NeraTel reports 76% rise in 4Q earnings to $2.3 mil on higher sales

Sales from network infrastructure increased by 14.7% to $35.9 million mainly due to higher turnover booked from service provider markets in Singapore, the Philippines and Australia.

Sales from wireless infrastructure network increased by 29.6% to $23.7 million from $18.3 million driven by higher turnover from both the Asia Pacific and the Middle East and Africa markets.

Gross profit for 4Q17 increased by 11.0% to $13.9 million while gross profit margin decreased to 23.4% from 25.3% due to lower gross profit margin from equipment turnover.

Other operating income decreased to $0.1 million from $0.6 million largely due to lower income generated from services rendered to Ingenico under its payment solutions which was divested.

Total operating expenses decreased by 9.6% to $11.1 million on lower distribution and selling expenses and administrative expenses.

For FY17, earnings fell 87.8% to $8.5 million as there was a profit from discontinued operation, net of tax of $66.3 million after the divestment of the payment solutions business.

In FY17, the group secured $196.1 million of orders, an increase of 5.9% from a year ago, driven by higher orders from the Network Infrastructure business segment.

NeraTel says network security and digitisation will continue to be the key drivers for growth. The group will therefore continue to develop its capabilities in these domains in order to address its customers’ needs.

Meanwhile, the group believes that demand for wireless infrastructure networks will continue to be driven by mobile operators expanding their network capabilities in order to meet increasing digital needs from end users.

The board is recommending a final cash dividend of 1.5 cents.

Shares in NeraTel closed 1 cent lower at 35 cents on Tuesday.