KERLINK (EPA:ALKLK) - Kerlink Press Release : Record business in Q4 2017: €9.9m (x2)

Transparency directive : regulatory news

30/01/2018 18:00

Record business in Q4 2017: EUR9.9m (x2)
Nearly EUR25m in revenue for FY 2017: +75%

PRESS RELEASE
Thorigné-Fouillard, 30 January 2018, 6:00 p.m.

Thorigné-Fouillard, France, 30 January 2018 - Kerlink (AKLK - FR0013156007), a
global specialist in network solutions for the internet of things, has
published its revenue for financial year 2017.
Revenue shot up 75.4% over the period to EUR24.8m, in line with financial
market guidance. All-organic growth kept up the already solid pace set in FY
2016 (+90%).

Full-year performance got a strong boost from Q4 2017 business, with revenue of
EUR9.9m, more than doubling the performance recorded in Q4 2017
like-for-like.

Revenue
by business (EURK)
                     Q4 2017  Q4 2016   Change   2017   2016   Change
Public operators      6,492     1,778   x 3.7   14,714  5,164    x 2.8
Private operators     3,330     2,897   +14.9%   9,907  8,800   +12.6%
Reference design         46        20     NS       147    153       NS
Total                 9,868     4,695   x 2.1   24,767 14,117   +75.4%
                                              IFRS - Unaudited figures

Kerlink posted a 2.8-fold increase in revenue generated with public operators

As expected, the big contributors to this 2.8-fold increase in full-year
revenue were public operators as they began rolling out their networks.
Acceleration was particularly strong in the fourth quarter, with revenue of
nearly EUR6.5m, i.e. 3.7x compared to the same period in 2016.

Drawing on the brand recognition gained by the Group with the launch of the
world's largest LoRa(TM) network by Tata Communications in India, the business
earned several new client references among top-tier public network operators.

The corporates and local authorities market also recorded robust growth, with
revenue up 12.6% to almost EUR10m.

The Group markets solutions for leading industry players such as Digimondo
(Germany), Netemera (Poland), Proximus (Belgium), Libatel (Lebanon), Spark (New
Zealand) and Yeap! (Argentina). Even after the infrastructure facilities are
installed, these contracts offer a multitude of opportunities for the Group to
highlight the advantages of its high value-added service range.

The Reference Design offer generated its first license revenues over the
period. Reference Design provides manufacturers with a network connectivity
solution that quickly and easily incorporates their products into the Internet
of Things.

Over 50% of business generated abroad

Revenue
by geographic area (EURK)
                         2017     2016   Change
NCSA (Americas)           561      171    x 3.3
APAC (Asia-Pacific)     8,697      450   x 19.3
EMEA, excl. France      3,507    2,918   +20.2%
FRANCE                 12,001   10,578   +13.4%
Total                  24,767   14,117   +75.4%
                       IFRS - Unaudited figures

The lion's share of business momentum was generated on the International
market, with nearly EUR12.8m in revenue, up 3.6x versus 2016. Its contribution
to total business activity came to 52%, versus 25% in 2016, illustrating the
Group's solid penetration of all markets investing heavily in IoT.

In the Asia-Pacific region, revenue posted over 19-fold increase to almost
EUR8.7m, driven predominantly by the performance of the Tata Communications
contract in India.

Europe (excluding France) delivered a very satisfactory performance as well,
with revenue topping EUR3.5m, up by more than 20%.

The Americas also made a respectable contribution to performance, tripling
business revenue to EUR560k. The Group's Chicago location, established in
summer 2017, promises to be a major source of leverage for expanding on this
high-potential market.

Finally, the Group did well in France with revenue of EUR12m, up by more than
13% compared to 2016.

Earnings expected to show a strong improvement in the second half

The end of the financial year was a rousing success, which should reflect
positively on earnings. In line with financial market guidance, year-end
business is expected to generate significantly positive EBITDA in the second
half.

More growth on the horizon in 2018

In 2017, the Group proved that it was capable of implementing large-scale
projects and winning over top-shelf clients. Building on this success, Kerlink
now enjoys strong brand recognition and greater visibility, both of which
should further strengthen sales momentum with public and private operators
alike.

In 2018 as well, business will be driven by the execution of orders recorded in
recent months and the projected increase in service revenues. Finally, the new
structure established in the second half of 2017 will play a decisive role in
furthering the Group's development.

With such a bright outlook ahead, Kerlink is heading into 2018 with confidence
and renewed determination to earn more than EUR70m in revenue 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 EUR10 million in R&D. In just over 10 years, more than
100,000 Kerlink installations have already been rolled out for more than 330
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 2018, Kerlink generated revenue of nearly EUR25 million, over
50% of which internationally. Since 2013, it has posted average annual growth
of more than 62%. Kerlink has been listed on the Euronext Growth market since
May 2016 and joined the Enternext PEA PME 150 index in October 2017.

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

                              Upcoming events
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                              4 April 2018
                            www.kerlink.com

Investor contact:
Actifin
Benjamin Lehari
+33 (0)1 56 88 11 25
blehari@actifin.fr

Press and Market Analysts contact:
Mahoney Lyle
Céline Gonzalez
+33 (0)6 75 85 60 42
cgonzalez@mahoneylyle.com

Financial Press contact:
Actifin
Isabelle Dray
+33 (0)1 56 88 11 29
idray@actifin.fr

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KERLINK (EPA:ALKLK) - Kerlink Press Release : Record business in Q4 2017: €9.9m (x2)

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