MALMO, Sweden, March 16, 2005 (PRIMEZONE) -- Teleca has carried out a reorganisation aimed at strengthening its product business and increasing its regional market penetration and coordination in Sweden. Products strengthened with 150 staff Obigo, Teleca's world-leading software product for mobile phones, has been strengthened with an additional 80 or so Mobile Devices development engineers and integration resources close to product integration. The purpose was to transfer staff to Obigo who had already been working mainly with the Obigo product suite, which has now also been provided with the application Email Client. The pace of development of Obigo will be higher in 2005 compared with 2004. As accounted for in Teleca's year-end report the products PC Connectivity and Popwire have also been transferred from Mobile Devices to Products. Today both are mature software offerings with clear product logic. Among other things, PC Connectivity is used for synchronising PCs with mobile phones. The Popwire products convert multimedia files between different formats for diverse applications. In total about 70 staff have been transferred. ``In the past few years Obigo has established a world-leading position in the mobile phone software market, and we'll continue to invest to maintain our position in this expanding market. The strengthening of our product area will enable us to increase the pace of development and further improve customer service," says Dag Sundstrom, president and CEO of Teleca AB. "Our product business has the capability to continue growing very rapidly during the next few years."
Swedish activities reorganised as three customer-oriented regional units Most of Teleca's business activities in Sweden have been merged to form three regional units. The aim is to expand customer service, strengthen regional sales activities and improve the use of resources. The reorganisation does not affect the activities in Sweden of the Benima companies or the Network Equipment Providers business in Ostersund. ``We've reorganised our activities in Sweden into regions so that we can take better care of our customers and improve the use of our resources. The new organisation will enable our customers to have access to all our offerings via a single contact," says Dag Sundstrom. Teleca group consists of five divisions As part of the efforts to increase the focus on customers and have a clearer market profile, Teleca has been reorganised into five overall divisions.
Division Head of division Products Dag Sundstrom (acting head) Mobile Devices Konstantin Caliacmanis Network Equipment Providers Mike Gibbons Enterprises & Operators Orjan Frid Benima Tore Helgeson
The remaining members of Teleca's Leadership Group are Thomas Pantzar, Executive Vice President, Christian Luiga, CFO, and Bertil Matsson, Group Risk Manager.
Orjan Frid appointed head of Enterprises & Operators division
Orjan Frid will become head of the Enterprises & Operators division on 1
April. He is joining Teleca from Proact IT Group, where he was head of
Proact IT Sweden and responsible for the integration of Proact and
Dimension. Before this he was the CEO of Dimension.
``We're very pleased that Orjan Frid has decided to join us at Teleca.
Orjan has experience that will be very useful in his new post and to
Teleca's Leadership Group," says Dag Sundstrom.
In addition to the reorganisation, Teleca is implementing a group-wide
cost-efficiency programme that is expected to contribute to improved
margins during the year.
The divisions will form Teleca's primary basis of division for reporting
in segments according to International Financial Reporting Standards IAS
14 Segment Reporting. The new basis of division will be applied from 1
January 2005. Below are Teleca's results per segment for 2004, listed
according to Teleca's structure both before and after the
reorganisation.
