Telecommunications service provider Nera Telecommunications has reported revenue growth of 22.4% in its 1QFY2022 ended March.
In a business update on May 23, NeraTel revealed that its revenue in 1QFY2022 grew from $22.8 million to $27.9 million, mainly due to the strong closing order backlog carried forward from the year ended Dec 2021.
Notably, NeraTel says it has made “major improvements” in its government, transport and utilities (GTU) customer sector.
For 1QFY2022, revenue rose 100% to $7.2 million for this sector, mainly due to an increase in IT infrastructure investments as a result of the progressive reopening of the economy with the “Living-with-COVID strategy”.
Revenue from the Service Providers segment also recorded a 21% increase from $14.3 million in Q1 2021 to $17.3 million in Q1 2022.
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NeraTel recorded a total order intake of $22.2 million in 1QFY2022, a decrease of 17.8% from $27 million in 1QFY2021.
This was a result of its “cautious approach” in the selection of new bids, and therefore is delaying the conversion of those bids into orders.
“Our customer diversification strategy continues to bear fruit,” NeraTel says, with orders from the GTU segment rising 622.2% to $6.5 million in 1QFY2022, up from $0.9 million in the same period last year.
NeraTel says throughout the pandemic, it has “remained resilient and positive,” adding it has “deployed cautious diversification and restructuring plans in preparation of the new age that dawns in the post-pandemic era.”
It highlighted that it is undergoing a “strategic review and rejuvenation”, where NeraTel is actively recruiting new talents and augmenting the current team to reinforce its sales and delivery capabilities.
This is in line with the new demands from the growing opportunities we are seeing from the market sectors that we are servicing to position ourselves for the expanding growth.
Furthermore, NeraTel has been focused on optimising working capital and improving NeraTel’s cash flow through better management of accounts receivables and accounts payables.
Moving forward, the company is aiming to further tap on the trend of remote working as it continues to be the default mode for businesses and organisations in Singapore and globally.
NeraTel says it has diversified and expanded into more sectors and business streams, answering to the changes requested from customers as public and private businesses strengthened their IT hardware, storage and security infrastructures throughout the pandemic period.
“With global and regional enterprises shifting to permanent remote working practices, we are confident that the investments into the new era will fuel a rapid recovery for NeraTel as a whole.”
Shares of NeraTel closed at 9 cents on May 23, 0.4 cent higher or up 4.65% compared to its previous close.
