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Padtec ends 2016 with positive performance and plans to grow in 2017

Brazilian company of optical solutions reaps the results of the strategic alignment adopted in 2015 and announces optimistic goals.

Padtec, the largest manufacturer of optical transport systems in Latin America, closed the year 2016 with revenues around US$ 100 million, improvement in financial indicators and expectation of growth in 2017. The good performance is the result of a set of measures adopted by the company since 2015, aimed at restoring the economic and financial balance of its activities – affected by the economic slowdown in Brazil.

As a result of these efforts, Padtec’s cash flow improved significantly in 2016. The company’s indebtedness, for example, decreased about 50%, between the beginning of 2015 and the end of 2016. With the improvement in EBITDA*, Padtec not only generated cash but also operated in blue in 2016, presenting net profit. For Manuel Andrade, Padtec’s CEO, “this result is mainly due to the combination of the progressive effort to reduce costs through the sale of products with a high technological content, which allow greater margins”.

At the same time, the demand for DWDM (Dense Wavelength Division Multiplexing) solutions grew in 2016, fueling the company’s business. In addition to major operators, Internet service providers (ISPs) and over-the-top services (OTTs), state data-processing centers and utilities with OPGW networks have also contributed to the increase in demand. “By 2014, this group of companies was fourth in our list of customers. In 2016, it passed to the first place. Currently, about 70 active customers are part of this group”, says Argemiro Sousa, Padtec’s Business Director. “We closed 2016 with sales volume 10% higher than 2015. This milestone is also due to Padtec’s entry into the submarine optical transmission market and the technological partnerships made throughout the year – such as the one signed with Rede Globo, for the first live broadcast with 8K resolution open to the public in Brazil, at the Museum of Tomorrow (RJ), in August”, he add.

In the research and development’s area, the company’s efforts have resulted in the development of state-of-the-art products – with a more compact architecture and lower energy consumption – in line with international technology trends in this area. Also in 2016, Padtec joined the select submarine optical transmission market, providing for Google the high-speed network that will link Rio de Janeiro and Santos. “The increase in bit rate with channels operating at 200 Gb/s and the OTN Switch, which adds flexibility to DWDM optical transmission networks, should be the main lines to be followed in launching new products”, said Roberto Nakamura, Padtec’s Director of Technology.

*Ebitda: Earnings Before Interest, Taxes, Depreciation and Amortizations.