SHERIDAN, WYOMING – November 6, 2024 – Teleste Corporation, a leading international technology company, today released its Interim Report for the period of January 1 to September 30, 2024. The report highlights increased operating profit and strong cash flow despite a decline in revenue compared to the same period last year.
Key Highlights:
- Operating Profit Increased: Adjusted operating result increased by 183.4%, amounting to EUR 1.5 (0.5) million.
- Strong Cash Flow: Cash flow from operations increased by 277.1% to EUR 3.5 (0.9) million.
- North America Deliveries on the Rise: Teleste's 1.8GHz DOCSIS 4.0-compliant smart amplifiers are the first in the industry to be delivered to commercial networks in North America.
- Cost Efficiency Measures: The company has implemented significant cost-saving measures and prioritizations, resulting in a substantially lighter cost structure.
Profitability Improvement
Despite challenges in the European market, Teleste has managed to improve profitability in both its Broadband Networks and Public Safety and Mobility business units. President & CEO Esa Harju commented on the results: "Profitability improved in both business units, although orders and revenue decreased compared to the same period last year. The savings measures and prioritizations implemented in the company have been significant, resulting in a substantially lighter cost structure than before. The cash flow from operations was also at a very good level."
Broadband Networks
While the European market for broadband network products remained weak, Teleste saw increased delivery volumes in North America. Harju stated: "We are solidifying our position as a key technology supplier to several North American operators, and volumes are expected to continue to increase during 2025 and 2026."
Public Safety and Mobility
Several important projects in the Public Safety and Mobility business unit have progressed to the commercialization stage, with large project deliveries expected by the end of the year. The company is also seeing growth in its services and maintenance business, which will provide more stable revenue streams in the future.
Financial Guidance
In its updated guidance issued on September 16, 2024, Teleste estimates that net sales for the full year 2024 will amount to EUR 120-135 million and that the adjusted operating result will be EUR 1-4 million.
Strategic Actions
Teleste has continued to take action to improve cost efficiency and prioritize operations. The company is also restructuring its legal structure, separating the Broadband Networks and Public Safety and Mobility businesses into their own legal entities.
Looking Ahead
Despite the current economic uncertainties, Teleste remains optimistic about the future. The company's focus on innovation, cost efficiency, and strategic partnerships positions it well for continued success in the evolving technology landscape.