Elcoteq Releases First Half Interim Report; Says Nokia Not its Biggest Customer Anymore
25 July 2008
Elcoteq has released its interim report for the first half of 2008. The company's second quarter net sales totaled 904.8 million euros (968.3 million euros in April-June 2007). The second quarter operating income turned positive as expected, and totaled 0.6 million euros (-19.0). In spite of the net sales being lower than in the first quarter of 2008, the operating income clearly improved (-9.5 million euros in January-March 2008). Cash flow after investing activities in the second quarter was -78.5 million euros (-21.0). It was affected by the temporarily high finished goods and component inventory levels caused especially by a Personal Communications customer's overly optimistic forecast for the second quarter.
In business areas, personal communications contributed 70 percent, home communications 10 percent and communications networks 20 percent of the Group's net sales in the second quarter. Elcoteq said its largest customers (in alphabetical order) were Ericsson, Nokia Devices, Nokia Siemens Networks, Philips, Research in Motion (RIM), Sony Ericsson and Thomson. Over the past year and a half the company has significantly grown with several of its other major customers whereas the share of Nokia has declined and Nokia is not the biggest customer anymore.
