EKINOPS : posts Q1 2020 growth despite the effects of the pandemic

€m - IFRS - unaudited	2019	2020	Change
Q1 revenue	20.8	21.1	+2%

EKINOPS posted Q1 2020 consolidated revenue of €21.1 million, up 1.8% from Q1 2019. Q1 revenue growth was 1.1% at constant exchange rates.

Didier Brédy, Chairman & CEO of Ekinops, made the following comments:

'We have just closed a highly unusual first quarter marked by the coronavirus (COVID-19) pandemic and its unprecedented health-related consequences, which impacted Ekinops' operation.

Achieving quarterly growth of 2% under such circumstances is a great performance. I would like to point out the critical role played by all of our employees, who have worked hard for weeks to ensure our business continuity including product delivery and customer support.

Our mission is to expand network bandwidth and ensure smart connections for telecom operators and their corporate customers. Today, some large operators are increasing their capacity to meet this demand. Others are being very prudent in their spending and are depleting existing equipment inventory. Nevertheless, they will resume their investments once the crisis is over. This crisis demonstrates the increasing dependence of companies on high-performing networks, provision of which is Ekinops' mission and primary growth driver.'

North America: 16% growth in Q1 2020

North America was the fastest growing region in 2019 and has continued to grow at a steady pace, posting Q1 2020 sales up 15.7% driven by the success of optical transport equipment.

In Q1 2020, the revenue outside of France was 66% compared to 67% for the 2019 financial year: 45% for the EMEA region (Europe, Middle East & Africa, excluding France), 15% for the United States and 6% for the APAC region (Asia-Pacific). France generated 34% of revenue for the period.

Outlook

EKINOPS started 2020 with the goal of continuing to deliver double-digit organic growth in the long term, as in 2018 (14% pro forma growth) and in 2019 (11%), combined with a gross profit margin between 50% and 55%, well above the industry standard.

As the situation is changing rapidly, it is currently difficult to quantify the economic consequences of the crisis and its impact on the business in 2020. It is possible that the crisis may impact certain financial targets for this year.

The Group will keep the market informed of all major developments significantly impacting its business.

Financial reporting calendar

Date	Release
Thursday, May 28, 2020	General Meeting
Thursday, July 9, 2020	Q2 2020 revenue (unaudited)
Tuesday, July 28, 2020	H1 2020 results (limited review)
Monday, October 12, 2020	Q3 2020 revenue (unaudited)
Tuesday, January 12, 2021	FY 2020 revenue (unaudited)

All press releases are published after Euronext Paris market close.