The Brazilian supplier’s improved performance 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 2020 with gross operating revenue of approximately R$ 318 million, representing a growth of 21.7% compared to the previous year.
This improved performance in 2020 is a result of the 32.1% growth in sales volume of its optical transport equipment business unit which is based on DWDM (Dense Wavelength Division Multiplexing) technology. This growth, which had already started with the increase of the use of fiber optic networks for residential and 4G applications, was accelerated by the social isolation requirements resulting from the Covid-19 pandemic. The pandemic demanded more services and greater transmission capacty from communications networks to meet the increased connection needs between people and their families and also between companies and their employees, customers and partners, for videoconference meetings and cloud based applications, which have grown significantly.
Argemiro Sousa, Padtec’s Business Director, says that the market as a whole has been quite heated throughout the year and highlights the increased investment in network infrastructure by regional service providers (ISPs). “Regional providers reached the end of 2020 as they started – growing. Our revenue for this group of companies grew by 60% last year”, he says. “We ended the year with the number of DWDM equipment customers – in Brazil and abroad – about 70% higher than at the end of 2019. In our telecommunications network operation and maintenance services business unit, the total number of customers grew by 36%”, adds Argemiro.
Also improving Managerial EBITDA*, Padtec not only generated cash, but also continued operating in the black, closing the year with a net profit** of R$ 16.3 million – an increase of 39.2% compared to 2019. The company also remains without net debt. “This result is mainly a consequence of the company’s continuous effort to maintain its operational efficiency to preserve its economic-financial balance”, assesses Renato Jordão, Padtec’s CFO and Investor Relations director.
In the research and development area, Padtec invested R$ 35.8 million of its revenue in the evolution of its product line for high performance optical communications systems. “Investment in technology is the differential that allows Padtec to remain competitive and at the frontier of knowledge in its area of operation”, highlights Roberto Nakamura, the company’s Director of Technology. “One of the results of our high investment in R&D, for example, was the launch, in 2020, of the new generation of 800 Gb/s and 1.2 Tb/s transponders, a very high capacity data transmission solution that meets the a trend of increasing demand for bandwidth not only in the networks of communication service operators but also in the interconnections between data centers”, adds Nakamura.
Carlos Raimar, Padtec’s CEO, says that the company’s plans for the coming years include the continuation of investments in the development of products with cutting-edge technology, the expansion of leadership in the Brazilian market and the increase of its international presence. “To accomplish this, one of the most important missions we have ahead of us is to continue to conduct Padtec’s business with a focus on growth, profitability and technological innovation, increasing its competitiveness at ever higher levels”, states the executive.
The full results report is available on the ‘Investor Relations’ page of the Padtec website (www.padtec.com.br/investor/padtec-holding/).
Photo: Padtec Headquarters (Campinas, Brazil)