EKINOPS (Euronext Paris - FR0011466069 – EKI), a leading supplier of telecommunications solutions for telecom operators, has published its revenue for the third quarter of 2019.
In the third quarter of 2019, EKINOPS generated consolidated revenue of €22.9 million, entailing organic growth of 9.3% (up 7.5% at constant exchange rates) compared to third quarter 2018.
Q3 sales continued to grow steadily despite the exceptionally strong performances recorded in 2018. As a reminder, Q3 2018 accounted for 25% of total business volumes for the year, although it is generally a sluggish period, particularly in EMEA.
Nine-month revenues amounted to €67.9 million, a solid increase of 7.7% (up 6.3% at constant exchange rates) over the period.
United States: 74.3% growth in Q3 2019
Q3 2019 was marked by a slight acceleration in growth, particularly on the international market where sales momentum was highly sustained across all regions.
EKINOPS recorded robust third quarter growth of 31.8% on the international market, including a spectacular 74.3% revenue surge in the United States. The Group confirms its expectations that North America will be the fastest growing region in 2019, with full-year growth at least equal to the 33.5% nine-month revenue growth rate.
International business over the nine months ended September 30, 2019 accounted for 66% of Group revenue (vs. 58% in FY 2018): 40% for the EMEA region (Europe, Middle East & Africa excluding France), 15% for the Unites States and 11% for the APAC region (Asia-Pacific). France accounted for the remaining 34% of nine-month revenue.
Outlook
In the short term, strong momentum driven by global key accounts in a number of Ekinops’ main focus areas (optical transport at 200Gb/s, migration to the new OneOS6 operating system, virtualized functions, etc.) confirms the Group’s outlook for the end of the year and thereafter.
In terms of operating results, the Group confirms expectations of an FY 2019 gross margin towards the upper end of the normative range (50 to 55%) and operating expenses comparable to 2018, excluding the impact of the July OTN technology acquisition, which will generate full-year costs of around €2 million excluding depreciation and amortization.
Financial reporting calendar
Press release is 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:24,095,623