Ekinops Launches Innovative 'Bridge' Plan to Enhance Market Reach
Ekinops Launches Innovative Strategic Plan: Bridge
Leading telecommunications solutions provider EKINOPS (Euronext Paris - FR0011466069 - EKI) has unveiled its latest strategic initiative called Bridge, aimed at reinforcing its leadership in the rapidly evolving market segments. This visionary plan, initiated in late 2024, focuses on both the Access and Optical Transport divisions.
Strengthening Core Product Lines
The Bridge initiative aims to solidify Ekinops' position in the fast-paced markets relevant to its product lines. This strategic direction is not merely an internal restructure but a comprehensive effort to elevate the company's status as an integrated telecommunications solutions provider. Ekinops is poised to supply a wide range of innovative equipment, software, and related services, aiming to qualify for the most significant projects undertaken by telecom operators and enterprises.
Elevating the Optical Transport Segment
In Optical Transport, Ekinops seeks to leverage its established expertise in Metro Optical Transport and Wavelength Division Multiplexing (WDM) products. Through the Bridge strategy, the company not only plans to enhance its market presence in Longhaul solutions but also aims to make significant strides in the expanding Data Center Inter Connect (DCI) segment. This segment is rapidly growing due to increased demand for new data centers tailored for artificial intelligence (AI) applications and other emerging technologies.
Bridge will introduce innovative optical solutions featuring new chassis and management software, such as OneOS6, complemented by a suite of advanced modules. Such initiatives are designed to give Ekinops a competitive advantage in a market projected to achieve a compound annual growth rate (CAGR) of +13% to +20% in the upcoming years.
Expanding the Reach in Access Solutions
With over four million routers already deployed, Ekinops enjoys the confidence of numerous Tier 1 telecom operators. Its success can be attributed to the distinctive approach of “One Box, One OS,” delivering superior connectivity experiences via a singular router system. Through Bridge, Ekinops aims to penetrate the network cybersecurity domain, known as Secure Access Service Edge (SASE). The company is determined to be a pioneer in delivering all connectivity and security services within a unified framework.
This venture will build upon Ekinops’ proven SD-WAN solutions while integrating Secure Service Edge functionalities. Initially, enhancements to the OneOS6-integrated firewall will be implemented, setting the stage for the development of a Software as a Service (SaaS) solution to secure web traffic for enterprises and their mobile users. This comprehensive approach targets a sector expected to grow annually between +13% and +28% within the next few years.
Focused Growth and Strategic Leadership
Through the Bridge plan, Ekinops is committed to prioritizing growth while anticipating a market recovery expected by all stakeholders. This approach is aimed at setting the foundation for revenue resurgence particularly in the North American market, which remains challenging yet full of potential.
The financial year 2025 marks the commencement of the Bridge plan implementation phase. In a move to strengthen leadership capabilities, Ekinops announced Harald Bock as the new Chief Product Officer, effective from February 1, 2025. Bock brings a rich background in telecommunications innovation and strategy, having previously driven product development at numerous recognizable firms.
Realizing Commercial Potentials
The new products emerging from the Bridge strategy will be designed with the existing customer base in mind. This alignment is expected to unlock significant commercial synergies as operators can upsell new products to their clients, positioning themselves strategically within adjacent, high-growth areas such as DCI and cybersecurity.
Additionally, resources dedicated to research and development are being reshaped to align with these new initiatives. Investments in developing DCI and SASE solutions are proceeding without an increase in overall R&D spending, showcasing a commitment to efficient growth.
Aiming for Sustained Profitability and Growth
Ultimately, Ekinops aims to reestablish double-digit revenue growth through Bridge, with a goal of generating over 30% of its annual revenue from Software and Services by 2028, including a significant portion from annual recurring revenue. This growth strategy will incorporate both organic enhancements and acquisitions, driven by the company’s solid financial footing and proven market capabilities.
The company aspires to reach an EBITDA margin approaching 20%, further solidified by a robust commitment to corporate social responsibility, which is integrated into the Bridge strategy.
Frequently Asked Questions
What is the main goal of Ekinops' Bridge plan?
The Bridge plan aims to strengthen Ekinops' leadership in fast-growing market segments specifically for its Access and Optical Transport product lines.
How will Ekinops enhance its Optical Transport products?
Ekinops will introduce new optical solutions incorporated with advanced chassis and management software to enhance its presence in the DCI segment.
What cybersecurity initiative is part of the Bridge plan?
The plan includes entering the SASE market, allowing Ekinops to offer comprehensive connectivity and secure telecom services.
Who has been appointed as the Chief Product Officer for Ekinops?
Harald Bock has been appointed as the Chief Product Officer, bringing extensive experience in telecommunications innovation.
What are the projected growth goals for Ekinops through the Bridge plan?
Ekinops aims for double-digit growth with over 30% of annual revenue coming from Software & Services by 2028.
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