Citing inventory saturation with customers and challenging conditions, Padtec reported net revenue of R$58.4 million in 1Q24 and R$347.9 million in LTM 1Q24. In the comparison between 1Q24 and 1Q23, there was a drop of 26.3% and between 1Q24 and 4Q23, the reduction was 34.5%. Gross profit amounted to R$14.9 million in 1Q24 (gross margin of 25.5%) and R$117.7 million in LTM 1Q24 (gross margin of 33.8%).
Padtec noted restructuring including renegotiating contracts with suppliers and a reduction of its workforce to adjust its operations
Company highlights for Q1
- Good results in the first tests carried out in real networks with prototypes of new dual disaggregated transponders (standalone) with up to 800 Gb/s per optical channel (1.6 Tb/s in total) for medium, long, and ultra-long distances. The launch of LightPad Max, a new generation of Padtec transponders, is scheduled for 1H24.
- Additionally, Padtec is in the advanced stages of installing a manufacturing unit to produce its own
- pluggable (coherent transceivers with high transmission capacity). This equipment will be intended for the Company's internal consumption and, indirectly, will contribute to increasing the presence of itshigh-capacity DWDM solutions in metropolitan networks, new demands in large-scale data centers, and the so-called EDGE Data Centers.
- The performance of the Services, Software, and Platforms BU contributes to offsetting the momentary saturation of stocks on the networks experienced by the Equipment/DWDM area.
- The new service, software, automation, and outsourcing solutions Padtec offers help customers
- perform their activities more efficiently.
- In the Equipment/DWDM BU, the FIDC Funttel and the FINEP Aquisição Inovadora Telecom financing line (offered by FINEP, the Brazilian Federal Government Funding Authority for Studies and Projects) enable customers to take advantage of favorable conditions for acquiring Padtec equipment.
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