Companies news of 2018-02-06 (page 1)

 
Luxembourg, February 6th 2018 - Strong Finish to 2017, Accelerating into 2018

LEUDELANGE, Sweden, Feb. 6, 2018 /PRNewswire/ --

  •  Latam organic service revenue growth improved to 3.1%, up 73 bps QoQ
    • Growth led by Bolivia at 9.1%, Paraguay at 8.9% and El Salvador at 5.4%
  •  Latam EBITDA up 9.0% on improved growth and efficiency gains
  •  Equity Free Cash Flow up 39.2% to $356 million in 2017
  •  Accelerated 4G and HFC network buildout and exceeded our full year targets
    • Expanded 4G network to cover 56% of the population and added record 3.5 million 4G customers
    • Added record 1.3 million HFC homes passed and record 253,000 HFC homes connected
  •  Completed sale of operations in Rwanda
  •  Signed sale-leaseback for approximately 800 towers in El Salvador for up to $145 million
  •  Dividend recommended of $2.64 per share

 

 

 

$m (excluding Senegal and Ghana from all periods)

 

Q4 2017

 

Q4 2016

 

% change

 

FY 2017

 

FY 2016

 

 



% change 

 

Revenue

 

1,558

 

1,526

 

2.1%

 

6,024

 

5,979

 

0.8%

 

     Organic growth

 

1.3%

 

-2.6%


 

-0.4%

 

-1.1%


 

Service Revenue

 

1,456

 

1,417

 

2.8%

 

5,659

 

5,591

 

1.2%

 

     Organic growth

 

2.0%

 

-1.5%


 

0.2%

 

0.5%


 

EBITDA

 

561

 

520

 

7.9%

 

2,190

 

2,114

 

3.6%

 

     Organic growth

 

6.9%

 

4.1%


 

2.2%

 

1.8%


 

EBITDA Margin

 

36.0%

 

34.1%

 

190bps

 

36.4%

 

35.4%

 

100bps

 

Capex*

 

384

 

384

 

0.0%

 

993

 

988

 

0.5%

 

OCF (EBITDA ? Capex)

 

177

 

136

 

30.3%

 

1,197

 

1,126

 

6.2%

 

*Excludes spectrum and finance lease capitalizations from tower sale and leaseback transactions

(i)The financial information presented in this earnings release is based on Alternative Performance Measures determined by the way in which the Executive Management (Chief Operating Decision Maker) manage the performance and resource allocation of the Group. It includes Guatemala (55% owned) & Honduras (66.67% owned) as if fully consolidated. With the exception of balance sheet items, the comparative 2016 financial information in this earnings release has been adjusted for the classification of our operations in Senegal and Ghana as discontinued operations. At December 31st, 2017, Senegal is classified as an asset held for sale on our balance sheet. Our operations in Ghana have been merged with Airtel on October 12th, 2017 and are accounted for as a joint venture since that date. IFRS Revenue was $1,069 million in Q4 2017; see page 19 for reconciliation with IFRS numbers.

Millicom Chief Executive Officer Mauricio Ramos commented:

Growth returned to our Latam markets during the second half of 2017, thanks largely to our strategic focus on building digital highways and accelerating the transition from legacy voice and SMS to high-speed data services, both in mobile and fixed.

In Latam, our mobile business is growing again, and it is encouraging to see Q4 growth of more than 3% in Paraguay and Bolivia, countries where the transition from voice to data is more advanced. Meanwhile, the investments we are making in our HFC networks are driving steady mid-to-high single-digit growth in Home and B2B, and we see a large opportunity for Millicom in these areas.

In Africa, we delivered on our commitment to generate positive free cash flow from the region in 2017. We also disposed of our operation in Rwanda, and we completed a merger in Ghana, consistent with our strategy to focus on the Latam region.

Over the last several months, we also monetized tower portfolios in Paraguay, Colombia and El Salvador, and we reduced our stake in BIMA. As a result of these transactions and of our organic cash flow growth, we reduced our leverage and improved our return on capital in 2017.

