Teleste sales sink
August 18, 2020
Teleste, the Finnish broadband technology provider, saw sales fall significantly in Q2 as network upgrades were halted due to Covid-19 restrictions.
Group net sales fell 20.7 per cent to €33.5 million for the quarter, and the company posted a loss of €2 million compared with a profit for €1.4 million for the prior year period. Video and broadband orders were €25 million, a decrease of 31 per cent.
Teleste said that the fall in orders reflected both the ability of customer to work during the pandemic and by operator’s expectations regarding the transition to distributed access architecture technology.
CEO Jukka Rinnevaara said that “new distributed access architecture products are currently being tested together with customers in Europe and the USA, but the Covid-19 pandemic is slowing down the testing process”.
Rinnevaara added that the gradual lifting of restrictions had led to an improvement in June but that the situation “remains difficult in certain markets, such as the USA”.