KERLINK (EPA:ALKLK) - Kerlink : Q1 2018 revenue : €4.6m ; +19%.

Transparency directive : regulatory news

24/04/2018 18:05

Q1 2018 revenue: EUR4.6m; +19%
Robust performance in line with expectations
Continued strong international growth

PRESS RELEASE
Thorigné-Fouillard, 24 April 2018, 6:00 p.m.

Thorigné-Fouillard, France - Kerlink (ALKLK - FR0013156007), specialising in
network and IoT solutions, published its third-quarter 2018 revenue today.

Group revenue grew 19% in the first quarter 2018. This expansion represents an
excellent performance compared to an exceptionally strong Q1 2017 with growth
of 144%. Revenue in the period was also helped by robust expansion in
Asia-Pacific and growing sales of value-added applications services by the
Kerlink Advanced Services BU.

Success of Group's offering with telecom operators

Revenue by business
In thousands of euros          Q1 2018    Q1 2017    Change

Public operators                 2,083      1,529       36%
Private operators                2,463      2,326        6%
Reference Design                    45         15      200%
Total                            4,592      3,870       19%

IFRS - Unaudited figures

Growth in public operators remains healthy at 36% against the comparable prior
year period underlining the success of the Group's value offer in this target
market. Revenue in Q1 2017 was chiefly driven by the roll-out of network
infrastructure by a leading European operator.

Revenue generated with private operators grew by 6% over the period. This was
in line with Group projections, given that resources have been largely
allocated to gaining sales and accelerating the deployment of major projects
with international telecoms operators. Potential in this market remains high,
with plentiful opportunities to roll out IoT networks in multiple geographical
zones. The Group is to step up its sales drive to this customer segment in
coming months, combining a direct sales approach and the ramp-up of its network
of integrators and value-added service reseller partners.

Growth in value-added application services for connected objects

Revenue by Business Unit
In thousands of euros                     Q1 2018    Q1 2017   Change

Kerlink Infrastructure Solutions            3,057      2,943       4%
Kerlink Advanced Services                   1,535        927      66%
Total                                       4,592      3,870      19%

IFRS - Unaudited figures

At end-2017 the Group restructured its organisation around two strategic
Business Units, focused on the areas of business expected to drive the Group's
growth in coming years.

The first Business Unit, Kerlink Infrastructure Solutions, focuses on the sale
of turnkey solutions for the Group's IoT networks, including operator quality
infrastructures and services for managing and maintaining the operating
conditions of the networks it deploys.

The Kerlink Advanced Services Business Unit was set up to ensure the Group's
solutions rank among the leading value-added application services for connected
objects, either in complement to the Group's network solutions, or to round out
other providers' solutions used by prospective clients. Sales of application
services by this Business Unit grew 66% in the quarter to EUR1.5 million.
Growth came mainly from orders taken in late 2017.

Robust growth in Asia Pacific

Revenue by geographical area
In thousands of euros                 Q1 2018    Q1 2017    Change

NCSA (Americas)                            57         80      -29%
APAC (Asia-Pacific)                       981        155      533%
EMEA, excl. France                      1,026        779       32%
FRANCE                                  2,528      2,855      -11%
Total                                   4,592      3,870       19%

IFRS - Unaudited figures

The Group continued its international expansion. International revenue made up
44% of the total compared to 26% in Q1 2017. Its development in regions that
are investing heavily in IoT tracks the sequential roll-out of network
infrastructure projects.

In France, where strong sales with a leading operator in Q1 2017 created a
challenging comparison base, like-for-like revenue fell back slightly (-11%).

In the EMEA region, strong order book growth in the second half of the year
helped the group post sustained growth of 32% in the region, thanks notably to
the delivery of agreements with top players such as Digimondo (Germany),
Netemera (Poland) and Proximus (Belgium). Revenue in the region was over EUR1
million in Q1 2018.

In Asia-Pacific, subsidiaries KERLINK SINGAPORE PTE. LTD. and KERLINK IOT
SOLUTIONS INDIA PRIVATE LTD were created to serve this fast-growing market.
Revenue in this region is also nearing the EUR1 million mark for the quarter
and includes operational roll-out of the Tata Communications contract.

In the Americas, a market where the Group has only been active since September
2017, revenue remains marginal but should benefit from the Group's strong
reputation among major players as they continue to deploy their technology.

Outlook: 2018, primed for sustained growth

As regards the top line, the Group is enjoying healthy sales momentum, ensuring
clear visibility on infrastructure equipment revenues. Management and
maintenance services should also continue to penetrate the market, based on a
number of pilot operations under way.

The Reference Design service targets connected-equipment makers with a
differentiated value proposition, allowing them to streamline their product
design and significantly speed up time to market. Geolocation services are
attracting a lot of interest from prospects in several vertical segments -
industry, distribution, local authorities and operators.

In light of these favourable factors, Kerlink is confident in its ability to
continue delivering strong growth this year.

About Kerlink Group

Kerlink Group is a front-ranking international provider of end-to-end solutions
for the Internet of Things (IoT), addressing telecoms operators, businesses,
and public authorities worldwide. Its growing range of turnkey IoT services
ranges from network planning, to design and operations management, thereby
enhancing its offer of carrier-grade, market leading infrastructures. Widely
recognised for its expertise in IoT, the Group regularly unveils high
value-added, innovative services, such as geopositioning from the network, the
remote management of connected equipment, and low-consumption IoT reference
designs, enabling its clients to rapidly launch IoT devices on the market and
devise innovative business models for monetizing their deployments.

In just over 10 years, more than 100,000 Kerlink installations have been rolled
out in over 69 different countries. In 2017, Kerlink served more than 330
clients, including major telecoms operators, such as Tata Communications and
service providers such as GrDF and Suez. Kerlink's solutions equip IoT networks
worldwide, with major roll-outs in Europe, South Asia, South America and
Oceania. Kerlink is a co-founder and board member of the LoRaTM alliance and
has invested over EUR11m in research and development over the last three years.
In 2017, the Group generated nearly EUR25m in revenues, of which it derived
over 50% from international markets. Since 2013, Kerlink has been chalking up
annual average sales growth of more than 62%. Kerlink has been listed on the
Euronext Growth Paris market since May 2016. In 2017 Kerlink was listed on the
EnterNext PEA-PME 150 index of 150 fast-growing French SMEs and in April 2018
received the Tech 40 label, which recognises the top-performing tech SMEs on
Euronext's markets in Amsterdam, Brussels, Lisbon and Paris.

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

                                Upcoming events
     Revenue in the first half of 2018: 31 July 2018 after close of trade
                                www.kerlink.fr

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

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

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

www.kerlink.com        fr.linkedin.com/company/kerlink  Twitter @kerlink_news

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18/04/2024 18:00

KERLINK (EPA:ALKLK) - Kerlink : Q1 2018 revenue : €4.6m ; +19%.

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