Year-end Report January–December 2007

Teleca on plan; restores growth in services & achieves 10% operating margin in 2H 2007

Fourth quarter highlights
- Revenues of SEK 366 million (356). Consulting reported revenues of SEK 311 million (300). The consulting business showed 5% growth in the second half of 2007 compared to the first half.
- Product revenues amounted to SEK 55 million (56), which were higher than expected.
- Teleca reports operating earnings (EBIT) of SEK 42 million (-57) and a 12% operating margin (-16%). Consulting contributed with SEK 26 million (36) to the operating earnings and Products with SEK 16 million (-93). The result in Consulting includes redundancy charges of SEK 4 million in Asia.
- Net earnings for the quarter amounted to SEK 25 million (-64).
- Earnings per share for the quarter amounted to SEK 0.41 (-1.03).
- Cash flow from operating activities of SEK -32 million (6), negatively impacted by temporary increase in working capital at year end due to delayed payments from larger customers as well as restructuring earlier accounted for of SEK 23 million.


Key figures, 2007 Q4 2006 Q4 % 2007 FY 2006 FY %
SEK million
Net sales 366 356 3 1,311 1,490 -12
Operating 42 -57 174 -533 -277 -92
earnings
(EBIT)
Earnings for 32 -61 152 -663 -296 -124
the period
from
continuing
operations
Earnings for -6 -4 -50 337 298 13
the period
from
discontinuing
operations
Net earnings 25 -64 140 -327 2 n.a.
for the
period
Earnings per 0.41 -1.03 140 -4.88 0.02 n.a.
share, SEK
Cash flow -32 6 -608 -243 -70 -247
current
operations
Cash flow -39 -41 4 514 2 n.a.
after
investments
Net sales 311 300 4 1,133 1,263 -10
Consulting
Net Sales 55 56 -2 178 227 -21
Products
EBIT 26 36 -28 70 84 -17
Consulting
EBIT Products 16 -93 118 -101 -220 54

Press and analyst conference
Teleca will present the earnings figures at 09.00 (CET) on 7 February 2007, at Grand Hotel in Stockholm (room Carl Larsson). Call SWE +46 (0)8 505 59853, UK +44 (0)20 3043 2436 or US +1 866 458 40 87, or view live via the internet at www.teleca.com.

For more information contact
- René Svendsen-Tune, President and CEO, Teleca AB, mobile +45-40540068
- Christian Luiga, CFO, Teleca AB, mobile +46-703751604
- Mattias Stenberg, Investor Relations Manager, Teleca AB, mobile +46-70611961