Nera Telecommunications (NeraTel) announced that its FY2023 ended Dec 31, 2023, earnings came in at $5.5 million, reversing from a loss of $7.3 million a year ago.
The FY2023 earnings was achieved on the back of higher revenue with gross profit margin of 22.0%, reflecting its shift towards better quality of projects secured. The bottom-line was also lifted by the net gain from the disposal of its Singapore property, narrower forex losses and deferred tax assets adjustment that arose from deductible temporary differences and unused tax losses.
Revenue for the period was 6.9% higher y-o-y at $141.7 million from $132.5 million last year. The increase was driven by higher contributions from the Government, Transport and Utility (GTU), as well as Enterprise sectors.
As at end-December 2023, cash and cash equivalents stood at $20.5 million.
The board has proposed a first and final dividend of 0.5 cent per share.
The group recently secured two strategic projects – one in January worth $10 million with a leading Southeast Asian service provider to implement infrastructure across 30 sites for the latter’s digital economy operations and one in February worth $20 million as part of a consortium with Panasonic subsidiary RFNet Technologies to revamp Singapore’s bus ticketing depot system.
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Chong Hoi Ming, CEO of NeraTel says: “NeraTel has recorded a commendable performance in the face of a challenging operating environment. The improved bottom-line and positive cash flow from operations as well as strategies to improve deal quality position us well to capture opportunities in new markets and new services.”
Basil Chan, chairman of NeraTel adds: “Moving forward, the NeraTel team remains committed to adding long-term value for our shareholders.”
Shares in NeraTel traded 3.8% higher on Feb 29 at 8.3 cents.
