Closure of the Ekinops R&D center in Brazil

PARIS, Nov. 12, 2024 /PRNewswire/ -- EKINOPS (Euronext Paris – FR0011466069 – EKI), a leading supplier of telecommunications solutions for telecom operators and enterprises, announces the closure of its wholly-owned Brazilian subsidiary – Ekinops Brasil, located in Campinas, near São Paulo – by the end of 2024. Ekinops Brasil was one of two research and development (R&D) sites dedicated to the Optical Transport business.

Comprising 25 engineers, this R&D site was a carve out acquisition of OTN (Optical Transport Network) technology from Padtec in 2019. Ekinops Brasil is not engaged in any commercial activity in Brazil.

Optimizing Ekinops' R&D organization and cost structure

The closure of Ekinops Brasil reflects both an ambition to refocus the Group's R&D and optimize its operating performance. This decision will enable Ekinops to save around 3 m€ a year in operating expenses.

Ekinops will further prioritize efforts at its R&D center in Lannion, leveraging its technological expertise and strengthening its commitment to innovation within its brand new modern headquarters opened in May 2024, that can accommodate double the current workforce in Lannion.

This measure will have a non-recurring accounting impact on FY 2024 consolidated financial statements, with provisions and asset impairments amounting to approximately 8.0 m€ (unaudited), mainly relating to intangible assets, goodwill and inventories. This non-cash and non-recurring expenses will be booked in Other operating income and expenses.

Non-recurring expenses incurred in connection with the closure of Ekinops Brasil are estimated at around 1 m€ and will also be booked in Other operating income and expenses in FY 2024.

EKINOPS Contact

Didier Brédy, Chairman and CEO
[email protected]

Investors

Mathieu Omnes, Investor relation
Tel.: +33 (0)1 53 67 36 92
[email protected]

Press
Amaury Dugast, Press relation
Tel.: +33 (0)1 53 67 36 74
[email protected]

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SOURCE Ekinops