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NeraTel Q4 profit plunges 70%
NET profit for telecom and IT solutions provider Nera Telecommunications plunged 70 per cent for the fourth quarter, as gross profit margin shrank on higher equipment sales and lower writebacks from project closures.
The group's revenue rose 26 per cent to S$49.6 million thanks to better performance in both the telecom and infocomm business divisions.
But as cost of sales outpaced revenue growth, gross profit slipped 5 per cent to S$12.6 million.
An increase in administrative, distribution and selling expenses further eroded the bottom line.
NeraTel recorded net profit of S$1.3 million for the three months ended Dec 31, down from S$4.4 million the same period a year ago.
Its directors have recommended a special cash dividend of 0.5 Singapore cent; the group gave a final dividend of one cent last year.