Interim Report January-June 2008

Interim Report January-June 2008

Teleca reports EBIT margin of 6% and underlying growth in services of
4%; cautious outlook for H2 2008   

Key figures,
SEK million    2008 Q2  2007 Q2         %    2008 H1   2007 H1         %
Operating          308      324        -5        604       642        -6
income
Operating           18      -55       n.a          8     -598*       n.a
earnings
(EBIT)
Earnings for        11      -67       n.a        -14      -704       n.a
the period
from
continuing
operations
Earnings for         -      -34       n.a         -        350       n.a
the period                                        
from                                              
discontinuing
operations
Net earnings        11     -101       n.a        -14      -354       n.a
for the
period
Earnings per      0.16    -1.62       n.a      -0.21     -5.68       n.a
share, SEK
Cash flow          -22     -150       n.a        -35      -202       n.a
operating
activities
Cash flow          -25      619       n.a        -47       576       n.a
after
investments

* H1 2007 EBIT includes write-down of goodwill of SEK 357 million,
write-down of capitalized expenses for development of SEK 104 million
and provisions for restructuring of SEK 41 million.
Second quarter highlights
§  Revenues totaled SEK 308 million (324). Service revenues totaled SEK
276 million (277) Adjusted for negative currency effects of SEK 13
million, services revenues increased by 4%. Product revenues amounted to
SEK 32 million (47).
§  Teleca managed to recover from a difficult situation in Q1 and the
profitability is in line with our revised expectations. Teleca reports
operating earnings (EBIT) of SEK 18 million (-55) and a 6% (-17)
operating margin. The result includes expensed cost of SEK 10 million
for the closure of two small sites in Europe and early termination of
lease agreements for excess facilities.
§  Teleca has been taking significant steps during the second quarter to
refine its plans to be able to execute upon long-term profitable growth
in off-shore services in the wireless industry. Teleca will continue to
execute those plans through the balance of 2008, while being cautious in
the short term with regards to a difficult market environment. 
Press and analyst conference
Teleca will host a conference call to present the earnings figures at
08.30 (CET) on 18 July 2008. Call SWE +46 (0)8 505 59853, UK +44
(0)20 3043 2436 or US +1 866 458 40 87, or follow live via the internet
at www.teleca.com.
For more information contact
§  René Svendsen-Tune, President and CEO, Teleca AB, mobile +45-40540068
§  Christian Luiga, CFO, Teleca AB, mobile +46-703751604
§  Mattias Stenberg, Investor Relations Manager, Teleca AB, mobile +46-
706119616