Telrad – a reversal in results against the background of the corona – the capital market

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Telrad Networks
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Reports a 24% increase in revenue for the quarter to $ 52.3 million, compared to about $ 42 million in the same quarter last year. The increase is mainly attributed to the field of communications and IT infrastructure due to the realization of a backlog of orders and new projects that have entered, as well as an increase in revenue in the field of products and services for communications operators due to an increase in BWA activity. Operating profit for the quarter rose to $ 4.4 million. On the bottom line, the company earned $ 1.8 million in the quarter.

The company’s revenues in the field of communications and IT infrastructure Increased in the quarter by about 61.7% to about $ 29.4 million, compared to about $ 18.2 million in the corresponding quarter last year. The increase in revenues was due to the realization of the backlog of orders and new projects, including in the health services sector due to the corona crisis. The operating profit of the segment in the quarter increased to about $ 1.5 million, compared to the operating profit of about $ 0.73 million in the corresponding quarter last year. As of the end of 2020, the company has accumulated orders in this area of ​​activity of approximately $ 70.5 million. Operating profit for the quarter rose to $ 4.4 million.

The company’s revenues in the field of products, solutions and services for communications operators Increased in the fourth quarter by about 17.3% to about $ 15.6 million, compared to about $ 13.3 million in the corresponding quarter last year. The increase in revenue is mainly due to an increase in revenue from BWA operations, which continues to grow and show profitability. The increase in revenue is due to a number of reasons, including the increase in Internet demand in the background of the spread of the corona virus, the increase in government budgets for communications and the provision of incentives for government and government agencies to increase the use of existing media and improve existing communications equipment. And more. The segment’s operating profit improved, rising in the quarter to about $ 2.1 million, compared to an operating loss of about $ 2.6 million in the corresponding quarter last year. As of the end of 2020, the company has accumulated orders in this area of ​​activity of approximately $ 38.1 million.

The company’s revenues in the field of business process outsourcing and project management, Including the revenues of Marmanet and its subsidiary Gao-da, amounted to approximately $ 7.3 million in the quarter, compared with approximately $ 10.5 million in the corresponding quarter last year. The decline is due to the continuing trend of a lack of government budget approval and the impact of the corona crisis. The operating profit of this segment amounted to approximately $ 347,000 in the quarter, compared with an operating profit of approximately $ 390,000 in the corresponding quarter last year. As of the end of 2020, the company has accumulated orders in the amount of approximately $ 70 million in this area of ​​activity.

Results 2020
The Company’s revenues in 2020 increased by approximately 18.6% to approximately $ 181.1 million, compared with approximately $ 152.7 million in 2019. The increase in revenues is attributed to revenue growth in the Company’s three operating segments. Operating profit increased to approximately $ 13.3 million, compared to an operating loss of approximately $ 25.3 million in 2019. Net income increased to approximately $ 8.6 million, compared to a loss of approximately $ 34.5 million in 2019.

Against the background of the reports, Moti Elmaleh, CEO of Telrad, said: “We summarize the year 2020, which was challenging, with record revenues, growth in operations abroad and a significant improvement in most business parameters, a significant increase in EBITDA and an increase in net profit to 8.6 million. dollar.

“In the communications infrastructure and IT solutions sector, we are showing significant growth in activity in light of the realization of the backlog of orders and the entry of new projects, as well as an increase in demand from communications and government bodies (in the health and security sectors) under Corona.

“As part of this segment, Magalcom has won a number of large and long-term tenders for the establishment of communications infrastructure that will help the sector grow in the coming years.

“We continue to enjoy an increase in demand for the company’s BWA products in the U.S. and around the world, among other things in light of the increase in Internet demand, as well as a strengthening of the company’s competitive position.”