Ekinops : Revenue at €93.5m for 2019, an 11% increase with 21% growth in Q4

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.

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