Finnish equipment supplier Teleste saw significant increases in revenues and profits in the second quarter, despite an admission by the company CEO that there was no indication of the pick-up in the market.
Despite this Jukka Rinnevaara said he expected Teleste’s profitability in 2010 to improve clearly over the previous year. “In our estimation investments have been slowed down by ownership arrangements of our European customers as well as by the tightened financial situation in the public sector”.
The breakdown of the Teleste order book shows that of the €9.4 million increase in sales the vast majority has come from the Network Services division, up to €19.3 million from €10.5 million. Video and Broadband Solutions barely moved the needle, rising from €19.1 million to €19.7 million.
“In our view, the difficult general financial situation in Europe and the ownership arrangements among the cable operators will continue for the rest of the year, and these may have implications for the timing of investments,” said Rinnevaara.
Net sales amounted to €43.5 million (€30.6 million), an increase of 42.3% on the comparative year. Operating profit stood at €1.7 million (€0.4 million).