KERLINK (EPA:ALKLK) - First-half 2020 revenue: €4.8m, -26%

Transparency directive : regulatory news

23/07/2020 18:00

First-half 2020 revenue: EUR4.8m, -26%
COVID-19 outbreak takes a toll on business activity in H1
Encouraging rally since June

PRESS RELEASE
Thorigné-Fouillard, 23 July 2020, 6:00 p.m.

Thorigné-Fouillard, France - Kerlink (ALKLK - FR0013156007), a French
specialist in solutions dedicated to the Internet of Things (IoT), published
its first-half 2020 revenue today.

Revenue by business line
In thousands of euros      Q2 2020   Q2 2019   Change  H1 2020  H1 2019 Change

Historic and alternative
telecom operators           270         561       -52%      790   1,103   -28%
Private operators         1,822       2,852       -36%    3,806   5,181   -27%
Reference design             63          60        +5%      169     178    -5%
Total                     2,155       3,473       -38%    4,765   6,462   -26%
IFRS - Unaudited figures

Group business activity declined in the first half of 2020 against an
unprecedented economic backdrop and health crisis. The slump, which was a
direct result of the COVID-19 outbreak and was primarily concentrated in
France, stemmed from postponements of orders that were due for delivery in Q2.

In spite of this context, the Group did not lose any client during the period.

Business activity has been picking up since June, with projects that were
temporarily put on hold starting up again and Kerlink winning new clients.

Business activity hit by health crisis in Q2
Encouraging signs of restart since June

This unprecedented situation caused a slump in business activity during the
second quarter, both in the historic and private telecoms operator segments,
bringing Kerlink's sales growth to a temporary standstill in this priority
target market. Nevertheless, and to ensure conditions are optimum in
preparation for the recovery, the Group has been pushing ahead with its
proactive strategy of strengthening its ecosystem of partners capable of
offering its private operator clients end-to-end vertical solutions to speed up
the adoption and roll-out of IoT solutions in targeted vertical sectors.

Revenue by type of sale
In thousands of euros      Q2 2020   Q2 2019   Change  H1 2020  H1 2019 Change

Equipment                   1,451     2,753     -47%     3,184    4,815   -34%
Services                      704       720      -2%     1,581    1,647    -4%
Total                       2,155     3,473     -38%     4,765    6,462   -26%
IFRS - Unaudited figures

The Services line, which the Group has been driving to expand in recent months,
generated EUR1.6 million in revenue and accounted for 33% of total sales over
the period. The decline in first-half revenue from Services was under control,
at 4% relative to the year-earlier period.

Revenue by geographical region
In thousands of euros      Q2 2020   Q2 2019   Change  H1 2020  H1 2019 Change

NCSA (Americas)                 51        87     -41%       124     112   +11%
APAC (Asia-Pacific)            158        68    +132%       341     343    +1%
EMEA excl. France              712     1,141     -38%     1,827   1,986    -8%
International                  921     1,296     -29%     2,292   2,441    -6%
France                       1,234     2,177     -43%     2,473   4,021   -38%
Total                        2,155     3,473     -38%     4,765   6,462   -26%
IFRS - Unaudited figures

Business momentum was favourable in the Americas at the start of the year.
Order intake increased, in step with intensified efforts on the sales front.
Sales were up, despite the slowdown in the second quarter due to the economic
and health crisis.

In Asia, the upturn in business activity at the end of the second quarter is
encouraging. Business activity in France and Europe was worse affected by the
introduction of lockdown restrictions.

Despite reduced visibility on the timescale for a return to normal conditions,
over the next few months the Group will be able to leverage the advantages of
having a fully-integrated business model, combining the sale of some of the
world's best network equipment with a range of value-added network services.
Its advanced solutions for verticals, such as Facility Management and Contact
Tracing, are particularly relevant in the current context. These should drive
growth in revenue from sales of services over the coming months and bolster the
Group's competitive positioning as soon as the crisis is over, helped by
strengthened marketing efforts, notably across digital channels, to adapt to
the current state of play.

The Group's firm hand on its finances will help it through this period, with a
stronger cash position at end-June 2020 than at end-December 2019. This cash
does not include the French state guaranteed loan (PGE), the application for
which is currently being processed.

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

                             Half-year results:
                   24 September 2020, after market close

                                 Q3 revenue
                    22 October 2020, after market close
                              www.kerlink.com

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

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

Kerlink press & market analysts contact:
Mahoney Lyle
Sarah Lyle
+33 (0)6 75 85 60 42
slyle@mahoneylyle.com

www.kerlink.com   Linkedin kerlink  Twitter @kerlink_news  You Tube kerlink

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KERLINK (EPA:ALKLK) - First-half 2020 revenue: €4.8m, -26%

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