Teleste lowers guidance for 2019 amid lower orders for access network products

Tuesday 3 December 2019 | 08:16 CET | News

Finnish networking specialist Teleste has lowered its guidance for 2019. Teleste expects the company's net sales and operating profit to come in below 2018's results, of respectively EUR 250.3 million and EUR 9.7 million. Under its previous guidance, Teleste expected syable sales and an increase in adjusted operating profit.  

Teleste said operators' investments in distributed access architecture have been further delayed compared with previous schedule estimates due to technology transformation. The order backlog for access network products has decreased during the current quarter and, according to Teleste’s most recent estimates, deliveries of access network products will remain below the company’s previous forecast in 2019.

In addition, net sales and operating result forecasts for 2019 have decreased from the previous estimates in the network services business area. In video security and information services, Teleste has proceeded according to its growth targets, but the growth does not compensate for the reduced demand of cable operators in the fourth quarter.

In the medium and long term, Teleste says prospects in its business field are still favorable. Teleste’s main objectives are a leading position in distributed access architecture products in Europe and a significant position in the North American markets. The company expects that new investment projects based on distributed access architecture will be launched in Europe and North America in 2020 and accelerate during the second half of the year. As for video security and information solutions, Teleste still expects growth and profit improvement and it aims for a leading position in public transportation information and security services. In the network services business area, the main focus is on the development of operational activities as well as growth in higher added value services.

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Categories: Fixed
Companies: Teleste
Countries: World
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