For the year ended December 31 2004, services revenue increased by 12% to 203m euros ($268.2m), equivalent to 38% of total sales, while product sales fell 2% to 330m euros ($436.1m). Under its ‘Flagship 2006’ project, Telindus is aiming for an even split between network services revenue and network products revenue by 2006.
Heverlee, Belgium-based Telindus reported a net loss of 3.0m euros ($4.0m), up from a loss of 10.6m euros ($14.0m) in the previous year, on revenue that increased by 2.7% to 532.1m euros ($703.4m). However, the company’s net cash position declined to 10m euros ($13.2m), compared to 61m euros ($80.8m) in 2003.
The company’s home market of Benelux recorded an operating profit of 16.6m euros ($22.0m), compared to a loss of 500,000 euros ($662,000) in 2003, on revenue that grew 18% to 251m euros ($331.7m). Telindus struggled in the BINCE, which includes the UK and Germany, reporting an operating loss of 600,000 euros ($794,000) on revenue that fell 12% to 74m euros ($97.8m).
Looking ahead to 2005, the company forecast that it would achieve net profitability, alongside further strong growth in services sales.