We enter 2018 with positive momentum in our largest markets and with the financial strength to support our long-term growth plans and create shareholder value. I expect that 2018 will be an even better and more exciting year for Millicom.

Outlook

For our Latam segment, we expect 2018 service revenue growth of 2-4% and EBITDA growth of 3-6% year-on-year in constant currency, and capital expenditures for the region of approximately $1 billion. In our B2C mobile unit, we expect to add 3 million new 4G data customers and to end the year with over 10 million. In our Home business, we anticipate adding 1 million new HFC homes passed to reach 10 million total homes, and we expect to connect an incremental 300,000 HFC homes to our network. For Africa, we expect the region will continue to produce positive equity free cash flow.

2017 dividend

At the Annual General Meeting on May 4th, 2018, the Board will recommend payment of an unchanged ordinary dividend of $2.64 per share to be paid in two equal instalments in May and November 2018.

Subsequent events

On January 31st, 2018, we completed our previously announced agreement to sell our operations in Rwanda. In 2017, our business in Rwanda generated EBITDA of $14 million from revenue of $57 million. In 2016, our business in the country produced EBITDA of $15 million on revenue of $64 million. The business generated negative equity free cash flow in both years.

On February 6th, 2018, we entered into a sale-leaseback agreement with SBA Communications related to a portfolio of approximately 800 towers in El Salvador. As a result of the transaction, Millicom expects to receive cash proceeds of around $145 million.

Conference call details

A presentation and conference call to discuss these results will take place on 7 February 2018 at 2:00 PM (Stockholm) / 1:00 PM (London) / 8:00 AM (New York). Please dial in 5-10 minutes before the scheduled start time to register your attendance. Dial-in numbers for the call are as follows:

Sweden:              +46 (0)8 5065 3942                             UK:                 +44 (0) 330 336 9411
US:                          +1 646 828 8156                             Luxembourg:        +352 2787 0187

The access code is: 6814351

A live audio stream and slides of the analyst presentation can also be accessed at www.millicom.com.

 

Financial calendar

 

Quarterly results

 

Earnings release

 

Conference call 

 

Q1 2018

 

Apr 24

 

Apr 25 

 

Q2 2018

 

Jul 19

 

Jul 20

 

Q3 2018

 

Oct 23

 

Oct 24

 

Apr 12 ? Last day for shareholders to add items to the AGM/EGM agenda
May 4 ? AGM / EGM (Location: Luxembourg)

CONTACT:

For further information, please contact

Press:
Vivian Kobeh, Corporate Communications Director
+1-305-476-7352 / +1-305-302-2858
press@millicom.com

Investors: 
Michel Morin, VP Investor Relations
+352-277-59094
investors@millicom.com

Mauricio Pinzon, Investor Relations Manager
Tel: +44-20-3249-2460
investors@millicom.com

 

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The following files are available for download:

http://mb.cision.com/Main/950/2446635/788143.pdf

Millicom Q4 2017 - Strong finish to 2017, accelerating into 2018

http://mb.cision.com/Public/950/2446635/9f65a992ad065b12.pdf

Millicom Q4 2017 Results Presentation

http://mb.cision.com/Public/950/2446635/b3b56d0badd134ba.xlsx

Financial-and-operational-data-Q417

SOURCE Millicom International Cellular

 

 

Edgewater Wireless Receives Clearance to Trade on OTCQB Venture Market

OTTAWA, Ontario, February 6, 2018 /PRNewswire/ --

Edgewater Wireless Systems Inc. (TSX.V: YFI) (OTCQB: KPIFF), the developer of WiFi3? ultra-wideband, multi-channel WiFi for high-density/high-interference wireless networks is announcing today that the company has received clearance from the Financial Industry Regulatory Authority (FINRA) and is approved for trading on the OTCQB® Venture Market under the ticker symbol "KPIFF". 

