Increased revenue for Zenitel in 2012
It is 3 years since we did the strategic reorganizations of the group in 2009. We were confident that by focusing on the profitable businesses of the company, it would allow Zenitel to continue its investments in the Secure Communication Systems and ChuChubi businesses as well as to reduce its financial debts. The results of the group over the past three years have proven that these assumptions were correct.
2012 was a good year for Zenitel. Some financial highlights:
- Total revenue amounted to 64.7 million euro, up 3% over 2011.
- Recurrent EBITDA amounted to 4.7 million euro, up from 4.3 million euro in 2011, an increase by 9%.
- Net profit increased to 0.9 million euro, against 0.5 million euro in 2011.
- Net debt and provisions decreased further by 2.9 million euro from 13.5 million euro to 10.5 million euro.
Despite the depressed and uncertain European and worldwide economic environment, we delivered a profitable top line growth, based on hard work from our employees and partners all around the world. Our focus to bring new products with state of the art technology to the market as well as to bring new customers and partners into the Zenitel family, gave us the revenue growth that we always believed would be possible. As we continued to aim for higher sales volumes, we also remained committed to create value for shareholders by growing our EBITDA even higher.
Strategic choices and operational effiency paramount in securing results
«It is not a mere coincidence that we have been able to preserve our gross margin, but rather the result of our strategic choices. First of all, since the introduction of our IP based product portfolio, we have gradually continued to shift our products and services from hardware to software based solutions. Secondly product rationalization and operational efficiency are key elements that we constantly monitor and improve to continuously reduce our costs» said Kenneth Dastol, CEO of Zenitel.
«In 2012, Zenitel launched a new series of IP stations called ‘Turbine’. The feedback from the market has been better than expected, and due to our newly developed products we have already been able to win major projects in all our market segments. The sales impact of these new products has yet to be fully realized», Dastol said.
«Whilst carefully managing our cash resources, our strategy has always been to continue investing in new products and markets. Also in 2013 we will focus on our core business and bring our new products and solutions to the market. During the coming year we will launch more IP stations of the Turbine technology as well as our new digital Public Addressing platform particularly aimed to generate new business in the Oil & Gas segment», said Dastol.
Debth significantly reduced
During 2012 Zenitel’s reduced its debt by 1.6 million euro, additionally the provisions further decreased by another 0.7 million euro. Since December 2009, the net debt and provisions decreased by 7.5 million euro, from 18.0 million euro to 10.5 million euro, as a result of our debt reduction efforts. The ratio of Net debt and provisions over recurrent EBITDA decreased from 5.4 at the end of 2009 to 2.3 at the end of 2012.