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Performance
NeraTel increased revenue by 20 percent to NOK 798 million, and by 12 percent on a currency adjusted basis. However, order entry and backlog fluctuates a lot due to the instability in transmission-orders, and order entry fell by 32 percent. Within the telecom segment, revenue increased by 11 percent (currency adjusted) and the Infocom segment by 3 percent (currency adjusted).Telecommunications (Telecom)
Turnover increased 11.0 percent (currency adjusted), mainly due to higher sales of microwave radio equipment. Turnover for the satellite business area decreased slightly due to lower sales of satellite terminals.
Competition in the telecommunication industry remains intense. The global economic downturn in 2008 / 2009 have resulted in many mobile operators and service providers re-aligning their growth strategies in line with their revenues and exercising caution in their capital and operational expenses. Going forward, mobile operators and service providers will likely compete aggressively in securing market share and invest in new growth areas. Customers will likely re-visit their growth strategies and seek partnership with suppliers to help them to lower their operating and capital expenditure and deploy new products and services.
In the Transmission business area, NeraTel offers Nera Network’s complete range of Evolution Series microwave radio platform which can give significant savings in both deployment and operation across mobile networks. NeraTel is well positioned to further develop its radio transmission business opportunities in the Defence, Broadcast and Utilities market sectors.
In the Satellite business area, NeraTel focuses on the sales of Inmarsat and Thuraya satellite communication products, solutions and services to the land and marine markets. The Group will continue to explore business opportunities in the maritime VSAT market and promote broadband satellite networks to satellite operators, broadcasters and government organisations.
Infocomm (IF)
Turnover increased by 3.0 percent, mainly due to higher sales of point-of-sale terminals to the Financial Services and Retail market sectors.
In the Service provider market sector, the demand for network infrastructure products and services are driven by the growth in internet traffic, web services and broadband deployment. NeraTel will continue to focus on providing cost effective, high performance IP, optical and broadcast network infrastructure products and solutions to enable service providers, broadcasters, ISPs and operators to scale and secure their network and service infrastructure as well as having the ability to rapidly deploy new services.
In the Enterprise market sector, NeraTel sees various business opportunities for its network infrastructure and payment solutions products. NeraTel will continue to focus on providing cost effective and enterprise-class network infrastructure product and services such as routers, switches, security equipment or threat management, optimization, aggregation appliances to help enterprises deploy a secured network, save costs and improved productivity.
In the Enterprise Banking, Finance and Retail market sector, some customers are focusing on lowering their capital and operating expenses including outsourcing their POS payment infrastructure to be prepared when the market improves. NeraTel has been successful in securing a number of new customers and will continue to develop and strengthen its POS terminal sales, applications, rental, leasing and maintenance business to the banks, financial institutions and retailers.
In the Government, Transport and Utilities market sector, opportunities in the Government sector remain positive as IT spending in these various sectors such as education, healthcare, defence, transportation and utilities are accelerated to help boost the economy. NeraTel has successfully deployed a few network infrastructure projects to the Government and Education sectors and will continue to develop this market and focus on providing IP and optical networks, integrated communication solutions, dedicated communication networks and payment solutions to customers in these sectors.
Competition in the Infocomm industry is keen and the market continues to be dominated by a few major local and large global industry players.
Copyright 2010 Eltek ASA • Date: 2010.9.4 • Disclaimer • Phone +47 32 20 32 00 eltek@eltek.com