Padtec Holding (B3: PDTC3) – the sole shareholder of Padtec S/A, a leading manufacturer of optical transport systems – ended the second quarter of 2024 with a significant improvement in its results, compared to the previous quarter. Net revenue in the period reached R$ 68.5 million, a figure that represents an increase of 17.3% compared to the first quarter; the gross margin reached 31.5% (in the previous quarter it was 25.5%) and EBITDA totaled R$ 6.3 million in the second quarter.
The improvement in relation to the results of the first three months of the year is a consequence of the combination of growth in net revenue recorded in the second quarter – mainly due to the significant increase in revenue from the foreign market – with measures previously implemented by the company to face challenges in the telecommunications market. These measures include the renegotiation of contracts with suppliers, as well as cost adjustments in the workforce and in the cost of raw materials.
“Padtec’s debt restructuring carried out in the first half of the year, which resulted in an extension of maturity dates, is also an important factor, allowing the company to maintain cash with greater liquidity availability and providing room to support its organic and inorganic growth,” says Carlos Raimar, CEO and Investor Relations Officer at Padtec. “The current capital structure allows the company to conduct its operations in a safe and sustainable manner, which enables it to accelerate its growth in new geographies, offer financing to its customers and develop new products and solutions to increasingly better meet the demands of the telecommunications ecosystem”, he adds.
With this focus in mind, Padtec launched the first product in its new generation of LightPad Max transponders in June, which aims to meet market demands for ever-increasing data transmission capacity. The new product is a standalone dual transponder with two line interfaces of up to 1.2 Tb/s and a total capacity of 2.4 Tb/s per channel, for use over medium, long and ultra-long distances. Its differential, in relation to previous generations of transponders, is the lower cost per bit transmitted in coherent optical systems, with high energy efficiency.
Another launch by the company was a line of coherent pluggable transceivers, compact in size, with low power consumption and a capacity of 400 Gb/s, which can be used in transponders and also in routers from different suppliers. Padtec has set up a specific manufacturing unit to produce its own pluggable transceivers, which will initially be intended for internal consumption. The intention is that, indirectly, these products can help increase the presence of the company’s DWDM (Dense Wavelength Division Multiplexing) solutions in metropolitan networks, as well as in hyperscale and edge data centers.
As part of its strategy to diversify its revenue sources – by operating in new market segments –, Padtec has entered into a commercial partnership with Arrcus, a US company that operates as a software provider for large data centers (hyperscale), edge network infrastructures and multi-cloud routing and switching. The goal is to integrate Arrcus’ network operating system (ArcOS) into the line of IP switches and routers sold by Padtec throughout Latin America – through a partnership with UfiSpace, from Taiwan –, complementing its portfolio in this area and entering these new market segments.
The data center market is also the focus of the partnership announced by Padtec with Trusted Data, aiming to offer a complete solution for this segment, which starts with a single rack – and can grow to hundreds – and includes a remote, real-time management platform for the entire network environment. To achieve this, the solution combines Padtec’s Smart Site platform, aimed at the complete remote management of operator and service provider (ISP) sites, with SmartPOP, a rack-based data center solution from Trusted Data.
Another important partnership was announced by Padtec with Satelital, a telecommunications company from Peru, with the aim of offering a complete solution for the construction and maintenance of submarine and subriver networks in Latin America. Announced in June, the partnership already has its first client: Global Fiber, a telecommunications service provider specializing in fiber optics that operates in Peru and Brazil. Padtec and Satelital were chosen as the main suppliers of the submarine solution for the festoon network (which connects several points along the coast, without intermediate amplification) that Global Fiber is implementing between the capitals of Belém (Pará state) and Fortaleza (Ceará state).
Padtec’s portfolio of digital services and solutions also grew in the second quarter. During the Abrint National Meeting, held in June, the company presented two important launches for internet and telecommunications providers. One of them is Smart Workspot, an online platform for managing field work teams (Workforce Management, or WFM) that work in network operations and maintenance. The other new product is InovaTec, an innovation consultancy dedicated to the telecommunications market, provided by a multidisciplinary team that uses a methodology tested and approved by Padtec over the years.
As part of its geographic expansion strategy, Padtec announced the launch of a new Premium Services unit in Colombia – the first outside of Brazil. The focus of this new business line is to offer a series of specialized services to meet the needs of the telecommunications sector, such as diagnostics and calibration of optical networks, specialized outsourcing, advanced training, NOC services and network certification, among others. The services have been available since July 1.
The full results report is available on the ‘Investor Relations’ page of the Padtec website (www.padtec.com.br/investor/padtec-holding/).
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