TELESTE CORPORATION INSIDER INFORMATION 27 March 2020 AT 19:30 EET
TELESTE TO WITHDRAW ITS FINANCIAL GUIDANCE FOR 2020 DUE TO THE COVID-19
Teleste withdraws its financial guidance for 2020 due to the potential impacts of the COVID-19 pandemic and economic uncertainty. Due to the COVID-19 pandemic, many European countries in Teleste's main market area have imposed strict and extensive restrictions on the daily functioning of society. Depending on the duration and extent of the measures taken, it is extremely difficult to estimate the negative impact on Teleste's net sales and adjusted operating result. Consequently, Teleste withdraws its financial guidance for full-year 2020 which was issued on 13 February 2020. Teleste will update its outlook and will give new guidance when the visibility is improved and the effects can be estimated reliably.
“Teleste's products and solutions are part of society's essential and even critical functions, such as high-speed broadband connections, public transport solutions and safety and security. Safeguarding the incident-free operation of these infrastructure services is particularly important during crises.
The burden on broadband networks has increased during the pandemic, but we estimate that, in order to ensure the smooth functioning of broadband services critical to society, network upgrades will be postponed to some extent. In addition, regulations imposed by the authorities restrict the performance of field services in certain markets.
The order backlog of video security and information solutions is record-high, but the global crisis caused by the COVID-19 pandemic will delay some customer projects and endanger the availability of certain critical components, which is estimated to have a negative impact on net sales.
Until now, the impacts of the COVID-19 pandemic on the demand for Teleste's products and the company's ability to deliver have been limited. However, the situation is changing day by day. Effects on the services business can be substantial. If they are prolonged, the restrictions will have a negative impact on the company's net sales and profitability,” says Jukka Rinnevaara, President and CEO of Teleste.
President and CEO
CEO Jukka Rinnevaara, +358 2 2605 611