Communications and network solutions provider Nera Telecommunications N01 (NeraTel) announced in its 1QFY2024 ended March business update that its revenue has declined by 44.7% y-o-y to $22.3 million from $40.3 million a year ago.
This was mainly due to lower contribution from the group’s Government, Transport and Utilities segment and service provider segment, both of which saw a 75.4% and 32.3% y-o-y decline. The decline was partially offset by higher contributions from the Enterprise sector.
Gross profit margin increased to 21.8% in 1QFY2024, compared to 21.2% in 1QFY2023.
Meanwhile, it’s order intake has grew 61.1% y-o-y to $42.7 million from $26.5 million, as it continued to pursue higher-value projects as part of its transformation. Fresh projects secured across all three business segments contributed to the growth.
NeraTel secured two strategic projects in 1QFY2024. The first, valued at $10 million, was secured in January for a leading Southeast Asian service provider’s digital economy operations; the second involved being part of a consortium that secured a $20 million project in February to revamp Singapore’s bus ticketing depot system.
On the outlook, the group is focused on executing its corporate strategies, which include extending its service portfolio to offer new services such as cybersecurity, enterprise service management and artificial intelligence-enabled solutions, and diversifying its customer base into the logistics, transportation, oil & gas, utilities, and financial services industries.
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That said, the group remains cautious of headwinds in the operating environment, such as volatile economic conditions, heightened geopolitical tensions, and higher operating costs due to inflationary pressures
Chong Hoi Ming, CEO of NeraTel says: “The Ggoup navigated a challenging quarter, recording a robust growth in order intake, despite a decline in revenue. The higher order intake underscores our strategy to develop a pipeline of high-quality projects that minimise collection risks and enhance cash flow.“
As at 9.32am, shares in NeraTel are trading at 8.2 cents.