"On the heels of announcing our partnership with our OEM partner Kroger, we are expanding our offering and providing better accessibility for investors throughout the United States. Allowing us to aggressively pursue growth in what is a quickly changing and expanding wireless industry," said Andrew Skafel, President & CEO of Edgewater Wireless. "We anticipate our presence on the OTCQB will give us additional exposure to institutional and retail investors who are looking to invest in a company like Edgewater Wireless - developing a highly differentiated solution to solve tomorrow's technology problems today."

Backed by 24 patents, Edgewater's WiFi3? is the best solution for in high-density WiFi applications. Edgewater's patented technology mitigates adjacent and co-channel interference to enable multiple, concurrent channels of transmit and receive from a single WiFi standards-compliant radio. Delivering the highest channel density in the industry means fewer access points to deliver the highest Quality of Service (QoS) for users. For more information on High-Density WiFi solutions and OEM packages, visit: http://www.edgewaterwireless.com or http://www.aera.io/

About Edgewater Wireless Systems Inc. (TSX.V: YFI) (OTCQB: KPIFF):

Edgewater Wireless develops and commercializes leading edge technologies and intellectual property for the communications market. Edgewater Wireless delivers advanced product solutions designed to meet the high-density, high quality of service (QoS) and high-reliability needs of service providers and their customers. Leveraging over twenty-four (24) patents, Edgewater's WiFi3? is redefining WiFi technology with its wide-band, multi-channel radio and high-capacity Access Point solutions, and delivering next generation WiFi, today.

The best solution for High-Density WiFi networks, Edgewater Wireless WiFi3 powered access point products enable innovative service providers to plan, build and deploy reliable, high-capacity services (like VoWiFi) for high-density wireless data demand in any environment.

Do more with less! Fewer access points delivering high quality service at a lower overall deployment cost make our patented WiFi3? technology the right choice for your next WiFi network.

Explore the evolution of Wi-Fi at http://www.EdgewaterWireless.com and http://www.aera.io/

Forward-Looking Statements 

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws.  The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements.  Although Edgewater Wireless believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because Edgewater Wireless can give no assurance that they will prove to be correct.  By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause Edgewater Wireless' actual results and experience to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to access to capital markets, market forces, competition from new and existing companies and regulatory conditions.  Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose.  Edgewater Wireless undertakes no obligation to update publicly or revise any forward looking information, whether as a result of new information, future events or otherwise, except as required by law.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Edgewater Wireless Investor Contact:
Matt Massey
VP, Marketing
T: +1 613-797-9628
E: mattm@edgewaterwireless.com
W: http://www.edgewaterwireless.com

Edgewater Wireless Media Contact
Jennifer Schenberg
T: +1-917-445-4454
E: jennifer@penvine.com

TAL Develops New International Strategy as British Prime Minister Makes Education a Priority During Her Visit to China

BEIJING, Feb. 6, 2018 /PRNewswire/ -- Last week, British Prime Minister Theresa May paid a three-day visit to China. During her visit, Teresa May went to see TAL's education technology products on Febuary 2, accompanied by TAL's President Bai Yunfeng. Products such as Xueersi Online School's Live Broadcast System, Xueersi Online School's Virtual Reality (VR) Classroom, Snowland Reading, and ABCtime Live all gained praise from the Prime Minister and her accompanying staff.

Teresa May Interacting with TAL Educational Technology Products

According to Theresa May, China being Britain's important economic partner will be establishing new joint relations with Britain in the education field. This will not only become an important cornerstone for establishing educational cooperation between the two countries, but will also bring about new opportunities to Chinese educational companies to develop new international strategies for a better future.

Bai Yunfeng explained, "Xueersi Online School is an online education platform, which provides education for over six million students across China and enables them to have real-time communication via its live broadcast system."

Currently, Xueersi Online School has begun integrating AI technologies into their live broadcasts. For example, students' pronunciation can be assessed real time in Chinese and English teaching, which was well received by the audience in attendance.

On the same day, British Secretary of State for International Trade and President of the Board of Trade Liam Fox was present for TAL's Xueersi English and the Oxford University Press' signing ceremony in Shanghai. Togther, the two parties will establish Xueersi English Overseas Research Institute in Britain, further developing TAL's cooperation with the UK's education sector. Specifically, it will help support R&D in China to better guarantee sustainable development and growth.

