Smartoptics Group AS (SMOP) - Q4 2022: Strong growth and high margins

17 Feb 2023 06:00 CET

Oslo, 17 February 2022 - Smartoptics Group AS (OSE: SMOP) today reported
revenues of USD 18.1 million in the fourth quarter of 2022, up 45.2 percent from
the corresponding period in 2021 (USD 12.5 million), and an EBITDA margin of
19.5 percent, up from 14.7 percent in the fourth quarter 2021. EBIT margin was
17.3 percent compared to 11.4 percent same period last year.

"The fourth quarter was record breaking for Smartoptics both with regards to
revenue and profitability. We see a continued strong demand in the US and
European markets across all customer types, in particular communication service
providers (CSP) which grow faster than the enterprise and internet content
provider customers. This governs for continued growth, as the CSP market is by
far the largest addressable market for Smartoptics, driven by an ever-growing
demand for bandwidth and consequent network upgrades that result in a continuous
need to modernize and expand networks," said CEO of Smartoptics Magnus
Grenfeldt.

Smartoptics maintains its ambition of USD 100 million of revenue by 2025/26,
with EBITDA margin target of 17-20 percent.

"We are perfectly positioned for continued growth in an attractive part of the
market. Our open 400G solutions have been very well received in the market, and
we see that demand is increasing from large and established players. More than
30 percent of the revenue in the second half of 2022 came from products released
in the same period. Our new products come hot out of the gate and are in demand
from day one, which is key for continued growth in the years to come," said
Magnus Grenfeldt.

Smartoptics sources components for its network solutions on the global market
and has successfully managed the component shortage and supply chain issues
during the recent two years.

"The supply situation has continued to improve, and we have secured all critical
semi-conductor components required in the near term. During 2023 we expect to
return to a more normal operational situation with less requirement on high
inventory and thereby improved ability to generate cash," said Magnus Grenfeldt.

***

Investors, analysts and media are welcome to join a presentation today at 10:00
CET at Hotel Continental in Oslo.

The presentation will be held by CEO Magnus Grenfeldt and CFO Mikael Haag and
will also be available via a live webcast. Webcast viewers may submit written
questions during and after the presentation.

Date: Today 17th of February 2023
Time: 10:00 CET
Venue: Hotel Continental, Stortingsgaten 24/26, Oslo
Language: English
Webcast link: https://channel.royalcast.com/landingpage/hegnarmedia/20230217_6/

The report and presentation will be made available at www.smartoptics.com and
www.newsweb.no. A recorded version of the presentation will be available after
the live stream is concluded.

More information:
Access the news on Oslo Bors NewsWeb site

582791_Smartoptics_Q4_2022_report.pdf
582791_Smartoptics_Q4_2022_press_release.pdf
582791_Smartoptics_Q4_Financial_Presentation.pdf