2020, implying an adjusted EBITDA margin of 11.3 percent. Operating profit
(EBIT) was USD 1.0 million in the quarter, resulting in an Operating margin of
9.0 percent. Cash flow from operating activities was USD -3.2 million, compared
to USD -0.9 million in Q3 2020, as result of increased inventory to mitigate
semiconductor shortage and higher share of revenues coming late in the quarter.
“The third quarter was a continuation of the growth journey that Smartoptics is
on. The period was characterized by continued high activity, which resulted in a
solid 20 percent revenue growth for the quarter. Our adjusted EBITDA rose to USD
1.1 million, providing us with a healthy 11.3 percent EBITDA margin,” said
Magnus Grenfeldt, Chief Executive Officer of Smartoptics. “We continue to
experience high customer engagement levels and appreciation of our products both
in terms of network design and cost levels. We’ve been winning business both
with 100G, 400G (DCP-M line systems), as well as our newer products (DCP-R and
DCP-F) designed for a multitude of applications, including 5G mobile backhaul,
which is significant driver behind the ever-growing demand for bandwidth.”
Smartoptics’ customer base includes thousands of enterprises, governments, cloud
providers, Internet exchanges as well as cable and telecom operators in the
Nordics, U.S., Europe, and APAC. The products are based on in-house developed
hardware and software for optical data networks, enhanced through associated
“The underlying strong demand for Smartoptics’ products is reflected in the
record-high order booking figures in the third quarter. Orders booked amounted
to USD 15.2 million, an increase of 73 percent compared to Q3 2020. The increase
in orders booked is predominantly driven by good traction with large accounts,
especially in the U.S., and to some extent customers placing advance orders for
2022 delivery, spurred by uncertainties regarding component lead times,” said
While the global semiconductor shortage had a more significant impact on
Smartoptics during Q3 in the form of USD 0.5 million in delayed revenue, the
company maintained a positive and constructive dialogue with customers and there
were no cancellations of orders. Smartoptics expects supply constraints to
continue during the first half of 2022.
“We are prepared for a situation where the component shortage impact could
increase in the coming quarter resulting in delayed revenue. We estimate that
already-booked orders in the range of USD 3-5 million will be pushed into 2022.
However, even with this expected delay of shipments and revenues, we expect that
the 2021 full-year revenue growth compared with 2020 will end comfortably within
the communicated 20-35 percent range,” said Grenfeldt.
“Given the high level of business activity and solid underlying demand in the
market driven by increasing data traffic and the need for higher capacity, we
remain confident in achieving our long-term goals of growing revenue up to
around USD 100 million by 2025/2026, combined with increased profitability and
EBITDA margin of 15-18 percent,” Grenfeldt added.
Please find enclosed Smartoptics’ Q3 interim report and the presentation
material related to the report.
Smartoptics will host a presentation of the results by CEO Magnus Grenfeldt and
CFO Mikael Haag today, 12 November at 08:00 CET at DNB Markets, Dronning
Eufemias gate 30, Oslo. The presentation will be held in English and will also
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.
For further information, please contact:
+46 73-366 88 77
E-mail: [email protected]
Phone: +46 704 264 872
E-mail: [email protected]
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