STOCKHOLM, July 16, 2020 /PRNewswire/ — Strategic 5G contracts strengthen Enea
April – June 2020
- Net gross sales amounted to SEK 239.0 million (249.4), equal to a 4 p.c lower.
- Operating revenue amounted to SEK 59.1 million (72.0), similar to an working margin of 24.7 p.c (28.9). Operating revenue excluding non-recurring objects amounted to SEK 60.4 million (72.2), equal to an working margin of 25.3 p.c (29.0).
- Earnings per share amounted to SEK 2.18 (2.71).
- Enea revealed two bigger multi-year contracts within the quarter, one with a number one telecom service supplier in North America value USD 15-20 million and one with a number one telecom service supplier in Germany, value as much as EUR 24 million.
- The Annual General Meeting appointed Charlotta Sund as new Board member. The Board was given a mandate to subject shares to finance continued progress.
January – June 2020
- Net gross sales amounted to SEK 460.7 million (489.5), equal to a 6 p.c lower.
- Operating revenue amounted to SEK 81.7 million (134.2), similar to an working margin of 17.7 p.c (27.4). Operating revenue excluding non-recurring objects amounted to SEK 100.9 million (137.9), equal to an working margin of 21.9 p.c (28.2).
- Earnings per share amounted to SEK 2.98 (4.85).
Comments from Jan Häglund, President and CEO
Network Solutions-growing with new clients
Sales within the second quarter 2020 had been SEK 239 million. Operating revenue was SEK 59 million, equal to an working margin of 25 p.c. Cash stream from working actions earlier than adjustments in working capital amounted to SEK 87 million.
These numbers are backed by a number of indicators of energy. Despite the corona pandemic inflicting delays to community initiatives and funding selections by some clients, we report elevated income within the Network Solutions product group. One of the explanations is that our enterprise stands on a secure basis of recurring income from a broad buyer base. In addition, contracts with new clients generated further income within the quarter. The two new 5G contracts with main telecom service suppliers in North America and Germany had been particularly essential and are anticipated to generate important income over the approaching five-year interval, conferring us with a number one place on this market. Growth in Network Solutions is essentially compensating for the decline of Operating Systems, the place our Key Accounts are persevering with their migration to open source-based merchandise.
The sturdy working margin within the quarter is as a result of mixture of a excessive share of software program gross sales and an environment friendly value construction. In the second quarter, we witnessed the complete impact of the restructuring and value saving actions we executed within the first quarter of this 12 months. We will preserve adapting our group to enterprise volumes with the target of producing wholesome margins.
We strengthened our monetary place additional, and have a better fairness ratio and decrease web debt than the earlier 12 months, and former quarters. This creates stability, and the scope to make future investments.
Strategic 5G offers
We’ve been chosen to ship 5G knowledge administration software program for 2 of the world’s largest operators, primarily based in North America and Germany. We gained these contracts in fierce competitors with a number of main system distributors, because of our distinctive resolution for knowledge administration in 5G networks. We anticipate these new 5G contracts to generate substantial income over a five-year interval as venture milestones are achieved and the 5G subscriber base expands. Our new merchandise are compliant with the standalone (SA) 5G normal. A survey within the spring revealed that 37 p.c of responding operators plan to launch 5G SA networks over the subsequent two years. Our 5G contracts in North America and Germany might be essential references for future enterprise with new clients.
Video visitors setting elevated calls for on telecom networks
Continuing visitors growth on cell networks is persuading many operators to spend money on subtle video optimization options to boost person experiences, and tailor visitors to obtainable community capability. One of our clients is Vodafone Ireland, which because of our video optimization know-how, has realized clear community efficiency enhancements. Zain Kuwait is one other telecom operator that chosen our video optimization software program platform. In the identical area, one Egyptian buyer has lately positioned an order for a brand new visitors administration resolution, which it would begin putting in within the second-half-year this 12 months. I’m delighted to see our buyer base increasing, and we proceed to speculate to consolidate our market management in video optimization.
Traffic intelligence-crucial for cybersecurity
Traffic intelligence is a core know-how throughout a raft of various functions together with subtle cybersecurity options, enabling speedy risk detection and response. We have a broad buyer base on this phase, and are persevering with to safe new clients, one instance being German firm Genua, which has chosen Enea as a vendor in competitors with different specialists on this phase. The enterprise mannequin of this settlement, like most of our contracts, relies on income that grows as clients succeed and the utilization of our software program will increase.
Our goal of an working margin over 20 p.c stays. Uncertainty within the quick to medium time period has elevated due to the corona pandemic. Its after-effects are very prone to proceed to delay initiatives and influence our enterprise negatively in different methods, risking fluctuations in our earnings over forthcoming quarters. We nonetheless take a optimistic view of market prospects for software program in telecom and enterprise networks. We see potential for our new options in virtualization, cybersecurity and 5G, which is why we’re sustaining our investments in product improvement and innovation for long-term natural progress. In addition, we’re persevering with our seek for potential acquisitions that may strengthen our market place, and long-term earnings capability. However, total, we do consider that the implications of the corona pandemic may have a destructive influence on our gross sales in 2020.
The full report might be discovered as an attachment on this press launch and revealed on www.enea.com.
Press and analyst assembly
Press and monetary analysts are invited to a press and analyst assembly the place Jan Häglund, President and CEO, will current and touch upon the report.
Time: Thursday July 16, 2020 at 8:30 am CEST.
This data is data that Enea AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The data was submitted for publication, by way of the company of the contact individual set beneath, on July 16, 2020 at 7:20 am CEST.
Enea is a world-leading provider of revolutionary software program elements for telecommunications and cybersecurity. Focus areas are cloud-native, 5G-ready merchandise for cell core, community virtualization, and visitors intelligence. More than 3 billion folks depend on Enea applied sciences of their every day lives. Enea is listed on Nasdaq Stockholm. For extra data: www.enea.com
For extra data contact:
Jan Häglund, President and CEO
E-mail: [email protected]
Lotta Trulsson, Executive Assistant
E-mail: [email protected]
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SOURCE Enea AB