Smartoptics Group AS

Earnings Release • Feb 13, 2025

Smartoptics Group AS (SMOP) - Q4 2024 financial results

Smartoptics Group AS (SMOP) - Q4 2024 financial results

Oslo, 13 February 2025 - Smartoptics Group AS (Smartoptics, OSE: SMOP) today

reported revenues of USD 16.9 million in the fourth quarter of 2024. This is a

growth of 22 percent compared to the fourth quarter of 2023. EBITDA was USD 2.4

million (2.3 million in the fourth quarter of 2023). The gross margin of 49.0

percent represented a sequential growth from 47.4 percent in the third quarter

of 2023 and a decline from 50.5 percent in the fourth quarter of 2023. The

EBITDA margin was 14.4 percent (16.8 percent), a sequential improvement from 8.3

percent.

"Smartoptics experienced substantial growth in the fourth quarter, driven by

strong market activity and an attractive product portfolio. After four soft

quarters, the 2H 2024 rebound was expected. We are pleased to see that our

efforts to attract new customers and launch new products have paid off," says

Magnus Grenfeldt, CEO of Smartoptics.

With an innovative approach to optical network solutions and devices,

Smartoptics operates in a market with strong positive trends. The main driver is

the ever-growing demand for bandwidth supported by factors like increased

internet streaming, more cloud computing and the AI explosion.

"One of the significant accomplishments in 2024 was the advancement of our

strategy to enhance our standing among major telecommunications operators and

corporations. Relevant new products and targeted sales work and relationship

building really paid off and contributed to the growth in the fourth quarter.

Looking ahead, we believe uncertainty in the market is reduced, and the

willingness to invest is to a large extent back among our customers," says

Magnus Grenfeldt.

Smartoptics' business model implies significant scalability, which led to the

improved EBITDA margin in the fourth quarter. In the medium to long-term,

Smartoptics targets EBITDA margins of 17-20 percent, and the ambition is to

reach USD 100 million of annual revenue by 2025/2026.

The Smartoptics Board of Directors intends to propose to the Annual General

Meeting 8 May 2025 a dividend of NOK 0.60 per share, increased with NOK 0.10

since last year.

-ENDS-

Quarterly Presentation

Smartoptics will host a presentation of the results by CEO Magnus Grenfeldt and

CFO Stefan Karlson today at 10:00 CET at Hotel Continental in Oslo. The

presentation will also be streamed live.

Date: Thursday 13 February 2025

Time: 10:00 CET

Venue: Hotel Continental, Oslo

Language: English

Link: https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20250213_7

The report and presentation will be made available at smartoptics.com and

www.newsweb.no. A recorded version of the presentation will be available after

the live stream is concluded.

For more information please contact

Magnus Grenfeldt

CEO

Smartoptics

+46 73-366 88 77

E-mail: magnus.grenfeldt@smartoptics.com

This information is subject to the disclosure requirements pursuant to Section 5

-12 of the Norwegian

Securities Trading Act.

About Smartoptics

Smartoptics provides innovative optical networking solutions and devices for the

new era of open networking. Our customer base includes thousands of enterprises,

governments, cloud providers, Internet exchanges as well as cable and telecom

operators. We have an open networking approach in everything we do which allows

our customers to break unwanted vendor lock-in, remain flexible and minimize

costs. Our solutions are used in metro and regional network applications that

increasingly rely on data center services and specifications. Smartoptics is a

Scandinavian company founded in 2006. We partner with leading technology and

network solution providers such as Brocade, Cisco and Dell and have a global

reach through more than 100 business partners.

For additional information about Smartoptics, please visit

smartoptics.com/ (https://www.smartoptics.com/)