Interim Report January-September 2008 Teleca Q3 2008: Focus on strengthening core business after completing exit from products Key figures, SEK million 2008 Q3 2007 Q3 % 2008 YTD 2007 YTD % Operating 228 241 -5 743 747 -1 income Operating -343* 4 n.a -355* -2 n.a earnings (EBIT) Earnings for -359* -3 n.a -392* -108 n.a the period from continuing operations Earnings for -25** 5 n.a -6 -244*** n.a the period from discontinuing operations Net earnings -384 2 n.a -398 -352 n.a for the period* Earnings per -5.00 0.02 n.a -5.69 -5.14 n.a share, SEK* Cash flow -19 -8 n.a -54 -211 n.a operating activities Cash flow -9 -24 n.a -56 552 n.a after investments * Continued operations for Q3 2008 include a goodwill write-down of SEK 345 million. ** Discontinued operations for Q3 2008 include a goodwill write-down of SEK 42 million related to the French subsidiary. *** Discontinued operations for 2007 YTD includes write-down of goodwill of SEK 357 million, write-down of capitalized expenses for development of SEK 101 million, provisions for restructuring of SEK 27 million and a capital gain of SEK 369 million mainly related to the auSystems transaction. Third quarter highlights · Revenues (excluding discontinued operations) totaled SEK 228 million (241) representing a negative growth of 5% compared to the third quarter 2007. Growth in local currencies was -2%. · Teleca reports operating earnings (EBIT) of SEK -343 million (4). The result includes one time charges of SEK 345 million related to the earlier announced write-down of goodwill. EBIT excluding one time charges was SEK 2 million. · Teleca's product business is in the process of being divested, and therefore this business is reported under discontinued operations. In the third quarter Teleca divested its French subsidiary which is also reported under discontinued operations. · To gradually restore growth in the business and significantly improve profitability Teleca will increase investments into building off-shore capability and strengthen sales& marketing efforts into new market segments. At the same time the company will reduce risks in high cost countries. Press and analyst conference Teleca will host a conference call to present the earnings figures at 10.00 (CET) on 21 October 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 · Leif Nørgaard, CFO, Teleca AB, mobile +46-738393040 · Mattias Stenberg, Investor Relations Manager, Teleca AB, mobile +46-706119616
Interim Report January-September 2008
| Source: Teleca AB
Attachments
