Teleste Corporation, stock exchange release, May 4, 2023 at 8.30 a.m. EEST
Teleste Corporation interim report 1 January to 31 March 2023
Net sales and adjusted operating result increased. Full-year outlook remains
unchanged.
Unless otherwise specified, the figures in brackets refer to the year-on-year
comparison period.
January-March 2023 in brief
- Net sales grew by 19.4%, amounting to EUR 45.3 (38.0) million.
- Adjusted operating result grew to EUR 1.5 (0.1) million.
- Operating result grew to EUR 1.2 (0.1) million.
- Adjusted earnings per share were EUR 0.14 (0.01).
- Earnings per share were EUR 0.13 (0.01).
- Cash flow from operations was EUR 2.0 (-4.8) million.
- Orders received decreased by 31.9% to EUR 40.8 (59.9) million.
- The order book decreased by 2.3% and amounted to EUR 127.6 (130.6)
million.
- Significant volume deliveries in the Benelux countries early in the
year increased net sales
- The Belgian tax reassessment decision issued in 2022 was overturned
in accordance with Teleste's request, which resulted in a positive impact of EUR
1.7 million on income taxes in the income statement. Positive impact also on the
result for the reporting period and earnings per share (0,09 €).
Outlook for 2023 (unchanged)
Teleste estimates that net sales in 2023 will amount to EUR 150-175 million and
that the adjusted operating result in 2023 will be EUR 2-5 million.
This guidance is subject to supply chain problems not becoming worse in 2023
than they are at present.
Key figures
+-----------------------------------+--------+--------+-------+---------+
|EUR million |1-3/2023|1-3/2022|Change |1-12/2022|
+-----------------------------------+--------+--------+-------+---------+
|Orders received |40.8 |59.9 |-31.9% |188.5 |
+-----------------------------------+--------+--------+-------+---------+
|Order book |127.6 |130.6 |-2.3% |132.2 |
+-----------------------------------+--------+--------+-------+---------+
|Net sales |45.3 |38.0 |+19.4% |165.0 |
+-----------------------------------+--------+--------+-------+---------+
|Adjusted EBIT 1) |1.5 |0.1 |+1,356%|2.0 |
+-----------------------------------+--------+--------+-------+---------+
| Adjusted EBIT, % 1) |3.2% |0.3% |- |1.2% |
+-----------------------------------+--------+--------+-------+---------+
|EBIT |1.2 |0.1 |+1,142%|-4.8 |
+-----------------------------------+--------+--------+-------+---------+
| EBIT, % |2.7% |0.3% |- |-2.9% |
+-----------------------------------+--------+--------+-------+---------+
|Result for the period |2.2 |0.1 |+2,046%|-5.9 |
+-----------------------------------+--------+--------+-------+---------+
|Adjusted earnings per share, EUR 1)|0.14 |0.01 |+1,874%|-0.01 |
+-----------------------------------+--------+--------+-------+---------+
|Earnings per share, EUR |0.13 |0.01 |+1,707%|-0.31 |
+-----------------------------------+--------+--------+-------+---------+
|Cash flow from operations |2.0 |-4.8 | |-7.8 |
+-----------------------------------+--------+--------+-------+---------+
|Net gearing, % |58.4% |32.8% |- |61.2% |
+-----------------------------------+--------+--------+-------+---------+
|Equity ratio, % |41.6% |51.9% |- |39.7% |
+-----------------------------------+--------+--------+-------+---------+
|Personnel at period-end |842 |862 |-2.3% |844 |
+-----------------------------------+--------+--------+-------+---------+
1) An alternative performance measure defined in the tables section of the
report.
Comments by CEO Esa Harju:
“On the whole, the year has commenced according to our expectations. Our net
sales grew significantly from the comparison period and our profitability
improved. As expected, orders received did not reach the exceptionally high
level of the comparison period.
Net sales increased year-on-year in both businesses. Gross margin improved as
updated customer prices better reflected the increased material costs. Cash flow
from operations was positive, and we are continuing measures to optimise working
capital.
We want to improve our investor communications, and we will from now on include
the orders received, order book and net sales of our two business units in our
financial reporting. Our ‘Broadband Networks' business unit provides products,
solutions and advanced services for the broadband network operators. Our ‘Public
Safety and Mobility' business unit provides products and solutions to the public
transport operators, rolling stock manufacturers and to the public security
sector.
Good delivery volumes continued in the Broadband Networks business, especially
in Central Europe and the Nordic countries. Activities in the North American
market progressed according to plan, and we continue to build readiness to start
commercial deliveries of DOCSIS 4.0 products during the second half of 2023.
The Public Safety and Mobility business is currently engaged in several customer
projects in Europe and the Middle East. Fixed-price projects in the delivery
pipeline continue to burden profitability. In March, we signed an agreement on
the system delivery of a new significant train project with a European rolling
stock manufacturer.
We will maintain our full-year 2023 financial guidance. We expect the
uncertainty of the operating environment to continue, with continued supply
chain challenges particularly with regard to electronics components and
semiconductors. Our delivery volumes in the coming months will also be affected
by our customers' current inventory levels and their possible optimisation.
Passing the increased costs on to sales prices requires further measures in both
of our businesses, and we will also continue to adapt all of the company's
costs. In addition, certain public transport projects involve schedule and
margin risk. These factors make it difficult to predict the full-year
development.
The company will also continue to execute its programme aimed at sharpening the
strategy. Linda Kallas will start as the new Head of Group Strategy on 1 June
2023, as previously announced.”
For further information, please contact:
Esa Harju
President and CEO
Juha Hyytiäinen
CFO
tel. +358 2 2605 611
investor.relations@teleste.com
Teleste in Brief
Teleste's technologies are used to build a networked society. Our solutions
bring high-speed broadband and television services to homes, secure safety in
public places and guide the use of public transport. With solid industry
experience and a drive to innovate, we are a leading international company in
broadband, security and information technologies and related services. We work
in close cooperation with our customers worldwide. In 2022, Teleste's net sales
reached EUR 165.0 million and on average it had approximately 860 employees.
Teleste is listed on Nasdaq Helsinki. For more information, please visit our
website
www.teleste.com (https://teleste.sharepoint.com/sites/Hallitusmateriaali/Jaetut%2
0asiakirjat/Hallitusmateriaalit/2023/04%20toukokuu%203%202023/www.teleste.com)
and follow our account @telestecorp on Twitter.