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Product category: Stand-Alone Instruments
News Release from: NetTest
Edited by the Electronicstalk Editorial Team on 20 April 2004

Modest profit is major recovery

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NetTest has released its 2003 financial results.

NetTest has released its 2003 financial results The Group's profit for the year 2003 was DKK 50 million (US $8.4 million) - a substantial improvement on the previous year, when the company suffered a loss for the year of DKK 4822 million (US $809 million)

The revenue was DKK 550 million (US $92.3 million), representing a decline from 2002 of DKK 280 million (US $47 million), which was the result of divestments and closure of activities in connection with a changed, focused strategy.

On the ongoing activities, NetTest realised some growth in 2003 despite weak market conditions.

At the end of 2003, the company's equity amounts to DKK 140 million (US $23.5 million), an increase of DKK 211 million (US $35.4 million).

2003 was NetTest's first year with the new ownership after the company was acquired on 31st December 2002 by Axcel, a leading Danish investment company, and the new management.

The year under review was characterised by simplification and focusing of the company's processes, resulting in restructuring and divestment of activities that no longer form part of the future strategy.

NetTest now focuses on network monitoring systems as well as test and measurement instruments for telecomms operators and major enterprises.

The number of employees was reduced from 797 at the end of 2002 to 430.

In the course of 2003, NetTest started taking on employees again, bringing the present number of employees up to 480, of which 200 work in Denmark.

In addition to activities in Denmark, NetTest has subsidiaries in USA, France, Italy and China.

"2003 was a difficult year, but we maintained the necessary focus on our primary activities and succeeded in creating a good working environment in which we have obtained a positive financial result, not least because of the big effort put in by our employees", says Allan J Vestergaard, President and CEO of NetTest.

"We were very pleased to see our customers show us trust, thereby enabling us to maintain good, existing business relationships.

Furthermore, we have welcomed new customers and are offering new, exciting products and services".

"The restructuring and focusing of NetTest went satisfactorily and according to plan and resulted in a positive cash flow from our operations at the end of the year.

The strategy of focusing on network activities turned out to be correct - we are now taking on new employees and are engaging in the development of new products, so the future looks promising", says Kaj Juul-Pedersen, Chairman of the Board of NetTest.

NetTest expects to increase its research and development activities during 2004, and also to deliver positive net income and growth in revenues.

During 2004, NetTest will focus on profitable and controlled growth, cash flow and reduction of working capital.

At last week's annual general meeting of NetTest Holding, a capital increase of DKK 25 million (US $4.2 million) for financing further growth was approved.

Furthermore, Henrik Heideby, CEO of PFA, was elected as a new member of the Board of Directors.

Going forward, the Board of Directors will include Kaj Juul-Pedersen (Chairman), Per Christensen (Axcel), Christian Frigast (Axcel), Henrik Heideby (PFA), Agner Mark (Mach, Luxembourg) and Kare Stolt (Accura).

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