KERLINK (EPA:ALKLK) - Kerlink : 2019 turnover: €13.0m. Pursuit of strategic repositioning to revive growth from 2020.

Transparency directive : regulatory news

12/02/2020 17:45

2019 turnover: EUR13.0m
           Pursuit of strategic repositioning to revive growth from 2020

                                    PRESS RELEASE
                  Thorigné-Fouillard, 12 February 2020, 5.45 p.m.

Thorigné-Fouillard, France - Kerlink (ALKLK - FR0013156007), a specialist in
solutions dedicated to the Internet of Things (IoT), published its 2019 revenue
today.

Revenue
by business (EURK)
                       H2 2019   H1 2019    Change    2019     2018    Change
Historic & alternative
telecom operators       1,232     1,103      +12%    2,335    6,550    -64%
Private operators       5,205     5,181     +0.5%   10,386   10,192     +2%
Reference design          139       178      -22%      317      326     -3%
Total                   6,576     6,462       +2%   13,038   17,068    -24%
IFRS - Unaudited figures

Revenue for the 2019 financial year was down 24% compared to 2018.
As explained previously, 2018 saw the second stage of the IoT network roll-out
for Tata Communications, one of India's foremost telecom operators. Adjusting
for sales of infrastructure equipment for this exceptional contract in 2018, FY
2019 revenue declined only slightly (-4%).

In the private operators segment, where clients prefer to implement proprietary
IoT networks, 2019 revenue inched up 2% to EUR10.4m. To step up its growth in
this segment, the Group extended its partner ecosystem in 2019, enabling it to
offer the end-to-end solutions expected by such players.

Second-half revenue (EUR6.6m) grew slightly (+2%) relative to H1 (EUR6.5m).

Stronger contributions from value-added services

Revenue from services (operation and maintenance in operating condition of IoT
networks, administration and geolocation of connected equipment, Reference
Design expertise, and professional services) came to EUR3.3m in 2019, up 10% on
like-for-like basis.
At the end of 2019, revenues from these value-added services accounted for 25%
of total revenue. This shift should translate positively into full-year gross
margin.

Sales of equipment declined 31%, chiefly as a result of the sizeable deliveries
made to Tata Communications in 2018, with no equivalent project in 2019.

Revenue growth in Europe

The Group generated 40% of its revenue in international markets in 2019.

Revenue by
by geographic region (EURk)
                  H2 2019  H1 2019  Change   2019   2018    Change
NCSA (Americas)     189       112    +69%     301    428     -30%
APAC (Asia-Pacific) 547       343    +59%     890  4,309     -79%
EMEA excl. France 2,115     1,986   +6.5%   4,101  3,339     +23%
FRANCE            3,723     4,022     -7%   7,745  8,992     -14%
Total             6,576     6,462     +2%  13,038 17,068     -24%
IFRS - Unaudited figures

In the EMEA zone (Europe, Middle East, and Africa), excluding France, Kerlink
chalked up revenue growth of 23% relative to 2018. The momentum seen at
year-end has become a firm trend heading into H1.

The NCSA (Americas) region also saw revenue growth on the second semester. This
notably included the first revenue streams from the multi-year Network as a
Service (NaaS) contract signed with IoT America. Such all-in-one contracts,
combining infrastructure equipment and high value-added services, are a source
of recurrent revenue for the duration of the contract.

Revenues in the APAC zone (Asia-Pacific) were subject to an unfavourable
comparison base due to the contract in India in 2018. Asia remains a
high-potential region for the Group, also harbouring bright business
prospects.

In France, 2018 revenue included substantial deliveries to a top-tier telecom
operator. Adjusting for these deliveries, the Group cemented its positions in
its domestic market.

On the announcement of these figures, Kerlink's Chairman and Chief Executive
Officer, William Gouesbet said: "2019 signalled the end of the Group's first
development cycle. Strong decisions were made over the course of the year,
bringing profound transformation. In early 2019, Group began strategically
repositioning to serve private operators, by offering comprehensive vertical
solutions. The market now looks promising again and is already taking shape,
with Kerlink signing several new contracts, confirming the wisdom of this new
strategy. The position we have acquired in the IoT ecosystem, thanks to the
quality of our products and services, is an advantage that will help us return
to growth in 2020."

About Kerlink

Kerlink Group is a leading global provider of connectivity solutions for
designing, launching, and operating public & private Internet of Things
networks.  Its comprehensive product portfolio includes industrial-grade
network equipment, best-of-breed network core, operations and management
software, value-added applications and expert professional services, backed by
strong R&D capabilities. Kerlink specializes in enabling future-proof
intelligent IoT connectivity for key verticals such as fleet management,
transportation & logistics, retail, asset tracking, and smart metering, as well
as smart agriculture & environment, and smart cities, buildings, and factories.
More than 120,000 Kerlink installations have been rolled out with more than 330
clients in 69 countries. Based in France, with subsidiaries in the US,
Singapore, India, and Japan, Kerlink is a founding and board member of the LoRa
Alliance(TM) and the uCIFI Alliance(TM). It is listed on Euronext Growth Paris
under the symbol ALKLK.

For more information, visit www.kerlink.com or follow us on Twitter
@kerlink_news.

Upcoming events
2019 annual results & Q1 2020 revenue
28 April 2020, after market close

www.kerlink.fr

Investor contact:        Financial Press contact:
Actifin                  Actifin
Benjamin Lehari          Isabelle Dray
+33 (0)1 56 88 11 25     +33 (0)1 56 88 11 29
blehari@actifin.fr       idray@actifin.fr

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

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

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KERLINK (EPA:ALKLK) - Kerlink : 2019 turnover: €13.0m. Pursuit of strategic repositioning to revive growth from 2020.

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