Smartoptics Group AS

Smartoptics Group AS (SMOP) - Releases Annual Report 2023

Oslo, 17 April 2024 - Smartoptics, a leading provider of optical networking

solutions, today released its Annual Report 2023. The report is enclosed.

"Smartoptics continued its track record of growth combined with high margins in

2023, despite a slowdown in investments in the industry on the back of the bleak

macro economy. Our positive development is evidence of the attractiveness of our

products and services for our core business segment: Smaller communication

service providers, enterprises and internet content providers," said CEO of

Smartoptics Magnus Grenfeldt.

Revenue growth in 2023 was 2 percent, whereas the EBITDA margin remained strong

at 18.5 percent compared to 18.9 percent in 2022. At the same time, operating

cash flow was significantly improved compared to 2022.

"Despite moderate growth, the financial performance of the company is in line

with our long-term aspiration. The Board has proposed to pay a dividend of NOK

0.50 per share, in accordance with our dividend policy," said Magnus Grenfeldt.

During 2023, Smartoptics has taken important steps to further improve the way

the company is positioned for profitable growth in the years to come. The

underlying demand, driven by the ever-growing demand for bandwidth and

continuous needs to upgrade and expand networks remains strong.

"In 2024 we see several factors contributing to growth. We have reason to

believe in a regained market momentum in the USA. Additionally, we have a solid

line-up of major product launches that will improve our competitiveness for

large, regional network deployments. We are well positioned to attract

additional major accounts," Magnus Grenfeldt said.

"On this positive backdrop, assuming the market sentiment in our main markets

return to normal during 2024, we maintain our long-term ambitions of growing our

revenue up to USD 100 million by 2025/2026 and continue to produce strong

profitability with an EBITDA margin of 17-20% and EBIT margin of 13-16%," Magnus

Grenfeldt said.

For further information, please contact:

Magnus Grenfeldt, CEO

Phone: +46 733 668 877

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