Brief: Enea AB - Encountered Problems That Primarily Affected Telecom Operations, Which In Turn Affected Growth And Profitability Of Whole Company

Enea AB

18/07/2023 07:27

July 18 (Reuters) - Enea AB  ENEA.ST :
    * ENCOUNTERED PROBLEMS THAT PRIMARILY AFFECTED TELECOM
OPERATIONS,
WHICH IN TURN AFFECTED GROWTH AND PROFITABILITY OF WHOLE COMPANY
    * IN BEGINNING OF Q2, ONE OF OUR MAIN TELECOM CUSTOMERS
ANNOUNCED
THAT IT DID NOT INTEND TO CONTINUE WITH A PROJECT THAT WAS
SIGNIFICANT TO US
    * CUSTOMER'S DECISION NOT ONLY AFFECTS OUR FUTURE PLANS, BUT
ALSO
BURDENS INCOME STATEMENT OF Q2
    * INITIATED AN AUDIT OF OUR OPERATIONS IN TELECOM AREA TO
REVIEW
AND POSSIBLY ADJUST FUTURE POTENTIAL
    * WE ALSO NEEDED TO FACTOR IN A WORSENING MACROECONOMIC
OUTLOOK
    * RESULT IS A WRITE-DOWN OF INTANGIBLE ASSETS WITH A TOTAL
OF SEK
520 MLN, ATTRIBUTABLE TO GOODWILL AND CAPITALIZED DEVELOPMENT
COSTS
    * MADE PROVISIONS FOR BAD DEBTS AND UNRECEIVED INCOME OF SEK
64
MLN
    * DURING Q2, OPERATING CASH FLOW WAS SEK 77 MLN (73)
    * REDUCING CAPITALIZATION OF OUR DEVELOPMENT COSTS BY SEK 13
MLN
COMPARED TO SAME PERIOD LAST YEAR
    * WE CLOSE ONE OF OUR DEVELOPMENT CENTERS IN INDIA AND SHUT
DOWN
OPERATIONS THAT WERE RELATED TO CANCELED PROJECT
    * MEASURES AFFECT 70 EMPLOYEES AND EXTERNAL CONSULTANTS AND
IMPROVE CASH FLOW BY ABOUT SEK 60 MLN PER YEAR

Source text for Eikon:  ID:nMFN6q4pqV 
Further company coverage:  ENEA.ST 

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