Weak demand for Nolato Telecom's existing product portfolio

Weak demand for Nolato Telecom's existing product portfolio

As a result of weak demand for its existing product portfolio, Nolato
Telecom expects the business area's sales for the first quarter to be in
the region of SEK 250 million, with a slightly negative operating income
(EBITA).

“Since the Chinese New Year, we have experienced low sales of existing
products as a result of weak consumer demand,” says Hans Porat,
President and CEO of Nolato. “This came as a surprise. Although we are
now working as planned on new customer project start-ups, the current
situation will have a significant impact on Nolato Telecom's sales and
income. There is also a general sense of uncertainty in the market in
relation to access to electronic components in the future as a result of
the natural disasters in Japan.”
As announced in the year-end report, Nolato Telecom had an older product
mix at the end of the year. Following a strong start to the year, with
stocks being built up ahead of the Chinese New Year in early February,
demand for Nolato Telecom's existing product portfolio has dropped
sharply. Nolato Telecom therefore expects its operating income (EBITA)
for the first quarter of 2011 to be slightly negative (32), with sales
in the region of SEK 250 million (320).
In connection with the above information, Nolato will be holding a
telephone conference (in Swedish) today at 9:30 a.m. President and CEO
Hans Porat and CFO Per-Ola Holmström will be taking part. The telephone
number for the conference is +46 (0)8 30 17 90. The meeting code is
389917.
The full quarterly report for January to March 2011 will be published on
27 April.

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For further information, please contact:
Hans Porat, President and CEO, telephone 46 431 442294
Per-Ola Holmström, Executive Vice President and CFO, telephone 46 431
442293