Tecnotree Group operates in the following geographical areas: Europe & Americas (Europe and North, Central and South America) and MEA & APAC (Middle East and Africa, Asia Pacific).
The business operations in the market area continued to be challenging in 2016. Net sales in the area decreased 28.7% from the previous year to EUR 25.0 (35.0) million.
Net sales decreased primarily in the expansion and upgrade of old solutions deliveries. Net sales of the services business were EUR 16.9 million EUR (17.4) and a decrease of 2.9% compared to the previous year. The number of new orders decreased and was EUR 27.3 million (34.8). The order backlog of the area increased from the previous year and it was EUR 7.4 million (7.0).
During the financial period, Tecnotree reached a settlement of 6.0 million EUR with a Latin American customer on a long-accrued overdue receivable, concerning the delivery of a USD 24 million convergent online charging solution, announced in April 2012. The company created an impairment charge of approx. EUR 9.0 million for the remaining amount.
MEA & APAC
The company was able to win new orders amounting to EUR 31.7 million, an increase from the previous year (29.1).
Net sales decreased 15.2% from the previous year, to EUR 35.1 (41.4) million. The sales for the financial period consisted of the extension and update of the solutions carried out to current customers, the renewal of annual maintenance agreements, as well as the partial implementation of new deals. At the end of 2016, the order book stood at EUR 17.4 million (19.8.).
During the period, Tecnotree signed agreements with two significant new customers. The total value of the contracts was EUR 10.5 million. These new businesses, together with the company’s other long-term customer relationships, offer a solid foundation for business operations in the region.