Teleste Corporation interim report 1 January to 31 March 2023
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 and follow our account @telestecorp on Twitter.
