Thursday, October 14, 2010

Nera Telecommunications

- Strong balance sheet.
- Strong Cash position, about 33.3M.
- Cash generated from Operations - about 15.6M.

The Group’s business comprises of two main business segments, namely Telecommunications and Infocommunications.

Telecommunications
The Telecommunications
business segment comprises two
main business areas:
Transmission and
Satellite Communications.
In the nine months of 2010, the
Group’s Telecom business
segment managed to secure
about $46 million in order intake.
A robust increased of 39% yoy growth on the order book(3rd Qtr Report).

Competition in the Infocomm
industry remains intense with the
Group competing with various
global IT vendors, partnering local
system integrators and resellers.
In the nine months 2010, the
Group’s Infocomm business area
managed to secure about $81
million in order intake.
A 35% yoy growth towards the order book.

In the Service Providers market sector,
the Group believes that growth will be
driven by continued consumer demand
for broadband services as a result of
the surge in web-internet access and services.
The Group believes that its strong
focus on providing high performances
and secured IP, Optical and Broadcast
network infrastructure products and
solutions will enable Service Providers
to deploy new and competitive services
to their customers.

It is estimated that the point of sale terminals will
increase as Singapore transitions to become a cash-less society.

With the strong order books and couple with an dividend yield of about 8.8%.
This stock has the potential to perform well and thus might drive the stock price higher.


N.B.
(Invest at your own decision)

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