KERLINK (EPA:ALKLK) - Revenue at 30 September 2021

Transparency directive : regulatory news

21/10/2021 17:45

Revenue at 30 September 2021
Sales growth: +44% over the same period in 2020
Strong acceleration expected at the end of the year 2021 targets confirmed

PRESS RELEASE
Thorigné-Fouillard, 21 October 2021, 5:45pm.

Thorigné-Fouillard, France - Kerlink (AKLK - FR0013156007), specialising in
IoT networks and solutions, is today publishing its revenue at 30 September
2021.

At the end of the first 9 months of the year, sales amounted to EUR10.8m, up
44% over the same period in 2020. Despite the pace of order execution being
hampered by supply issues for certain electronic components, the 3rd quarter
posted still solid growth. Revenues totalled EUR3.2m over the period, an
increase of 17%.

It should be noted that Q3 2021 includes a more demanding comparison base. As a
reminder, the same period in 2020 already started to see a gradual pick-up in
activity.

In addition to the solid growth in activity, the 3rd quarter was also marked by
the continued very good momentum in the order intake, ensuring high visibility
on growth in the coming months. Against this backdrop, a record level of
activity is already expected in the 4th quarter of the year. In light of these
factors, Kerlink confirms the revenue target, which is expected to be between
EUR16m and EUR19m for the full year, as previously announced. The achievement
of this target would be a remarkable performance given the unprecedented
context of tensions on semiconductor and raw material supplies affecting all
global industrial and technology players.

Strong growth in activity with private operators and increase in the
contribution of service revenues

Revenue by business line
In thousands of euros
                  Q3 2021 Q3 2020  Change  Reminder  As at 30/09 As at 30/09
                                           Q3 2019      2021         2020

Private operators  2,825    2,269   +24%    2,235       9,672        6,300
Historic &
alternative
telecom operators    355      452   -21%      692       1,086        1,187
Total              3,180    2,721   +17%    2,927      10,758        7,487

Change        Reminder
           As at 30/09 2019

53%             7,593
-8%             1,795
+44%             9,389

IFRS - Unaudited 2021 figures

Revenue by type of sale
In thousands of euros
                  Q3 2021 Q3 2020  Change  Reminder  As at 30/09 As at 30/09
                                           Q3 2019      2021         2020

Equipment           2,193   1,950   +12%     2,155      8,202        5,134
Services              987     771   +28%       772      2,556        2,353
Total               3,180   2,721   +17%     2,927     10,758        7,487

Change        Reminder
           As at 30/09 2019

+60%             6,970
+9%             2,419
+44%             9,389

Private network operators accounted for nearly 90% of the Group's revenues at
the end of September, with revenues close to EUR10m. This performance once
again illustrates the success of the Group's strategic shift towards this
target, based on distribution partners, located around the world, and recurring
revenues with certain long-standing customers.

The quarterly revenue of value-added services rose 28% to nearly EUR1m over the
quarter. At the end of September, revenues from services had increased by
nearly 10%.

Growth in all geographical regions

Revenue by geographic region
In thousands of euros
                  Q3 2021 Q3 2020  Change  Reminder  As at 30/09 As at 30/09
                                           Q3 2019      2021         2020
NCSA
(Americas)           347     140   +148%      98        1,66         1 263
APAC
(Asia Pacific)       299     210    +42%     287         786           553
EMEA
(Europe, Middle
East, Africa)      2,534   2,371     +7%   2,542       8,311         6,671
Total              3,180   2,721    +17%   2,927      10,758         7,487

Change        Reminder
           As at 30/09 2019

+531%            210
+42%            629
+25%          8,550
+44%          9,389

IFRS - Unaudited 2021 figures

In the Americas region, the positive trend in sales can be attributed mainly to
revenue from the partnership with Cal-Chip Connected Devices for the roll-out
of the Helium project.

In the APAC region (Asia-Pacific), despite persistent health restrictions in
some countries, the Group has managed to extend its offering to new customers,
with an encouraging order intake momentum.

In the EMEA region (Europe, Middle East, Africa), revenue rose to EUR2.5m due
to the increase in sales to private operators.

Confirmation of 2021 outlook

Given the quality of the order book currently in the execution phase, the 4th
quarter will see a strong increase. As anticipated, however, the performance
for the period will be dependent on the availability of electronic components
commensurate with the production needs to be covered in order to meet all
customer requests. In an exceptional context, Kerlink reaffirms its growth
target by confirming the achievement in 2021 of revenue of more than EUR16m,
with a level of activity that could reach up to EUR19m depending on the
evolution of this situation, which is currently weighing on all global players
in the electronics sector.

This increase in activity is accompanied by an appropriate pricing policy and
an upward adjustment in sales prices to pass on the increase in certain
purchase prices observed today on the global component markets.

In addition to this expected growth in activity, the 2021 financial year should
also see strong growth in earnings.

Kerlink is also preparing for the future with the commercial launch of the new
indoor gateway Wirnet(TM) iZeptoCell(1). Capable of reducing the estimated
costs of deploying an IoT network by up to 25%, the design of this new offering
combining natively equipment and operating interfaces could mark a new stage in
the deployment of networks serving a considerable number of connected objects
and sensors, the Massive IoT. The first sales are expected during the 4th
quarter for the Ethernet version, with take-off expected in 2022 and the
arrival of the cellular version.

(1) See press release of October 19, 2021 "Kerlink Launches New Indoor
LoRaWAN(r) gateway featuring' brand new operational approach critical for
Massive IoT: Wirnet(TM) iZeptoCell"

About Kerlink

Kerlink Group is a leading global provider of end-to-end connectivity solutions
for designing, deploying, and operating public & private low power/wide area
(LPWA) Internet of Things (IoT) 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 three major domains:
Smart City & Quality of Life - urban operations, utilities & metering, retail &
public places, infrastructure & hubs, health; Smart Building & Industry -
buildings & real estate, industry & manufacturing, asset monitoring & tracking,
and Smart Agriculture & Environment - precision agriculture, cattle monitoring
& farming, environment & climate, and wildlife protection. More than 140,000
Kerlink installations have been rolled out with over 350 clients in 70
countries. Based in France, with subsidiaries in the US, Singapore, India and
Japan, Kerlink is a co-founder and board member of the LoRa Alliance(r) 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 our social media -
Twitter @kerlink_news.

Upcoming events

2021 Full Year Revenue: January 27, 2022, after market close

Investor 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
Youtube Kerlink

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