“Another demanding year lies behind us during which we witnessed the negative trends that fully reflected to ICT industry. This particularly applies to slowing down and reducing investments by telecom operators into the infrastructure and to decrease in government investments into ICT infrastructure projects, along with the constant pressure to prices. The operators demonstrate more caution due to uncertainty about economic development, and some instability in our major export markets.
In line with that, Ericsson Nikola Tesla business operations recorded the decrease in orders booked by 11 per cent, and the sales revenues decreased by 4 per cent, year over year. The trends of sales earnings reflected the revenue increase both at the regional and Ericsson markets, thus considerably mitigating the drop in sales volume on the domestic and CIS markets.
The gross margin was lower year over year, and was the result of the continuous pressure to prices on all markets and investments into export markets in order to provide new business and enlargement the market share. Furthermore, the net margin was impacted by the product mix and services sales, lower margins in certain ICT projects, within the business segment of Industry and Society, and investments into development projects. The net profit in 2011 amounted to MHRK 28, and the cash flow from operating activities amounted to MHRK 135.
Despite the given challenges the company performance was stabile and it managed to retain, and in certain markets even to enlarge its market share.
In the period to come, we shall endeavor to strengthen our position in all business segments and in all company markets. In doing so, we will focus on growth, improving existing operations and cost optimization. Innovation and proactive attitude towards the needs of users of our products and services, constant adaptation to technological, market and competitive conditions and responsible risk management and investment are the backbone of our future business development.
