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CEO Padma Ravichander: Record high performance continues
In the first quarter of 2020, we continued where we left off last year. New profitability standard introduced was proven also this quarter. In spite of the exceptional global business environment followed by Covid-19 Pandemic, the positive momentum generated last year was reflected again as a record high quarterly result - the adjusted operating profit without out one-time costs was EUR 2.3 million or 23% of the revenue, being the best first quarter result in the company’s history.
The revenue in the first quarter was EUR 9.8 million (3% higher than the same quarter last year). The growth was continued especially strong in the Middle East and Africa (MEA) region being 28% and the net sales in the region formed 71% of the total first quarter revenue.
New orders recorded during the year amounted to EUR 19.8 million and order book grew EUR 10.0 million from previous year-end being at a very comfortable EUR 35.5 million level. The order book consist of 56% of project sales and 44% of recurring sales, whereas in the end of subsequent quarter last year recurring sales represented 73% of the total order book value of EUR 22.8 million, giving clear indication of growing market interest and supports revenue growth. During the last one year period, Tecnotree has recorded EUR 60.0 million worth of new orders.
Positive cash flow in the first quarter further stabilized Tecnotree’s financial situation. Investments to product development continued and I’m pleased to hear that product launches for another two new products were completed during the quarter. Increased focus to effective tax planning has also started to bear fruit reducing the amount of taxes paid, while growing the business at the same time.
Other Business Updates
Tecnotree continues to grow its business across global markets by increasing the presence of our brand and taking advantage of the onset of 5G implementations and the digital transformation requirements of our customers. We hope to synergize new partnerships with other internet of things (IOT) providers, to increase our competitive edge, our reach to new markets and to strengthen our customer base globally, so that our customers may benefit from the full range of the Tecnotree Digital BSS Suite 5 products and our high quality digital Deployment, Operational and Managed Services capabilities.
OUTLOOK FOR 2020
The company further strengthened and stabilized its operations and restarted capital deployment to fuel growth in 2019. In 2020 the company will continue to focus on market expansion and profitable growth.
Board of Directors
Padma Ravichander, CEO, tel +971 56 414 1420
Priyesh Ranjan, CFO, tel +971 50 955 1188 www.tecnotree.com