EKINOPS (Euronext Paris - FR0011466069 – EKI), a leading supplier of telecommunication solutions for telecom operators and enterprises, has published its revenue for the third quarter of 2022 (July 1 to September 30, 2022).
Acceleration of growth in Q3 2022: +36%
Ekinops reported Q3 2022 consolidated revenue of €32.8 million, up by a robust +36% versus Q3 2021.
At constant scope and exchange rates, revenue was up +29%, reflecting further acceleration and significant progress on the annual guidance of +15%, which was already increased in July.
For the first nine months of 2022, the Group’s consolidated revenue totaled €96.1m versus €74.9m a year earlier, representing an increase of +28% (+23% at constant scope and exchange rates).
Substantial growth for all business lines
All the Group’s business lines posted brisk growth. In particular, sales for Access solutions reported accelerated growth (notably in France), up +26% over the nine-month period versus +21% at the end of the first half of 2022.
As in 2021, the first nine months of 2022 were characterized by the excellent momentum of Optical transport, which posted growth of +32% versus a year earlier (+31% in H1 2022) thanks to the success of 200 Gb/s and 400 Gb/s WDM systems.
Driven by the success of SDN (Software Defined Networks) solutions, network functions’ virtualization and Services, revenue generated by sales of Software and Services increased by +32% year-on-year, representing 14% of Group’s revenue over nine months.
Buoyant growth of +62% in North America and +39% in France
The first nine months were marked by strong growth in international business (+23%), with an increase in all regions, particularly North America and Asia-Pacific. As of 30 September 2022, international business accounted for 64% of total revenue.
In North America, activity continued to record robust growth, with business volumes totaling €21.1 million, up +62% versus the previous year (+42% in US dollar). This growth benefited from strong demand for Optical Transport equipment. With 22% of its business now generated in North America, Ekinops achieved for the first time more than 20% of its revenue in that region.
After two years of business impacted by the pandemic, Asia-Pacific returns, quarter after quarter, to a dynamic growth trajectory at +36% for the first nine months. Asia-Pacific accounted for 6% of Ekinops’ total revenue as of 30 September 2022.
EMEA (Europe, excluding France, the Middle-East and Africa), which represented 36% of business over the first nine months, generated revenue of €34.6 million, up +6% relative to the same prior-year period, in line with H1 2022 (+6%).
After virtually stable revenue in its domestic market in 2021 and Q1 2022, Ekinops restored sharp growth in France. Boosted by robust sales momentum in Access solutions, Q3 2022 growth amounted to +59% in France, an increase of +39% over the first nine months. Over the period, Ekinops recorded 36% of its sales in France.
Annual organic revenue guidance increased to more than +20%
H1 2022 was very dynamic for the Group and Q3 2022 reflects the continued acceleration in growth, further illustrating Ekinops’ ability to outperform its competitors and capture market share in an environment penalized by the components crisis.
In view of its excellent Q3 2022 performance, Ekinops further raises its growth guidance and confirms its gross margin and EBITDA targets for the 2022 fiscal year:
- organic growth now expected to be more than +20%, versus the increase to +15% at end-July and more than 12% initially targeted;
- gross margin of between 52% and 56%;
- EBITDA margin between 14% and 18%.
In addition, Ekinops continues to actively pursue external growth and explore all acquisition opportunities that would create value for the company.
2022 financial calendar
|
Date |
Release |
|
January 11, 2023 |
FY 2022 revenue |
|
March 7, 2023 |
2022 annual results |
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About Ekinops
Ekinops is a leading provider of open, trusted and innovative network connectivity 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: EKINOPS360, OneAccess and Compose.
- EKINOPS360 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 and SixSq Edge-to-Cloud solutions.
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 operates on four continents.
Name : EKINOPS
ISIN Code : FR0011466069
Mnemonic code : EKI
Number of shares: 26,171,726