The Brazilian supplier’s positive outcome is the result of the increase in sales of equipment based on DWDM technology.
Padtec Holding (B3: PDTC3), the sole shareholder of Padtec S/A, a leading manufacturer of optical transport systems, ended the first quarter of 2022 with gross operating revenue of R$ 93.7 million, a figure that represents a growth of 8.8% in relation to the same period last year. The DWDM (Dense Wavelength Division Multiplexing) technology-based equipment business unit represented 89% of the company’s revenue in this quarter, with a growth of 14.9% compared to the same period in 2021.
Compared to the last quarter of last year, the company’s operating income recorded a drop of 23.6%. According to Renato Jordão, CFO and Investor Relations director at Padtec, this is due to the typical seasonality of the sector in which the company operates. “Investments in this area tend to be lower in the first quarters of the year, as many companies are still completing their investment plans and budget allocation. Furthermore, in 2022, local and global macroeconomic factors such as rising inflation and interest rates and cost pressure on logistics chains are expected to be important challenges for the sector and for the business”, he clarifies. The company also ended the quarter with a net debt of R$1.7 million, compared to a total debt of R$78.3 million, reinforcing its solid capital structure.
Padtec invested R$ 10.6 million in research and development, or 14% of revenue, in the first quarter, maintaining the average investment in this area in recent years (around 13% of annual revenue). “Investing in technology is the differential that allows Padtec to remain competitive and always be on the frontier of knowledge in its area of operation”, highlights Roberto Nakamura, Padtec’s Chief Technology Officer.
This commitment to technological innovation, the result of massive investment in R&D, yielded an important result at the beginning of the year: the registration of three new invention patents at INPI – National Institute of Industrial Property. With that, the company reached the mark of six patents granted, out of a total of more than 15 filed.
Focusing on the potential of 5G technology in Brazil (and in the world), Padtec announced the signing of three financing contracts with resources from the Fund for the Technological Development of Telecommunications (FUNTTEL), of the Ministry of Communications, aimed at developing solutions for 5G networks. The agreement is part of the company’s strategy for the coming years, which aims to enter the 5G mobile communications market.
Carlos Raimar, CEO of Padtec, reveals that the company’s plans for the future include the continuity of conducting its business with a focus on growth in the local and international market, profitability and technological innovation for the development of new lines of products and services, with ever higher levels of competitiveness. “In this way, we will continue to pursue our purpose of offering increasingly advanced telecommunications solutions and services to the market”, he adds.
The full results report is available on the ‘Investor Relations’ page of the Padtec website (www.padtec.com.br/investor/padtec-holding/).