TABY, Sweden, April 28, 2004 (PRIMEZONE) -- Enea is streamlining its operations and focusing on the Company's OSE products and services. This will result in the sale of three units in Enea's Swedish consulting operations with a total of 120 employees. At the same time, some 20 employees in the Group's support functions will be given notice. The streamlining effort is aimed at creating the conditions for expansion and increased market share.
Focus on OSE
Enea's Board of Directors has made a decision to focus on the Company's core business in the real-time operating system OSE, product-oriented consulting and related qualified services. The ambition is to strengthen and advance Enea's position in embedded real-time technology and maximize return on the company's expertise and innovativeness in this area.
"The vision is to establish Enea as the undisputed world leader in real- time operating systems and related services for the telecom market. Centered around the OSE product family, we will successively build up a comprehensive consulting and service offering with local presence in prioritized markets", says Enea's President and CEO Johan Wall.
The focus on the OSE product family means that a higher share of Enea's revenue will consist of license fees. In 2003 Enea began an in-depth assessment of revenue sources in which old license agreements and business models are being looked over and renegotiated. The primary goal is to redistribute revenue streams from a few major non-recurring receipts to a steady inflow based on subscriptions and royalties. The Market
The global market for real-time operating systems has an estimated value of around USD 750 million annually, of which telecom applications account for more than a third, and is characterized by strong underlying growth. Furthermore, a process of consolidation is taking place in the industry structure.
At present it is estimated that Enea's OSE product is inside more than 15 percent of the world's mobile phones and around half of all base stations. In a longer perspective, more than half of all mobile phones and base stations worldwide are expected to use OSE for 3G networks.
"Today, many of the leading telecom manufacturers use OSE in their equipment. Our focus on OSE in combination with intensified marketing activities will create favorable conditions for further realizing the growth and profitability potential of this market", says Johan Wall.
Effects of Streamlining
As a consequence of the streamlining process, three of Enea's consulting operations: Enea Redina, Enea Software Solutions and Enea Industry, will be sold and some 20 employees mainly in the Group's support functions will be given notice. Union negotiations have started and a review of the Group's cost base is underway.
The streamlining process is scheduled for completion during the current year and is expected to generate non-recurring costs of around SEK 40 million, of which SEK 19 million have been charged to earnings for the first quarter of 2004. In 2003, the units to be sold had aggregate sales of around SEK 103 million, a combined operating profit of just over SEK 1 million, and around 120 employees.
Changes in Management
The process of recruiting a new President for Enea Embedded Technology has been started. In the mean time, Peter Johansson, currently President of Enea Systems, will serve as Acting President and Patrik Holm from the subsidiary Enea Epact will take over as President of Enea Systems.
Invitation to Telephone Conference
In view of the above changes and the interim report for first quarter of 2004, Enea will hold a telephone conference today, Wednesday, April 28, at 10:00 a.m. in Swedish at telephone number +46 (0)8-7277750 and at 3:00 p.m. in English at telephone number +46 (0)8-7277751.
For more information, please contact: Johan Wall, President and CEO, +46 (0)8-50714109 Gunilla Spongh, CFO, +46 (0)8-50714150
Facts about OSE
OSE a world leading real time operating systems (RTOS), primarily for the telecomindustry. Around half of all telecom radio base stations and 15 percent of all mobile phones in the world have OSE inside. OSE's characteristics are uniquely suitable for telecominfrastructuresystems. These characteristics include reliability, robustness, scalability and modularity. Enea provides OSE and related consulting services and support to leading telecomindustry clients world wide.
Enea Data AB's stock is listed on the Stockholm Stock Exchange's Attract- 40-list.
For more information about Enea, visit our web sites, www.enea.com and www.ose.com
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