Strengthened position in SE-Asia contributes to Nera’s improved results

“While markets remained challenging through 2003, we improved our position in several market segments,” says Bjørn Ove Skjeie, CEO of Nera ASA.
     “Nera’s agreement with Nortel in Q4, our strengthened market positions in Southeast Asia and the Americas and its global leadership in broadband satellite solutions are examples of this.”
     The wireless telecommunications technology company from Norway recorded operating revenues of NOK 2,253 million in 2003, compared to NOK 2,445 million a year earlier.
     “Nera closed the year on a positive note and moves into the new year with more momentum than a year ago,” comments Bjørn Ove Skjeie on the company’s operating results for 2003.
     “By increasing our operating income by NOK 150 million in spite of lower business volumes, we also attained our main goal of returning to profitable operations,” he says.
     In the final quarter of the year Nera had a turnover of NOK 659 million and profits from operations. All business areas improved their gross margins and the company produced an operating income of NOK 1.4 million in the fourth quarter 2003, compared to a loss of NOK 28.8 million in the corresponding quarter 2002.
     The company’s loss before tax in the fourth quarter of 2003 was NOK 0.6 million, compared to NOK 30.7 million recorded for the same quarter 2002.
     Transmission networks business had an order intake of NOK 291 million and an operating income of NOK 1.3 million in the fourth quarter 2003. This is the first quarter since 2001 in which this business segment of Nera has produced positive operating income.
     In satellite communications, the company maintains its market position and profitability and had an operating income of NOK 14.4 million in the fourth quarter 2003, compared to NOK 15 million in the corresponding quarter 2002.
     With operating revenues of NOK 67 million in the fourth quarter 2003, Nera’s wireless broadband access continued to grow, more than quadrupling its revenues from the same quarter a year before.
     “As transmission networks returns to profitability and the other business areas deliver in line with expectations, Nera finds itself, at the onset of 2004, better equipped than in several years to benefit when our main markets improve. Our ambition for 2004 is to re-establish growth and produce positive operating income,” he concludes.

Sources: Nera ASA <http://www.nera.no>

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