Stable revenue in a challenging market environment
Financial information
Nera Networks achieved revenue of NOK 434 million in the third quarter of 2009, which was an increase of three percent from the third quarter 2008.
For the first nine months of 2009 revenue increased 14 percent to NOK 1,359 million, whereas the currency adjusted growth was 4 percent. Revenue growth came in the Americas region, particularly in Brazil and Argentina, while APAC and EMEA regions showed a decline.
Cash flow and operations
Nera Networks had strong cash flow generation in the third quarter. Performance indicators such as days of sales outstanding (DSO) and inventory turn also improved in both segments. Cost measures taken in the first half have also begun to show results.
Gross margin
Gross profit was NOK 70 million in the third quarter, which was 25 below the third quarter 2008 and 19 percent below the previous quarter.
Gross margin was 16.2 percent, well below the 22.6 percent reported in the third quarter last year and also a further decline from 18.5 percent in the previous quarter.
Order entry
New orders amounted to NOK 443 million in the third quarter, which was a decline of 12 percent from the third quarter 2008 and in line with the previous quarter. For the first nine months 2009, order entry declined by three percent to NOK 1,378 million.
Operating profit
EBITDA was NOK 22 million in the third quarter 2009, which compares to NOK 38 million in the third quarter 2008. The decline is mainly related to the weakened gross margin. EBIT was NOK 19 million in the previous quarter.
EBIT was NOK 0 million, down from NOK 21 million in the third quarter last year and only a small improvement from NOK -3 million in the previous quarter.
Nera Networks AS is a fully owned subsidiary of Eltek ASA (ELT) listed on the Oslo Stock Exchange. A full financial report for Q3 2009 is available from the Eltek website.
10/22/2009