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Performance
Revenue in the EMEA region amounted to NOK 955 million, an increase of 17 percent from 2008, and corresponding to 51 percent of total revenue for Nera Networks.
Europe
In spite of a challenging market in Europe, Nera Networks achieved revenue in line with 2008. The company has a large customer base, mainly in the UK, Italy, Eastern Europe and Scandinavia. Nera Networks operates through local offices in Milan and London, the main office in Norway, as well as from offices/branches in Sofia, Bulgaria and Serbia, Poland and the Czech Republic. The company also has well-established distributors in Portugal, Spain, Germany and Kirgizstan. In 2009, the activity in these markets was supplemented by a contract won in Switzerland. In the telecom sector, Nera Networks signed a contract with the Telenor Group subsidiary, PromonteGSM, to upgrade its complete wireless backbone and access transmission network in Montenegro, and secured contracts in both Spain and Portugal. The offshore and defense markets are also important. In 2009, Nera Networks delivered the world’s longest microwave radio hop to a moving rig/vessel through a contract with Talisman Energy Norway AS, for the delivery of radio communication equipment to the North Sea.
Africa
Nera Networks can look back on a long history in Africa where it has delivered a number of successful, large turn-key projects. Due to the size of the continent, the company focuses on relatively few markets and projects, but is well represented in key markets. The company’s performance in 2009 was good, with revenue growth above 15 percent, and with volume deliveries of the Evolution series products.
West Africa represents the largest market area, which Nera serves from the office in Nigeria. The company is well established in West Africa with good competence and capability to implement projects. Among contracts won was a frame agreement with Nigerian Railway Corporation to refurbish the radio communication solution along a 1,200 km railway line.
South Africa is the largest market in the Southern Africa Region. Nera Networks has a good business relationship with one of the major operators, and does business in the neighboring countries.
North Africa is also very good market area for Nera Networks. The company is well established several countries, with ongoing business activities with a mix of large private operators and governmental customers. In 2009 the volume was lower than the previous year, but several large opportunities are being pursued.
Middle East
The main markets for Nera Networks in the Middle East region were Saudi Arabia, Oman, Pakistan and in the Maldives.
2009 was a year of significant growth in the Middle East region. Nera Networks strengthened the organisation in the region and a new company in the Kingdom of Saudi secured new business. Nera Networks has a good brand name in the region and is well positioned to grow in line with the expected high activity in the telecom sector in the years ahead. Among the contracts won in 2009 was one with a global WiMAX supplier in the Middle East, under which Nera Networks was responsible for design, supply and implementation of the transmission part of a WiMAX project connecting up to 450 WiMAX sites.
Revenue in the Americas amounted to NOK 765 million, or 41 percent of total revenue for Nera Networks. This is an increase of 3 percent from the previous year.
In a flat or slightly declining market, Nera Network’s growth indicates that the company grew its market share in 2009.
The main market in the region was Brazil, which accounted for more than half of the order intake. The company has business relationships with both of the two major cellular operators in the country.
In Venezuela, Nera Networks consolidated its position with major customers.
The US market was very slow reflecting the country’s economic status, but progress was made with a company that provides internet bandwidth to rural school districts, as well as with an operator based in Hawaii.
In the south cone countries of Argentina, Paraguay and Uruguay, Nera Networks consolidated its position as the number one radio supplier to key customers. The markets in the Caribbean, Mexico and Colombia were very slow where Nera Networks relied on its strong service business in those countries.
Among the major contracts won in the Americas was one with a major operator in South America with an estimated value of NOK 150 million. The contract was for delivery of Evolution Series™ microwave radios and services for 721 hops, of which 505 are new and 216 are upgrades.
Copyright 2010 Eltek ASA • Date: 2010.9.4 • Disclaimer • Phone +47 32 20 32 00 eltek@eltek.com