Teleste Reports H1

Teleste reports 52.6% increase in sales to €37.9M for the first half of the year

July 19, 2005

2 Min Read

TURKU, FINLAND -- Teleste Corporation Interim Report 1 January to 30 June 2005

  • Net sales grew by 52.6 per cent over the previous year amountingto EUR 37.9 million

  • Operating profit more than trebled over the previous yeartotalling EUR 2.8 million

  • Orders received increased by 6.5 per cent in comparison with thecorresponding period last year standing at EUR 36.9 million

  • Combined, orders received and the made framework agreementsspanning 2005 to 2007 amounted to EUR 50.9 million indicating acontinuous favourable market development

  • We believe profitability will continue to improve in the secondhalf of the year



Improved Net Sales and Profitability

Teleste's net sales grew by EUR 13.1 million - an increase of52.6% - over the previous year amounting to EUR 37.9 million (EUR24.8 million). Operating profit increased by EUR 1.9 milliontotalling EUR 2.8 million, i.e. 7.3% of the net sales (EUR 0.85million and 3.5%, respectively). Earnings per share were EUR 0.11(EUR 0.03).

Teleste’s orders received went up by 6.5% standing at EUR 36.9million (EUR 34.7 million). Out of the framework agreementsreported in the period under review and totalling EUR 16 million,EUR 2 million has been entered in orders received. The increasedamount of framework agreements signifies a greater emphasis onlong-term planning in customer relationships. Order backlogtotalled EUR 19.9 million (EUR 16.5 million).

Teleste’s net sales for the second quarter were EUR 18.1 million(EUR 13.6 million) and operating profit EUR 1.5 million (EUR 0.7million), i.e. 8.3 % (5.2 %) of the net sales.During the second quarter, Teleste’s orders received amounted toEUR 20.3 million (EUR 23.5 million). Combined, orders received andthe framework agreements for the second quarter stood at EUR 34.3million.

Outlook

We confirm our previous estimation concerning the continuingfavourable development of the Broadband Cable Networks business in2005. In spite of fierce competition the business unit'sprofitability will improve in the second half of the financialperiod. Effective management of product costs and manufacturing ofselected product groups in China improve the unit's competitiveedge. Our position in Europe will be strengthened by the widerproduct range, improved provision of services and the network ofoffices close to the customer. We will also step up our marketingefforts in carefully selected areas outside Europe.

As to Video Networks, we especially expect the demand for networkmanagement projects to pick up. We believe that the businessunit's net sales and profitability will grow for the entire year.

In comparison with the previous period, Teleste's net sales andprofitability will improve for the entire year.

Teleste Corp.

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