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Building a stronger platform
In 2009, we succeeded in meeting our main ambition: to improve cash flow and strengthen our financial position. We also continued to focus on product development and confirmed our leadership in high efficiency power conversion and transmission technology. We broadened the scope of our offering and entered new market segments. So despite reduced revenue and order entry, I look back on 2009 as a year where Eltek strengthened its platform and prepared for future growth.
I joined Eltek in March 2010, so I cannot claim any credit for the achievements of 2009. My predecessor, his management team and everyone in the operating companies put in a great effort and made good progress in view of the difficult market conditions. Working capital management and cash collection was significantly improved across the entire Group. Eltek Valere performed well, gained market share, improved gross margin and generated a strong cash flow. Nera Networks, too, took significant steps forward, despite having to post a meager operating result. Specifically, the company successfully leveraged the strength of the very competitive Evolution SeriesTM microwave radio platform in all regions.
In the few weeks I have been here, the impression I had of the company has been confirmed: I’ve become part of an organization full of ambition and fighting spirit, with leading technological expertise and a strong will to succeed in the market place. Our proprietary technology is absolutely top class. Our global footprint, organization and business model is something that even large multinational companies can envy us. For me, it is inspiring to have become part of this culture, and I look forward to contributing to more success and greater value creation going forward.
The telecom industry will continue to be our main market and focus. Our high efficiency energy and transmission systems will help operators build, expand and maintain their telecom networks around the world. Our product offering is very competitive, and helps our customers reduce operating cost – and increasingly important – their environmental footprint.
More efficient energy consumption is one of the keys to combating climate change. This also represents a great business potential for our company in the time ahead. We have taken important steps to adapt our high efficiency power equipment to other market segments. Early 2010, the first Think electric car fitted with an Eltek Valere charger rolled off the manufacturing line in Finland. We are also targeting the solar industry with a complete line of solar-to-grid inverters, and this summer we will launch our first proprietary inverter based on Eltek’s unique high efficiency power conversion technology.
A good starting point, a sober optimism regarding the development of the telecom market and new, exciting opportunities within renewable energy, do of course not make us blind to the challenges that lie ahead of us. Our business environment is very competitive, so cost-efficiency throughout the value chain is absolutely essential. We will therefore continue to streamline operations, increase standardization and expand our global product line.
I am excited by the opportunities that lie ahead of us. Our customer relationships, our products and our people make us uniquely positioned to win further market share, continue to develop a sound business around the world and increase value for our shareholders.
Copyright 2010 Eltek ASA • Date: 2010.9.4 • Disclaimer • Phone +47 32 20 32 00 eltek@eltek.com