December 22 (SeeNews) - Slovenian telecoms equipment maker Iskratel expects to move to an operating profit in 2014 backed by a 20% rise in revenue and anticipates stable sales next year despite the turmoil on the Russian market, local media reported on Monday.
Iskratel estimates its revenues at 105 million euro ($128.6 million) for this year and operating earnings at 4 million euro. This will be the first operating profit after six years of losses, CEO Zeljko Puljic told business daily Finance, adding that the improvement came after cost-cutting measures, including 120 layoffs.
The company has generated 90% of its revenues on foreign markets this year, with Russia contributing 40% of the sales. "We achieved better results than planned in Russia. We planned 36 million but made 46 million euro in revenue. We have also been successful in Turkmenistan and in Slovenia, where we are working on a GSM-R digital radio communications network for the Slovenian Railways," Puljic added.
Because of the collapse of the Russian rouble and the EU sanctions against the country, Iskratel anticipates a drop of 30% to 50% in inflows from the Russia. The company plans to offset the decline with growth in other markets and focusing on infrastructure projects.
Iskratel expects a $30 million contract in Turkmenistan for network modernisation and broadband deployment. It also foresees business growth in Turkey, India, China and Latin America and is preparing to enter the Iranian market when the sanctions against the country are lifted.
Iskratel, which provides products and solutions to the telecommunications sector, was set up in 1989 as a joint venture with German industrial giant Siemens. Now it is majority owned by the Iskratel group, after Siemens sold its 47.7% stake in the company and later Gorenjska banka offloaded its 25% interest.
($=0.8162 euro)