A reduction in products shipped across satellite, cable and telco resulted in an 18% decrease in revenues within Technicolor’s Connected Home division in the final quarter of 2011.
The French manufacturer suffered from the combination of geographic and economic factors, as well as comparisons with 2010’s larger order book.
€343 million was booked in Q4 with full year revenues coming in at €1,210 million.
In satellite a strong demand in Latin America was offset by the combination of lower shipments into North America and a slowdown in European spending. There were also lower shipments of high-end PVR products as Technicolor, like many manufacturers, struggled with supplies of hard drives following the flooding in Thailand.
Cable products fell back following 2010’s increase as North American MSOs lapped up digital-to-analogue convertor products. Latin America was able to pick up some of the slack through demand for cable broadband gateways.
Telecom saw a sharp decrease in fourth quarter volumes through a continued slowdown in European spending.
Technicolor has already begun a series of restructurings, which combined with European Photochemical Film activities as well as the Group’s transversal functions, is expected to lead to a workforce reduction of around 600 employees in 2012.