Ekinops reported fourth-quarter earnings of $30.6 million, a two percent decrease compared to the same period last year. While the company experienced growth in its access and software sectors, challenges persisted in optical networking due to adjustments in service provider spending.
For the latter half of 2024, Ekinops’ consolidated revenue reached $61.9 million, representing a four percent increase year-over-year and a five percent sequential rise compared to the first half of the year. However, the company’s total annual revenue for 2024 was $121 million, a nine percent decrease from the previous year, although flat when considering constant exchange rates.
Access Solutions and Software & Services demonstrated strong performance. Access Solutions revenue increased by 11 percent, and Software & Services expanded to 18 percent of the Group’s revenue, up from 17 percent in 2023. CEO Didier Brédy highlighted Access’s double-digit sales growth, significantly outperforming the market. He also noted potential future opportunities in cloud and AI applications.
Despite the positive performance in Access and Software, Optical Transport solutions faced headwinds, declining over 30 percent year-on-year. Ekinops attributed this downturn to service providers delaying expenditures due to inventory corrections and economic uncertainties. Factors contributing to the optical transport decline included post-pandemic overcapacity, slower internet traffic growth, increased financing costs, and order delays.
Nevertheless, Ekinops observed encouraging signs, particularly with initial shipments of its new 800G solution and a 38 percent sequential growth in Optical Transport activity in the fourth quarter. The company indicated that the fourth quarter marked the strongest period for Optical Transport in 2024, suggesting a potential recovery in this sector in 2025.
Regionally, France led growth with an 18 percent revenue increase driven by Access Solutions, now accounting for 41% of group revenue. Conversely, sales outside France decreased by 21%, representing 59% of total activity. North America, primarily driven by Optical Transport sales, saw a 26 percent decrease in revenue, representing 20% of group revenue. Ekinops described a cautious market in the US due to economic conditions, slower bandwidth demand, and delays in the BEAD program rollout. Asia-Pacific revenue declined by 32% and EMEA region revenue decreased by 18%, impacted by reduced Optical Transport sales, although EMEA showed sequential growth of over 37% between the first and second halves of 2024.
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