Smartoptics Group AS

Earnings Release • Feb 17, 2023

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

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

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.