NeraTel sees 15.6% rise in Q2 net profit

Nera Telecommunications Ltd. (NeraTel) on July 16 released its financial statements for the second quarter 2004, which shows a significant increase due mainly to strong performance in all the three business segments of the company: Telecommunications, Information Technology, and Contract Manufacturing.
     NeraTel’s turnover rose 34.3 percent, from S$39.85 million to S$53.53 million, in Q2/2004 compared to the corresponding quarter in 2003. The figures turned into an operating profit of S$3.97 million, rising 2.1 percent from S$3.88 million posted for the same quarter 2003.
     The net profit increased 15.6 percent from Q2/2003’s S$2.52 million to S$2.91 million in Q2/2004.
     Compared to the first half year of 2003, Nera saw an increase of 4.8 percent in its turnover of S$87.90 million in the half year ended June 30, 2004. The operating profit for the six-month period however declined 6.3 percent to S$7.95 million, producing a net profit of S$5.48 million, which is down 24.3 percent from the same period a year earlier.
     NeraTel is a subsidiary of Norway’s global telecommunications company, Nera ASA. The company is active in all of Southeast Asia through its headquarters in Singapore and subsidiaries in Malaysia, Thailand, Indonesia, the Philippines, and Vietnam.
     Nera ASA on July 22 announced its Q2/2004 results, which reflects a solid increase in both orders received and operating revenues.
     The company’s had operating revenues of NOK 660 million in Q2/2004, an increase of 21 percent over Q2/2003. Its pre-tax profit before tax for the quarter was NOK 1.3 million. The company did not achieve an operating profit in the quarter, but its operating loss of NOK 7.3 million shows a considerable improvement over the loss of NOK 11.1 million in the same quarter the year before.
     “The conditions necessary for growth and profitability are definitely there. We expect a solid business volume in the upcoming quarters. Our product portfolio receives good response, and we have won significant market positions both in Asia and Latin-America. With lower expenses and a more flexible expense structure,” said Nera’s CEO Bjørn Ove Skjeie, who further commented that the company’s goal for the time being is to return Nera to a satisfactory level of profitability, and he expected a positive operating profit in 2004.

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