Teleste says it’s facing a “component crisis” as the Finnish broadband tech firm struggles to meet order times.
Despite a full order book, the company says delivery times of materials and components, combined with increased uncertainty over their availability and rising prices have impacted on profitability.
Teleste estimates that net sales in 2022 will reach 2021 levels, but that overall profitability will fall short. Net sales in 2021 were €144.0 million, and the adjusted operating result was €5.5 million.
“Investments in broadband networks are continuing at a good level in Europe, and we received new orders from broadband network operators in several European countries in various product groups,” said CEO Esa Harju. “We are working continuously to pass the increased material costs on to customer prices, but there is an inevitable delay before the effects of these efforts become evident.”
European cable operators are continuing to invest in DOCSIS 3.1 standard-compliant 1.2 GHz frequency range network upgrades. DOCSIS 3.1-compliant distributed architecture product ranges and the integration and testing activities by the most advanced operators have progressed to a point where network upgrades can increasingly be implemented using these solutions. Investments in HFC network infrastructure are also continuing.
In June, Teleste issued a profit warning amid the worsening component shortage, rising inflation and the war in Ukraine.