NeraTel's gross profit falls by 21% in 9M

Revenue dropped to $23.6m in the third quarter.

Nera Telecommunications’ (NeraTel) gross profit declined by 21% year-on-year (YoY) to $18.4m in September, whilst its gross profit margin rose by 4.4% to 25.9% due to improved services margins and project adjustments.

The decline in gross profit was associated to the 15.4% drop in revenue, settling at $23.6m in the third quarter due to lower revenues from government, transport, and utility and service provider segments. This was partially offset by growth in the enterprise sector and demand for network security solutions in the banking sector.

The network infrastructure segment saw a 36.4% decline, whilst wireless networks revenue dropped 24.6%, largely due to lower contributions from the Europe, Middle East, and Africa markets.

Order intake, meanwhile, grew 28.3% to $89.2m backed by fresh orders from service provider and enterprise segments, partially offset by government, transport and utilities.

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