Teleste has reduced the working hours of its European staff after lowering its guidance for the financial year 2024.
The troubled tech supplier says that demand in the European market for the Broadband Networks business continues to be lower than expected. While volumes in North America have started to grow, they are insufficient to cover for the lower volumes in the European business. There is also still uncertainty regarding the timing of deliveries and projects for the rest of the year.
Teleste now estimates that the net sales in 2024 will amount to €120-135 million and that the adjusted operating result in 2024 will be €1-4 million. It had previously estimated sales of between €3-6 million
The main reason for the updated guidance is the continued lower-than-expected demand in the European market for the Broadband Networks business. North American delivery volumes have started to grow, but they will not fully compensate for the volume outlook in Europe. There is also still uncertainty regarding the timing of deliveries and projects for the rest of the year.
The company says its latest cost saving measures will save over €8 million a year.
