04.11.2022 - ICT, Technology

Mikrotīkls turnover grows by 5.9%

The turnover of the data communication systems manufacturer Mikrotīkls reached 374.6 million euros in 2021, which is 5.9% more than a year earlier. The company’s profit after tax was 90.58 million euros, according to the annual report available on Lursoft.

Last year, Mikrotīkls paid 27.77 million euros in taxes into the general state budget and employed 343 people. The true beneficiaries of Mikrotīkls, registered in 1996, are Arnis Riekstiņš and John Martin Tully.

In the first half of 2021, Mikrotīkls made major deliveries of high-speed home-connection equipment for orders received in 2020, due to the massive shift to remote working as a result of the Covid-19 pandemic. Demand in the hospitality segment increased in the second half of the year, driven by the impact of the Covid-19 pandemic being mitigated by increased vaccination coverage, according to Klientuportfelis.lv (Client Portfolio).

In the management report, the company said demand for high-performance data transmission equipment continues to grow this year. To meet this demand, Mikrotīkls launched a range of innovative products in the first half of the year, including high-speed routers and high-capacity switches with 100 Gbps ports, as well as next-generation 60 BHz devices for wireless data transmission.

Mikrotīkls has indicated that its operations will be impacted and turnover will be reduced by the increased production restrictions in China in spring 2022 in the context of the Covid-19 zero tolerance policy, which has had an impact on supply chains worldwide. The company will also be affected by the fact that transport costs increased due to port restrictions. “The disruptions caused by the Covid-19 pandemic in the global supply chains for semiconductors, microchips and other manufacturing components in the second half of 2021 have led to production delays and order backlogs that continue to grow and will lead to a decline in turnover and profit in 2022,” according to the management report of Mikrotīkls.

Latvia’s most valuable private equity firm

With a value of 1.24 billion euros, Mikrotīkls has been ranked third in the Nasdaq Riga and Prudentia TOP101 list of the most valuable companies in Latvia in 2021. This makes Mikrotīkls the first private equity firm to break the 1 billion euro barrier in the history of Top101, wrote Labs of Latvia.

In 2020, Mikrotīkl’s turnover reached 353.6 million euros, which is 24.93% more than a year earlier. The company closed 2020 with a profit of 82.4 million euros, wrote Labs of Latvia.

Mikrotīkls is a well-known science philanthropist and invests in Latvian science. For example, in March the company donated 500,000 euros to support various science and medical projects and researchers at the University of Latvia. It also supports the Riga Technical University Talent Programme.

In 2019, Mikrotīkls received an award from the World Intellectual Property Organisation for its use of intellectual property to support innovative commercial strategies, as well as knowledge-based and continuous development-oriented entrepreneurship.

Developing 5G technologies

In May 2021, 5G internet routers developed in cooperation between the Latvian innovation technology companies LMT and Mikrotīkls reached their first customers, wrote Labs of Latvia.

Last year, LMT, the Institute of Mathematics and Informatics at the University of Latvia and Mikrotīkls signed a memorandum of cooperation on joint research and development of quantum technologies, wrote Labs of Latvia.

“New technological opportunities are not just numbers on paper, they are new products, services, and opportunities in all fields, business, science, education, and medicine. The more effort and resources we invest in technology today, the more technologically advanced we will become in the future. This will better prepare humanity for unknown and unpredictable challenges,” said Tully.

Source: Anda Asere (labsoflatvia.com). Publicity photo.

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