In recent years, TAL has been seeking to expand its cooperation aboard with leading educational technology companies, elevating its international strategic plans. The Chinese education company has collaborated with some of the leading international academic institutions in the world, such as ETS and world-renowned publisher Dorling Kindersley. TAL's content and products have also been introduced in reputable publications, including Reading A-Z, as well as National Geographic. A continual push for an internationalized education system has strengthened its core offerings, providing children in China with more systemized learning resources.

In the future, TAL will continue developing international education programs to accomplish its mission of "advancing education through science and technology", and help more Chinese students with going global.

Photo - https://mma.prnewswire.com/media/638658/TAL_Educational_Technology_Products.jpg

 

The Field Offering 65% Subscribed on Fineqia Investment Platform

LONDON, February 6, 2018 /PRNewswire/ --

All $ are US$.

Fineqia International Inc., (the "Company" or "Fineqia") (CSE: FNQ) (OTCPink: FNQQF) (Frankfurt: FNQA) is pleased to announce that 65% of the minimum offering of The Field available on the platform of its U.K. subsidiary Fineqia Ltd, has been subscribed.

The Field, an action-drama and independent picture set in New Delhi, India, had raised approx. US$2.3 million and tapped into the Fineqia platform to complete its financing round to help take the movie to completion. Shooting of the film has already been completed with 36 days of filming in Los Angeles, New Delhi and Mumbai. Post-production work remains to take the film to completion.

Starring Hollywood actor Brendan Fraser, Indian film stars Abhay Deol, Ronit Roy, Prem Chopra and French actress Charlotte Poutrel, The Field centers on a mafia family at war with one another and an undercover officer who assists in their downfall. With its dark criminal undertones, the movie can be likened to cult gangster movie classics in both Western and Indian cinema.

"We couldn't be happier that people are discovering the project and believe in it as passionately as we do," said The Field's Director, Rohit Batra. "We look forward to finishing the film and engaging with audiences across the globe."

The minimum amount to be raised on the Fineqia platform was US$100,000 for 1.6 units of equity in The Field LLC, a California limited company. At this point, US$65,000 has been raised via the Fineqia platform, equivalent to 1.04 units of equity, for which Fineqia Ltd receives a placement fee. The minimum investment amount is GBP1,000 or US$1,400 at prevailing exchange rates.

Eligible investors can find further details of the offering on the Fineqia platform at http://www.fineqia.com.

About Fineqia Limited 

Fineqia provides a platform and associated services to support security issuances and manage administration of equity and debt securities. It acts as a broker bringing an issuing company's securities to market, distributing and marketing them as well as transparently highlighting the risks and objectively outlining opportunities involved. It recently announced the incorporation of blockchain technologies to achieve these objectives. For more information visit http://www.fineqia.com

Residents of Canadian jurisdictions are not able to subscribe for equity or debt securities on the Fineqia platform unless and until Fineqia has become registered in the Canadian jurisdiction as a dealer under applicable securities laws. Investors resident in other jurisdictions outside of the European Union may also be restricted from participating in offerings on the Fineqia platform. We will allow for participation of investors resident outside of the European Union when Fineqia has received the requisite regulatory approvals. 

RISK WARNING 

Investing in start-ups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Fineqia Ltd is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. You will only be able to invest via Fineqia Ltd once you are registered as sufficiently sophisticated. This page is communicated by Fineqia Ltd and has been approved as a financial promotion by Kession Capital Ltd. Fineqia Ltd, is an appointed representative of Kession Capital Ltd who are authorised and regulated by the Financial Conduct Authority. Investment are not offers of guaranteed returns and investments can only be made by members via Fineqia Ltd on the basis of information provided in the pitches by the companies concerned. Fineqia Ltd takes no responsibility for this information or for any recommendations or opinions made by the companies. Your capital is at risk.

