EKINOPS (Euronext Paris - FR0011466069 – EKI), a leading supplier of telecommunications solutions for telecom operators, has posted its revenue for FY 2019 ending December 31, 2019 and announced its financial reporting calendar for 2020.
In Q4 2019, EKINOPS posted €25.6m in consolidated revenue with organic growth of 20.7% versus Q4 2018 (up 18.6% at constant exchange rates).
The last quarter was characterized by a sharp upswing in organic growth (vs. 7.7% over nine months) as EKINOPS reached a new record in quarterly business.
Full-year revenue rose to €93.5m following sustained year-on-year growth of 11.0% (9.7% at constant exchange rates), including 15.0% growth (13.3% at constant exchange rates) in H2 2019.
Strong demand across all EKINOPS product lines
This growth largely came from strong demand for optical transport products, with the proven success of the 200G range and an enthusiastic market reception for the new 400G equipment launched last year. The success of these products helped boost growth to over 50% in the USA driven by four new key accounts in the region, three of whom exceeded $1m revenue in 2019.
Meanwhile, the Group made new strategic progress in virtualization, with several leading service providers adopting EKINOPS products: OneOS6, its VNFs (Virtual Network Functions) and OVP (Open Virtualization Platform). In November, the Group’s strategy in this field enjoyed a major recognition winning the Technology Solutions of the Year prize for NFV in the virtualization category at the MEF19 awards ceremony. This prestigious award attests to Ekinops’ leading position in customer premises equipment (CPE) virtualization.
The initial results of 1G and 10G access routers in 2019 were also promising. With these products, EKINOPS can offer applications with greater added value and, in this way, make inroads into new market segments.
Lastly, sales of software products—which still account for less than 10% of total revenue—practically doubled in 2019.
56.4% growth in USA in 2019
The robust growth in 2019—particularly the sharp upswing at the end of the year—is the fruit of vigorous business in all regions worldwide.
EKINOPS posted strong year-on-year growth of 28.5% on the international market. In particular, North America generated €15.7m in revenue in 2019, up from €10.1m the previous year—a 56.4% hike. As expected, this region posted the highest growth rate in 2019.
In 2019, the international share of Group revenue rose to 67% from 58% in 2018: 38% for EMEA (Europe excluding France, Middle East and Africa) vs. 37% in 2018; 17% for the USA (vs. 12% in 2018); 12% for APAC (Asia Pacific) vs. 9% in 2018. France generated 33% of revenue in 2019 (vs. 42% in 2018).
Outlook
EKINOPS continues to invest in software development and equipment with high added value, as illustrated with its acquisition of OTN technology at the start of the summer, which should allow it to triple sales of optical transport products by 2024.
Sales of software solutions will continue to grow over the next few years resulting in gradual changes in the product mix that will boost the Group’s long-term profitability.
Over the coming months, the Group plans to focus on high value-added applications such as SD-WAN (Software-Defined Wide Area Network), white boxes, OneOS6, its VNFs, services, 1G/10G routers, and OTN.
Buoyed by these many developments and its strategy to compete for higher-value applications, the Group has underlined its long-term goal of double-digit organic growth and EBITDA margins each financial year.
Financial reporting calendar
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:24,127,677