Nera Telecommunications Ltd · SGX:N01
Nera Telecommunications — Q1 2016 Earnings Presentation
21 slides from Nera Telecommunications's earnings presentation, May 5, 2016
Slide 1: Nera Telecommunications Ltd Analysts' Briefing
Nera Telecommunications Ltd NERA TELECOMMUNICATIONS LTD ANALYSTS’ BRIEFING Samuel Ang Mark Weng Kwai President & CEO Financial Controller 5th May 2016 1
Slide 2: Content
Nera Telecommunications Ltd Content • Result analysis : ‒ 1Q FY16 vs 1Q FY15 • Outlook 2
Slide 3: Financial performance summary
Financial performance summary Nera Telecommunications Ltd Group Qtr 1 Qtr 1 Increase/ 2016 2015 (Decrease) Note S$'000 S$'000 % Turnover 37,491 42,105 (11.0) Cost of sales (24,712) (28,001) (11.7) Gross profit 12,779 14,104 (9.4) Other operating income 242 291 (16.8) Distribution and selling expense
Slide 4: Revenue overview
S$ m Revenue overview Nera Telecommunications Ltd Click to edit Master title style Y-o-Y = -11.0% Y-o-Y = -19.5% Y-o-Y = +45.7% Y-o-Y = -35.1% Proprietary Information: For internal use only © Copyright Alvarion Ltd. 4
Slide 5: Revenue – Overall group
Revenue – Overall group Nera Telecommunications Ltd 1Q FY16 Revenue in 1Q FY16 declined 11.0% ($4.6m) y-o-y from $42.1m to $37.5m ‒ Telecom - increased 45.7% ($3.7m) y-o-y from $8.1m to $11.8m ‒ Network Infrastructure - declined 19.5% ($4.6m) y-o-y from $23.4m to $18.8m ‒ Payment Solutions - decline
Slide 6: Revenue – Telecom segment
Revenue – Telecom segment Nera Telecommunications Ltd Y-o-Y SEA & others = +38.8% MEA = +61.0% In 1Q FY16, Telecom segment revenue from SEA & others region increased Y-o-Y at 38.8% ($2.2m). In 1Q FY16, Telecom segment revenue from Middle East and Africa region increased Y-O-Y at 61.0% ($1.5m). As a
Slide 7: Revenue – Network Infrastructure
Revenue – Network Infrastructure Nera Telecommunications Ltd Y-o-Y = -19.5% Revenue contribution for 1Q FY16 from Network Infrastructure business area declined 19.5% ($4.6m) Y-o-Y. The lower revenue for 1Q FY16 was mainly due to lower sales of network equipment to the Service Provider market. There
Slide 8: Revenue – Payment Solutions
Revenue – Payment Solutions Nera Telecommunications Ltd Y-o-Y = -35.1% For 1Q FY16, revenue contribution for Payment Solutions business area declined Y-o-Y at 35.1% ($3.8m). The decline was mainly due to lower sale of point-of-sale terminals in Thailand. 8
Slide 9: Revenue – Breakdown by nature
Revenue – Breakdown by nature Nera Telecommunications Ltd Equipment revenue Y-o-Y = -28.4% Service, leasing revenue Y-o-Y = +22.1% • Revenue contribution from service and leasing revenue increased 22.1% Y-o-Y for 1Q FY16. • Revenue contribution from equipment sales declined 28.4% Y-o-Y for 1Q FY16.
Slide 10: Gross Profit, GP Margin
Gross Profit, GP Margin Nera Telecommunications Ltd Y-o-Y = -9.4% Gross profit (S$ ’m) GP margin (%) QQQQ • In 1Q FY16, gross profit declined 9.4% from $14.1m to $12.8m as a result of lower turnover. • Gross profit margin (“GP margin”) improved slightly Y-o-Y from 33.5% to 34.1%., mainly due to lowe
Slide 11: Other income, Operating Expenses
Other income, Operating Expenses Nera Telecommunications Ltd Other operating income The lower other operating income for 1Q FY 2016 was mainly due to lower suppliers’ incentive rebates, partially offset by higher government grant. Distribution and Selling expenses • Distribution and selling expenses
Slide 12: Profit after tax
Profit after tax Nera Telecommunications Ltd Y-o-Y = -33.4% • PAT for 1Q 2016 registered a decline of 33.4% YOY mainly due to lower gross profit from lower revenue, higher exchange loss and interest expenses, partially offset by lower taxes. 12
Slide 13: Financial Positions
Financial Positions Nera Telecommunications Ltd • Borrowings ‒ As of 31 March 2016, long term and short term loans are $12.8m and $3.3m respectively. • Warranty provision, approximately $2.1m • Cash position of $17.7m as of 31 March 2016 In Q1 2016, the Group generated negative cashflow of $1.1 mill
Slide 14: Outlook
Nera Telecommunications Ltd Outlook 14
Slide 15: Nera Telecommunications - Overall
Nera Telecommunications - Overall Nera Telecommunications Ltd • In 1Q FY16, the Group secured a total of approximately $70.2 million in order intake, an increase of 21.9% compared with $57.6 Infocomm million in Q1 2015 as a result of Network Infrastructure significant orders received from the Infoco
Slide 16: Telecommunications Segment
TELECOMMUNICATIONS SEGMENT Nera Telecommunications Ltd BA : Wireless Infrastructure Networks (“WIN”) • In Q1 2016, the Group’s Telecom business segment secured approximately $24.8 million in order in-take, a decline of 10.5% compared to $27.7 million in Q1 2015 as a result of lower orders from custo
Slide 17: Infocomm Business Segment
INFOCOMM BUSINESS SEGMENT Nera Telecommunications Ltd • The Infocomm business segment Infocomm Network Infrastructure comprises two business areas, namely Network Infrastructure and Payment Solutions. • The Group’s Infocomm business segment recorded a significant increase in order IP intake of 51.8%
Slide 18: Infocomm BA: Network Infrastructure
Nera Telecommunications Ltd • In Q1 2016, the Group’s Network Infrastructure business area INFOCOMM managed to secure approximately $34.8 million in order in-take, a BA : Network significant increase of 92.4% compared to $18.1 million in Q1 Infrastructure 2015. This resulted from higher orders of ne
Slide 19: Infocomm BA: Payment Solutions
Nera Telecommunications Ltd INFOCOMM • In Q1 2016, the Group’s Payment Solutions business area BA : Payment managed to secure approximately $10.6 million in order in-take, a Solutions decrease of 10.4% compared to $11.8 million in Q1 2015 as a result of lower orders of point-of-sale (‘POS’) terminal
Slide 20: Order in-take summary
Order in-take summary Nera Telecommunications Ltd Y-o-Y = Y-o-Y = Y-o-Y = -10.5% +92.4% Y-o-Y = +21.9% -10.4% 20
Slide 21: Nera Telecommunications Ltd
Nera Telecommunications Ltd 21
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