FORWARD-LOOKING STATEMENTS 

Some statements in this release may contain forward-looking information (as defined under applicable Canadian securities laws) ("forward-looking statements"). All statements, other than of historical fact, that address activities, events or developments that Fineqia (the "Company") believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding potential acquisitions and financings) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words "may", "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, the failure to obtain sufficient financing, and other risks disclosed in the Company's public disclosure record on file with the relevant securities regulatory authorities. Any forward-looking statement speaks only as of the date on which it is made except as may be required by applicable securities laws. The Company disclaims any intent or obligation to update any forward-looking statement except to the extent required by applicable securities laws.

Fineqia Limited (FRN: 757772) is an appointed representative of Kession Capital Limited (FRN: 582160), which is authorised and regulated by the Financial Conduct Authority in the UK.

Bundeep Singh Rangar, Chief Executive Officer, T: +44(0)203-500-3462, E: info@fineqia.com , W: http://www.fineqia.com  

Solteq Plc: Changes in Solteq Plc's Executive Team

HELSINKI, Feb. 6, 2018 /PRNewswire/ -- Antti Kärkkäinen, CFO of Solteq Plc. has announced his resignation by April 30th, 2018 due to personal reasons. Company has started searcing process of a new CFO as of today. Parties have  agreed that Kärkkäinen will be available for separately determined tasks after April 30th  if needed.

Solteq Plc
Olli Väätäinen
CEO

Further Information

Olli Väätäinen,
CEO,
Tel. +358-50-557-8111
olli.vaatainen@solteq.com

DISTRIBUTION
NASDAQ OMX Helsinki
Key Media

www.solteq.com

Solteq in Brief

Solteq is a Nordic industry independent IT and software house that specialises in business solutions. We offer total solutions for both business enhancement by means of digitalisation and for omnicommerce: from back end processes all the way to the customer's purchasing experience and from supply chain management to digital marketing. Our more than 500 experts, who work in five countries, develop and implement solutions for clients in Europe, North America, Asia and Australia. In 2016, Solteq's net sales amounted to 63 million euro.

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Hisense was identified in "BrandZ Top 10 Chinese Global Brand Builders"

BEIJING, Feb. 6, 2018 /PRNewswire/ -- BrandZ Top 50 Chinese Global Brand Builders report was released today by WPP, in collaboration with Google. The report identifies and ranks 50 Chinese brands across nine categories based on their strength outside of China, and provides insights and recommendations for global brand building. Hisense ranked number 9th and won the "fastest growing electronics and home appliance brand" title. The report takes an in-depth look at the Chinese brands that are making an impact with consumers in international markets and provides a rich seam of thought-provoking insights on how Chinese companies can successfully build their brands on a global scale. This is the second time that WPP has collaborated with Google to launch the Brand Ranking, a survey that combines data from 7 countries and more than 395,000 consumers. BrandZ? is the world's largest brand equity database, covering 53 countries, 120,000 brands and is the most authoritative brand valuation methodology worldwide.

Being one of "BrandZ Top 10 Chinese Global Brand Builders" is a result of Hisense's brand power and its global strategy. Up to now, Hisense owns 18 overseas companies in Europe, America, Africa, the Middle East, Australia and Southeast Asia. It has 3 overseas production bases to ensure its own supply chain and has 12 R&D institutions worldwide. In the "China National Image Global Survey" released by China International Publishing Group, Hisense was one of the "Top Ten most familiar Chinese brands to overseas citizens" for two consecutive years. The growth is in part due to the rapid pace at which China's electronics and home appliance business are pursuing global expansion, also a result of Hisense's stickiness to build its own brand awareness and persistence in global market.

Hisense Group's total sales revenue increased 10.7% in 2017 and overseas revenue increased 21.3%. The brand sales revenue of Hisense International increased 19.6% compared to last year. In the meantime, based on the customs statistics, Hisense's export sales of air conditioners and TVs increased by 28.3% and 34.4% separately. With the absence of significant changes in international demand, Hisense still maintained a rapid growth, which is a result of the brand effect.

