Teleca on Financial Target 

Teleca announced its year-end result for 2007 on February 7.

Fourth quarter highlights

• Revenues of SEK 366 million (356). Consulting reported revenues of SEK 311 million (300). The consulting business showed 5% growth in the second half of 2007 compared to the first half.
• Product revenues amounted to SEK 55 million (56), which were higher than expected.
• Teleca reports operating earnings (EBIT) of SEK 42 million (-57) and a 12% operating margin (-16%). Consulting contributed with SEK 26 million (36) to the operating earnings and Products with SEK 16 million (-93). The result in Consulting includes redundancy charges of SEK 4 million in Asia.
• Net earnings for the quarter amounted to SEK 25 million (-64).
• Earnings per share for the quarter amounted to SEK 0.41 (-1.03).
• Cash flow from operating activities of SEK -32 million (6), negatively impacted by temporary increase in working capital at year end due to delayed payments from larger customers as well as restructuring earlier accounted for of SEK 23 million.

René Svendsen-Tune, President and CEO of Teleca, says:
“I am very pleased with the strong result in the fourth quarter. We have restored growth in our services business, with a modest growth in consulting revenue of 4% in fourth quarter y-o-y and a 5% growth from the first half to the second half of 2007. Year over year our net sales per employee increased 13% in the quarter. Our margins exceeded the 10% threshold and the order intake was good in the quarter. All in all execution was just in line with our plans and I want to congratulate our staff; they can be really proud of their achievements."