Ekinops reported Q1 2024 consolidated revenue of 28.3 m€, down as expected compared to Q1 2023 (-11%).
The quarterly revenue was in line with the Q3 and Q4 2023 trend (27.8 m€ and 30.3 m€ respectively), in an economic environment that remains slow. The company cited a mixed performance across different product lines and regions, with growth in Access solutions offset by declines in Optical Transport and challenges in international markets.
Here's a summarized overview of Ekinops' Q1 2024 financial results:
Access Solutions:
Sales grew by 3% compared to Q1 2023.
Sequentially, sales increased by 33% compared to Q4 2023.
Strong rebound in France (+19%), while EMEA (excluding France) saw a 13% decline.
Optical Transport Solutions:
Sales declined by 27% compared to Q1 2023.
Cautious investment policies and large inventories contributed to the downturn.
Launch of new 800G optical solution contributed to a wait-and-see attitude among customers.
Software & Services:
Accounted for 15% of quarterly revenue.
Slightly lower compared to Q1 2023 (14%) and FY 2023 (17%).
Regional Performance:
France: Revenue increased by 15% compared to Q1 2023, driven by Access solutions. Optical Transport solutions declined by 10%.
International: Sales decreased by 24%, with significant declines in all regions.
North America: Sales were €7.0m, accounting for 25% of total business activity, similar to FY 2023.
EMEA: Sales declined by 21%, with a more pronounced drop in Optical Transport activity.
Asia-Pacific: Accounted for 3% of total business activity, with relatively stable sales.
Revenue Distribution:
France accounted for 43% of revenue (vs. 32% in FY 2023).
International business accounted for 57% of revenue (vs. 68% in FY 2023).
As for its outlook, Ekinops said 2024 kicked off with a stabilized level of sales comparable to the 2nd half of 2023, against a backdrop of economic slowdown, with limited signs of recovery at this stage. In Access, the improved Q1 sales in France in a context of operators easing equipment inventories is an encouraging sign. The Group confirms that it is aiming for a rebound in Access equipment sales during 2024, both in France and in EMEA, as the economy recovers. In Optical Transport, the launch of the new 800G product and a new OTN (Optical Transport Network) solution should boost business momentum over the coming semesters.