The Belt and Road Initiative has been more than 3 years. Hisense's high-end products have played a key role in the overseas development of Hisense. The self-developed ULED technology, overseas operation system, excellent product performance and outstanding local supply chain have guaranteed Hisense to give effective and timely feedback to the market. 2018 FIFA World Cup? is approaching. Hisense will move forward to not only build global brand but to build an innovative global brand with higher value, to drive the growth and global strategy with sports marketing. Hisense is at the forefront of electronics and home appliance industry, and its pursuit of new technology will fuel business growth and power its global brand awareness at an incredible pace.

 

ZTE Releases the World's First 5G E2E Network Slicing Solution

Leading the New Mode of Slice Operation

SHENZHEN, China, Feb. 6, 2018 /PRNewswire/ -- ZTE Corporation (0763.HK / 000063.SZ), a major international provider of telecommunications, enterprise and consumer technology solutions for the Mobile Internet, today released the world's first 5G E2E network slicing solution.

The release will push forward the technical maturity of the 5G commercial system to a new level, lay a solid foundation for the new mode of 5G slice-based network operation, build up the capability of NSaaS (Network Slice as a Service), and continuously lead the 5G application innovation for the vertical industry. 

As a key enabling technology and infrastructure, 5G's scope of services has been extended from purely mobile communications to ubiquitous connections and various scenario applications. The 5G network should support the scenarios with different SLAs. Different business models can co-exist on a unified 5G network architecture.

The 5G E2E network slicing solution is the key to the 5G network supporting industry digital transformation. It allows the resource of a physical network to be flexibly allocated into multiple virtualized network slices in order to adapt to the needs of different industrial services, such as industrial control, automatic driving, intelligent power grid and remote medical treatment.

With the key characteristics of "Agility, Intelligence and Openness", ZTE's solution is an end-to-end all cloud-based network slicing solution across 5G RAN, core network and bearer network. The solution is based on an industry-leading micro-service architecture and realizes the convergence of the unified air interface, the virtualized core network and the SDN-based bearer network.

The ZTE 5G E2E network slicing solution also supports the life-cycle management of end-to-end network slices through its intelligent operation and orchestration system. Oriented to service needs, it can also support the on-demand customization of network slices and the real-time provisioning. The solution also incorporates a policy engine empowered by AI to continuously improve the intelligent operation and service assurance capabilities of the 5G network.  

"As a global pioneer in 5G, ZTE has continuously innovated in the 5G area. The release of the 5G E2E network slicing solution is a key milestone towards the 5G commercialization. It not only provides an industrial leading implementation method of network slice, but also turns the network slice into an operational and valuable product for the vertical industry, inaugurating a new mode of the 5G network slice operation," said You Yan, Vice President at ZTE. "ZTE vigorously attempts to promote the cross-border integration of the 5G and the vertical industry, stimulates massive application innovations, realizes a perfect combination of 5G's social and commercial values and builds up a digital economy ecosystem."

About ZTE

ZTE is a provider of advanced telecommunications systems, mobile devices, and enterprise technology solutions to consumers, carriers, companies and public sector customers. As part of ZTE's strategy, the company is committed to providing customers with integrated end-to-end innovations to deliver excellence and value as the telecommunications and information technology sectors converge. Listed in the stock exchanges of Hong Kong and Shenzhen (H share stock code: 0763.HK / A share stock code: 000063.SZ), ZTE's products and services are sold to over 500 operators in more than 160 countries. ZTE commits 10 per cent of its annual revenue to research and development and has leadership roles in international standard-setting organizations. ZTE is committed to corporate social responsibility and is a member of the UN Global Compact. For more information, please visit www.zte.com.cn.

Media Contacts:

Margaret Ma
ZTE Corporation
Tel: +86-755-2677-5189
Email: ma.gaili@zte.com.cn  

 

TransDigm Group Reports Fiscal 2018 First Quarter Results

CLEVELAND, Feb. 6, 2018 /PRNewswire/ -- TransDigm Group Incorporated (NYSE: TDG), a leading global designer, producer and supplier of highly engineered aircraft components, today reported results for the first quarter ended December 30, 2017.

