French set-top box maker Technicolor, (which used to trade as Thomson) saw revenues fall back significantly in Q3, at €837 million, down nine per cent y-o-y. Technicolor’s technology-based revenues slumped 25 per cent when compared to last year’s same quarter.
Its Entertainment division, which includes elements such as digital cinema, grew 6.2 per cent, helped by increased volumes of DVD and BluRay discs being shipped.
However, the company’s Digital Delivery revenues decreased by 17.6 per cent year-on-year at constant currency in the third quarter of 2011, as a result of a drop in global shipments of Digital Home Products, due in particular to continued market weakness in Europe partially offset by growth in Latin America and a more favourable overall product mix compared with the third quarter of 2010.
CEO Frederic Rose admitted that despite growing revenues for the first nine months of the year, the market situation was difficult, adding: “Digital Delivery has performed below our expectations. We have therefore started implementing actions in Digital Delivery in order to return it to profitability in 2012. Finally, we continue to focus on our cash generation, with the objective to achieve positive free cash flow in the second half 2011 and for the full year.”