook: annual 2021 guidance confirmed

In addition to these strong figures, which demonstrate the relevance of Ekinops’ solutions relative to the needs of operators, new orders were also strong in the second quarter, illustrating the Group’s growing ability to capture the investments of these companies.

Global tensions remain on the supply of certain electronics components but have thus far had only a minor impact on the business activity of the Group, which fully controls its supply chain.

At the end of the first half, Ekinops is confirming its annual guidance for double-digit growth in 2021.
As a reminder, the Group is also aiming for a gross margin of between 52% and 56% and an EBITDA margin of 12% to 16% in FY 2021.

In parallel, Ekinops is pursuing its proactive approach to external growth and exploring all the acquisition opportunities that could create value for the company.

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

“Ekinops posted a high-flying first half, with major symbolic milestones reached over the period. It posted record business activity in the second quarter, topping for the first time ever the €10m mark in quarterly revenue for the Optical Transport business as well as the €50m mark in half-year revenue.

Illustrating this momentum, the Group’s Access business is booming in North America as a result of the substantial sales efforts made in the region and the segment. These efforts have served to win major contracts, in particular with a Tier-1 North American operator, which has selected our Access solutions.

While we remain vigilant as to the evolution of the health situation and its consequences on the supply of certain components in the coming months, we are increasingly optimistic for the rest of the year and the positive impact of this sustained growth on our results.”

2021 financial calendar

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: 25,727,618