Almost done! Please Select Your Region To Receive Customized Content
Select Your Region
Your information is safe and secure with us
Nera Telecommunications has declared a 15 cent special dividend from the disposal of its payment solutions business to Ingenico Group S.A. in May for $88.4 million.
For 3QFY16, the telco group reported a loss from continuing operations net of tax of $1.32 million after the divestment, reversing from a profit of $1.6 million for 3QFY15.
Including the divestment gain of $66.2 million, profit from its continuing and discontinued operations was $64.9 million.
Revenue rose 20.4% to $33.8 million, from the higher revenue contributions of both its business segments, Telecommunications and Infocomm.
Telecom revenue rose 1.7% to $13.3 million, on higher sales in Asia Pacific. Infocomm revenue rose 36.6% to $20.5 million due to the higher sales of network equipment.
However, gross profit margins fell by 13.2 percentage points from the devaluation of the Nigerian Naira against the US dollar, which depreciated by 59% since June 20.
Total operating expenses rose 17% to $8.5 million during the quarter. Distribution and selling expenses rose 14.1% to from higher payroll related costs and provisions for doubtful debts.
Other operating expenses also rose from higher exchange losses due to the devaluation of the Nigerian Naira, the depreciation of the Philippine peso against the US dollar, and the depreciation of the US dollar against the Singapore dollar.
Excluding the effects of the Nigerian Naira devaluation and the related $0.3 million foreign exchange loss, the group would have been profitable for the quarter.
NeraTel says that competition remains intense in both its operating segments but added that it has secured $136.6 million in order intake for the nine month period, which is an 8.9% improvement over the same period in 2015.
Shares in NeraTel closed 3 cents higher at 77.5 cents on Tuesday.
This article first appeared in The Edge Singapore Market Report.