KERLINK (EPA:ALKLK) - Third-quarter 2017 revenue: +20%

Transparency directive : regulatory news

24/10/2017 18:00

PRESS RELEASE
Thorigné-Fouillard, 24 October 2017, 6:00 p.m.

                       Third-quarter 2017 revenue: +20%
                   2017 target confirmed: Revenue of EUR25m

Thorigné-Fouillard, France - Kerlink (ALKLK - FR0013156007), a specialist and
global leader in network solutions dedicated to the Internet of Things (IoT),
today published its third-quarter 2017 revenue.

Group sales remain robust, with revenue up nearly 20% despite the previous year
comparison base (growth of 163% in Q3 2016). In the first nine months of the
reporting year, aggregate business growth was up 58%, reaching EUR15m.
Strengthened by these favourable developments and excellent visibility for the
fourth quarter, Kerlink can confirm its target of EUR25m in revenue for 2017.

                        At 30      At 30
Revenue by          September  September
business (EURK)          2017       2016   Change   Q3 2017   Q3 2016   Change

Public operators        8,222      3,386   142.8%     2,902     2,163   34.2%
Private operators       6,577      5,903    11.4%     1,865     1,819    2.5%
Reference Design          101        133   -24.1%        45        44    2.3%
Total                  14,900      9,422    58.1%     4,812     4,026   19.5%

Consolidated revenue under IFRS - unaudited figures

Excellent performance with public operators

In Q3, revenue generated with public operators (historic or alternative) was up
more than 34%, reaching EUR2.9m. This increase reflects excellent performance
relative to Q3 2016, up more than 600% thanks to the execution of a major
contract with a leading French operator.

Over the course of the first nine months of the reporting year, revenue
generated from public operators increased, rising more than twofold (2.4x) to
EUR8.2m.

Going beyond the robust sales growth, the third quarter stood out thanks to the
signature of several new orders with operators that are expected to fuel growth
over the next few months, such as Yeap! for national roll-out across Argentina
by July 2018.

Private operators: growth in line with expectations

Revenue generated with private operators during the quarter was up slightly
(+2.5% to EUR1,865,000). Over the first nine months of the year, revenue from
this business exceeded EUR6.5m, up 11.4%.

This increase is in line with expectations while operational and sales
resources remain highly focused on the fulfilment of existing orders and the
increased market penetration towards international telecom operators. More, the
sales trend is here again on track, with a number of ongoing consultations in a
market that continues to expand.

Lastly, as expected, the contribution of value added services remains limited
for the period with their ramp- up hinging on the completion of the major
infrastructure deployment projects now underway. Revenue generated by the
Reference Design offering (turnkey services for producers of connected objects
that want to incorporate an optimised network connectivity solution into their
products) also remains modest, with the first significant royalties on
agreements signed with manufacturers. The rising importance of the "Kerlink
Advanced Services" business unit, unveiled in late September in connection with
the announcement of the Group's new organisational structure, should speed up
the development of these strategic activities beginning in 2018.

Increase of nearly 20% in international business performance

Revenue by             At 30      At 30
geographic         September  September
area (EURK)            2017        2016   Change   Q3 2017   Q3 2016   Change

NCSA (Americas)         311          87   257.5%       133        38     250%
APAC (Asia-Pacific)   4,613         398   x 11.6     2,234        59      x38
EMEA, excl. France    1,927       1,494      29%       519       804   -35.4%
FRANCE                8,049       7,443     8.1%     1,926     3,125   -38.4%
Total                14,900       9,422    58.1%     4,812     4,026    19.5%

Consolidated revenue under IFRS - unaudited figures

In France and the EMEA region, the decline in third quarter revenue is due to
the effects of an unfavourable comparison base reported in business development
with public operators.

In the first nine months of the reporting year, revenue generated in France
reached EUR8m, up more than 8%. In the EMEA countries, revenue generated from
this region for the first nine months came out at EUR1.9m, up 29%.

Internationally, revenue stands at more than EUR2.8m, up more than threefold
over the third quarter of 2016. This increase is particularly noticeable in the
Asia-Pacific region, where the Group confirmed a breakthrough. Third quarter
revenue for the region came out at more than EUR2.2m compared to EUR59,000 for
the same period last year. In addition to the execution of a contract signed
with Tata Communications in India, this increase was driven by Kerlink's
growing reputation as a leader in the deployment of infrastructures and
high-quality IoT network services.

In the Americas, third quarter revenue tripled to EUR133,000. The Group's
establishment of a location in Chicago during the summer should help to take
full advantage of the opportunities on this major market.

Good visibility for the last quarter

Kerlink enters the last quarter of the year with good visibility, thanks to the
quality of its order book and the continuation of its strong sales growth. So
far more than 40 major infrastructure deployment projects are under discussion
on every continent.

Against this backdrop, Kerlink reaffirms its confidence in its ability to reach
EUR25m in revenue for the 2017 business year, i.e. expected growth of more than
75%.

Revenue of EUR70m by 2020

In view of this favourable outlook and based on current market trends with both
public and private operators, Kerlink can confirm its revenue target of more
than EUR70 million by 2020.

About Kerlink

Kerlink specialises in network solutions for the Internet of Things (IoT). Its
mission is to provide its clients - telecom operators, businesses and public
authorities - with network solutions (equipment, software and services)
dedicated to the Internet of Things. Over the past three years, Kerlink has
invested more than EUR8 million in R&D. In just over 10 years, more than 70,000
Kerlink installations have already been rolled out for more than 260 clients,
including GrDF, Suez, Saur and Médiamétrie. Kerlink's solutions equip IoT
networks worldwide, with major roll-outs in Europe, South Asia and South
America. In 2016, Kerlink generated revenue of EUR14.1 million, 25% of which
internationally. Since 2013, it has posted average annual growth of more than
50%. Kerlink has been listed on the Alternext market since May 2016 and joined
the Enternext PEA PME 150 index in October 2017.

For more information, go to www.kerlink.fr and follow us on
Twitter @kerlink_news

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        2017 full year revenue : 30 January 2018 after market close
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Financial Press contact:
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