Teleste reduces growth forecasts

Teleste is facing up to the uncertainty of the current economic climate, revising downwards its growth and profitability forecasts for the coming year.

The Helsinki-quoted company said nine-month net sales within its Broadband Cable Networks segment had fallen by 16.7% year-on-year to €68.8 million. The company attributed the fall to insecurity in the financial markets and said private equity companies in particular had slowed down their investment activities. Interesting sporting events such as the Olympics also played a part as operators were nervous of upgrading their networks, with a possible loss of service, at a vital moment of action.

Orders received within Broadband Cable Networks amounted to €81.8 million, up from €76.2 million. The order backlog includes last June’s €12 million order from India’s Digicable, though €4.4 million worth of orders from 2007 have been removed from the backlog because they are unlikely to be realised in the near future.

Operating profit across the company was reduced to €4.4 million from €10.5 million in 2007.