“The third quarter led Telrad to where we wanted to go in terms of our business plan” – Capital Market

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Telrad Networks
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Telrad Networks


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Communications equipment company this morning reported an 11% increase in revenue alongside a net profit of $ 2.5 million, although the spread of the corona virus has led to delays and stoppages in some of the projects the company has won. After difficult years since the IPO, the stock has soared about 550% from the low level of early April, but the rate of earnings presented by the company since the beginning of the year still reflects a multiplier of 6 relative to the current market value. “After everything the company has gone through since the IPO, we have built in a strategic company a new turning point designed to march the company towards growth and profitability,” explains Moti Elmaleh, CEO of Telrad in an interview with BizPortal. “We have streamlined and focused sales of the company’s products worldwide, and in addition, demand for the company’s products worldwide has risen as a result of the Corona crisis. Gaining investor confidence. ”

From the beginning of the year it seems that you are in a good period, what is the reason for this?
“In the third quarter of 2019, we announced a turning point in the framework. We made a dramatic reduction in expenses. In addition, the company achieved a dramatic increase in revenue from products that have a high level of gross profitability. “In the world, which increases the demand for the company’s products and the integration of IT systems among companies.”

How does the corona crisis affect the company’s operations?
“The crisis had opposing effects. For example, on the one hand, there was a halt in activity in Chile and Israel. In Chile we are setting up cellular infrastructure and the country has entered long periods of closure, making it difficult for us to set up new sites. “In the United States, in the face of rising demand for Internet use among companies, there has been a positive effect on the company’s activity due to rising demand for its products.”

Still, what was the impact of the Corona crisis on the company’s revenue growth?
“The impact on the company’s operations was overall positive. I estimate about a third of the revenue growth we showed was a result of rising demand in the face of the Corona crisis and rising demand for Internet use and remote work. “.

Have you already completed the turn-around process?
“We finished the process already at the end of the first quarter, but we are reaping the fruits now, as can be seen in the results of the last two quarters.”

You reported a backlog of about $ 179 million, what does that mean in terms of revenue growth in the next quarter and in 2021?
“The nature of our backlog is structured in such a way that it is not really possible to assess how it will develop over time. The backlog is flexible and depends on customer needs.

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