Teleca's results per segment for 2004 (old organisation; SEK million)
Growth 04/
2004 Q1 Q2 Q3 Q4 Full year 03
Products
Sales 36.5 37.2 32.1 64.4 170.2 33%
Operating
earnings
(EBITA) 5.7 3.4 1.0 21.2 31.3
Operating
margin
(EBITA) 16% 9% 3% 33% 18%
Average
number of
employees 54 66 78 94 73
Mobile
Devices
Sales 271.9 294.9 291.1 361.8 1,219.7 36%
Operating
earnings
(EBITA) 19.0 9.6 5.1 23.8 57.7
Operating
margin
(EBITA) 7% 3% 2% 7% 5%
Average
number of
employees 1,029 1,137 1,338 1,416 1,230
Operators &
Networks
Sales 169.2 188.8 165.1 199.4 722.5 0%
Operating
earnings
(EBITA) 9.2 4.9 6.8 2.3 23.2
Operating
margin
(EBITA) 5% 3% 4% 1% 3%
Average
number of
employees 666 682 710 730 697
Enterprises
& Industry
Sales 206.7 213.9 173.7 235.9 830.3 1%
Operating
earnings
(EBITA) 5.1 5.0 6.2 16.9 33.2
Operating
margin
(EBITA) 2% 2% 4% 7% 4%
Average
number of
employees 847 749 792 784 793
Joint group
and
elimination
Sales -36.7 -62.3 -36.8 -78.4 -214.3
Operating
earnings
(EBITA) -6.1 -7.9 -6.4 -14.4 -34.8
Average
number of
employees 16 16 16 20 17
Group total
Sales 647.6 672.5 625.2 783.1 2,728.3 11%
Operating
earnings
(EBITA) 32.9 15.0 12.8 49.9 110.6
Operating
margin
(EBITA) 5% 2% 2% 6% 4%
Average
number of
employees 2,612 2,650 2,934 3,044 2,810
Teleca's results per segment for 2004 (new organisation proforma, SEK million)
Growth 04/
2004 Q1 Q2 Q3 Q4 Full year 03
Products
Sales 40.9 42.9 40.9 80.3 205.0 46%
Operating
earnings
(EBITA) 1.0 -0.5 -1.5 15.0 14.0
Operating
margin
(EBITA) 3% -1% -4% 19% 7%
Average
number of
employees 182 194 226 241 211
Mobile
Devices
Sales 254.1 274.6 268.0 328.0 1,124.6 28%
Operating
earnings
(EBITA) 23.7 13.6 7.6 30.1 74.9
Operating
margin
(EBITA) 9% 5% 3% 9% 7%
Average
number of
employees 901 1,009 1,190 1,269 1,092
Network
Equipment
Providers
Sales 101.8 102.5 90.3 108.8 403.3 -2%
Operating
earnings
(EBITA) 7.4 7.3 2.6 4.4 21.7
Operating
margin
(EBITA) 7% 7% 3% 4% 5%
Average
number of
employees 451 443 456 463 453
Enterprises
& Operators
Sales 164.9 173.1 141.9 191.3 671.2 -6%
Operating
earnings
(EBITA) 0.8 -3.9 2.2 3.7 2.8
Operating
margin
(EBITA) 0% -2% 2% 2% 0%
Average
number of
employees 613 526 573 559 568
Benima
Sales 106.4 123.4 104.1 132.3 466.2 14%
Operating
earnings
(EBITA) 6.1 6.4 8.3 11.1 31.9
Operating
margin
(EBITA) 6% 5% 8% 8% 7%
Average
number of
employees 449 463 473 493 469
Joint group
and
elimination
Sales -20.5 -44.2 -19.8 -57.6 -142.1
Operating
earnings
(EBITA) -6.1 -7.9 -6.4 -14.4 -34.8
Average
number of
employees 16 16 16 20 17
Group total
Sales 647.6 672.5 625.2 783.1 2,728.3 11%
Operating
earnings
(EBITA) 32.9 15.0 12.8 49.9 110.6
Operating
margin
(EBITA) 5% 2% 2% 6% 4%
Average
number of
employees 2,612 2,650 2,934 3,044 2,810
To present the changes Teleca willhold a press and analyst meeting today Wednesday 16 March at 13.30 at the company's head office, Arstaangsvagen 19B, Stockholm. Please report you participation to johannes.rudbeck@teleca.com. Teleca is an international telecom and IT services company focused on R&D that develops and integrates advanced software and information technology solutions. With in-depth expertise in the latest technology and profound industrial knowledge, Teleca helps technology- and software-intensive customers worldwide to strengthen their market positions and shorten their times to market. The company has more than 3,000 employees and operations in 15 countries in Asia, Europe and North America. Teleca is quoted on the Attract40 list of the Stockholm Stock Exchange. www.teleca.com
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