Transmode, which supplies packet optical networking solutions, announced preliminary sales for the fourth quarter 2013 of SEK 223 million (US$35 million), which is below the expected level reported previously.
CEO Karl Thedéen commented: "Order intake in the fourth quarter was in line with our expectations and the fourth quarter of the previous year. The main reason for fourth-quarter sales being below the expected level stated in the Third-quarter Interim Report is that we could not recognize late orders as revenue during 2013."
The company's preliminary sales for the fourth quarter 2013 were SEK 223 (251) m, down by 11.1%, preliminarily. In the Third-quarter Report, the company communicated "As a result of the situation in the Americas and the merger of two of our major European customers, the company's sales in the fourth quarter will show low growth compared to the corresponding quarter of the previous year."
Preliminary fourth-quarter sales by region were as follows: Europe, SEK 193 (200) m; Americas, SEK 24 (46) m and APAC, SEK 6 (5) m.
Preliminary operating profit for the fourth quarter 2013 is expected between SEK 8.3 m and SEK 9.6 (37.1) m, equating to an operating margin of between 3.7% and 4.3% (14.7%).