Continued losses, but high inflow of orders
- Net sales amounted to SEK 102.8 (102.1) million.
- Operating income amounted to SEK -82.1 (-16.0) million.
- Earnings per share amounted to SEK -1.92 (-0.75).
- Inflow of orders amounted to SEK 185.0 (57.9) million.
- In February, the Company received its single largest order ever, valued at SEK 85 million from leading fixed line network operators.
- The result was charged with SEK 30 million attributable to expenses for projects commitments.
- Action plan under implementation.
President's comments The quarter showed a large loss sustained as a result of commitments to three major delivery projects, a more conservative approach to capitalisation as well as provisions being made for these projects. The projects also entailed increased expenses during the quarter in the form of increased consultants expenses.
Implementation of Action Plan The new Board of Directors has, together with management, decided to launch an action plan to review business logic, expenses, procedures and capitalisation. Work has already commenced and any results will be reported in the coming quarters. In the first few months of the year, a new organisational structure was implemented. The main purpose of this is to improve the different business areas product sales, service and solution sales and, thereby, clarify responsibility for profitability regarding the respective transactions.
Sales trends In terms of the inflow of orders, the first quarter of 2007 has been the strongest in the Company's history. The inflow of orders is based on a couple of large orders from leading carriers in Europe, as well as a number of customers placing additional orders to supplement existing system solutions. The strong inflow of orders during the quarter has not significantly affected income for Q1. In February, a leading fixed operator appointed Teligent as a supplier of platforms and services for the carrier's large scale migration to IP telephony. The income generated from the deal amounted to a record breaking SEK 85 million. During the same period, the Company also received a major order for delivery of the Teligent Application Server to another leading European operator for SEK 30 million.
Teligent also received its first order for Mobile Office based on the Teligent Application Server, an important milestone in the integration of Teligent and Trio. These transactions have been made possible by the new platform offer, Teligent Application Server, and demonstrate the strength of the Company's product portfolio. During the current quarter, the Company has also delivered system upgrades to TeliaSonera, Deutsche Telekom, Maroc Telecom and others. The subsidiary, Trio Enterprise, which develops presence and customer service systems for the business market, has continued to develop according to plan. The operations have so far been focused on the Nordic region and Trio Enterprise is now planning a major effort in the Northern European market through our partners. The Company has successfully carried out a new share issue during the quarter.
Questions regarding this interim report may be directed to: Tomas Duffy, President and CEO, +46-(0)8-410 172 76 or Jan Bengtsson, CFO, + 46-(0)8-410 171 52