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

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Jul 12, 2021, 13:39 ET

PARIS, July 12, 2021 /PRNewswire/ -- 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).

€m - IFRS Unaudited data	2020	2021	YoY Change	Change at constant exchange rates
Q1 revenue	21.1	23.2	+10%	+12%
Q2 revenue	24.7	27.6	+12%	+14%
H1 revenue	45.8	50.8	+11%	+13%

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

Date	Release
July 29, 2021	H1 2021 results
October 12, 2021	Q3 2021 revenue
January 12, 2022	FY 2021 revenue
March 8, 2022	2021 annual results