Transmode Lauds 2008

11:20 AM -- Swedish vendor Transmode Systems AB confirmed today what it told Light Reading back in October -- that it grew its revenues last year by 32 percent. (See Transmode Boasts 2008 Growth and Transmode Bucks Growth Trend.)

The optical equipment specialist reported sales of 607 million Swedish Kronor (US$66.4 million), up from SEK461 million in 2007, thanks to an ongoing ramp in contract wins. The company now has about 230 customers for its metro WDM products. (See Transmode Wins in Canada, ntl:Telewest Does Backhaul, and Sonofon Deploys Transmode .)

Its profitability also climbed. Earnings before a bunch of stuff (the financial experts call it EBITDA) hit SEK117 million ($12.8 million), before minimal one-time charges, compared with SEK32 million ($3.5 million) in 2007.

The company isn't expecting to repeat the feat this year, though. For 2009 it is "taking a more cautious view due to the wider economic environment."

While market trends favoured Transmode last year, international currency exchange rates weren't as kind. The Swedish Kronor has weakened significantly against the euro and U.S. dollar, making its numbers in those international currencies look less impressive. In early October SEK607 million was the equivalent of €65 million and $92 million -– now that same pile of Kronors is worth €53 million and $66 million.

That hasn't at all dampened the firm's desire to expand, though. Transmode recently boosted its management ranks by appointing a new CTO, and forged an interesting relationship with NEC Corp. (Tokyo: 6701). (See Sten Guns for Packet Optical Integration and Sten Guns for Packet Optical Integration.)

— Ray Le Maistre, International News Editor, Light Reading

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