Highlights for the first quarter include:

  • Net sales of $848.0 million, up 4.2% from $814.0 million;
  • Net income from continuing operations of $312.0 million, up 162.5% from $118.9 million;
  • Earnings per share from continuing operations of $4.60, up 1,022.0% from $0.41;
  • EBITDA As Defined of $401.5 million, up 5.3% from $381.2 million;
  • Adjusted earnings per share of $5.58, up 121.4% from $2.52, this includes $2.96 per share of favorable impact from tax reform; and
  • Upward revision to fiscal 2018 net income and earnings per share guidance.

Net sales for the quarter rose 4.2%, or $33.9 million, to $848.0 million from $814.0 million in the comparable quarter a year ago.

Net income from continuing operations for the quarter rose 162.5% to $312.0 million, or $4.60 per share, compared to $118.9 million, or $0.41 per share, in the comparable quarter a year ago. The current quarter included a provisional net tax benefit of $147.1 million to record the estimated impact of the U.S. Tax Cuts and Jobs Act (tax reform), primarily including a $23.1 million charge for the U.S. tax on deemed repatriated earnings of non-U.S. subsidiaries, more than offset by the $170.2 benefit for the remeasurement of our net U.S. deferred tax balance. The effective tax rate for the 2018 first quarter was a benefit of 63.4% compared to a provision of 14.4% for the 2017 first quarter.  The balance of the increase in net income primarily reflects the increase in net sales described above, lower refinancing costs, lower acquisition related costs and improvements to our operating margin resulting from the strength of our proprietary products and continued productivity efforts. This growth in net income was partially offset by higher interest expense.

Earnings per share were reduced in both 2018 and 2017 by $1.01 per share and $1.70 per share, respectively, representing dividend equivalent payments made during each quarter.

Net income from discontinued operations in the quarter was $2.8 million, or $0.05 earnings per share.

Adjusted net income for the quarter rose 117.3% to $310.1 million, or $5.58 per share, from $142.7 million, or $2.52 per share, in the comparable quarter a year ago.  Adjusted earnings per share in the current quarter included $2.96 of favorable impact from the enactment of tax reform. Excluding this favorable tax impact, current earnings per share of $2.62 increased 4.0% over the prior year.

EBITDA for the quarter increased 18.4% to $382.5 million from $323.0 million for the comparable quarter a year ago.  EBITDA As Defined for the period, which excludes $1.7 million from discontinued operations, increased 5.3% to $401.5 million compared with $381.2 million in the comparable quarter a year ago.  EBITDA As Defined as a percentage of net sales for the quarter was 47.4%.

"We are pleased with our first quarter results.  Our focused value driven operating strategy continues to generate real intrinsic shareholder value. The commercial aftermarket revenues were particularly encouraging with our commercial transport aftermarket revenues up low double-digit percent, offset slightly by lower growth in the business jet and helicopter aftermarket. As we said in the beginning of the year, we do not intend to change our guidance as long as we think the ranges are still reasonably representative," stated W. Nicholas Howley, TransDigm Group's Chairman and Chief Executive Officer.

Subsequent to the fiscal quarter end, on January 26, 2018, TransDigm completed the sale of Schroth in a management buyout to a private equity fund and certain members of Schroth management for approximately $61 million.

Please see the attached tables for a reconciliation of net income to EBITDA, EBITDA As Defined, and adjusted net income; a reconciliation of net cash provided by operating activities to EBITDA and EBITDA As Defined, and a reconciliation of earnings per share to adjusted earnings per share for the periods discussed in this press release.

Fiscal 2018 Outlook

Mr. Howley continued, "We are leaving our revenue and EBITDA guidance unchanged at this time until we see how the year is proceeding. We have significantly increased our net income and earnings per share guidance to reflect the impact of tax reform."  Assuming no acquisitions and based upon current market conditions, TransDigm expects fiscal 2018 financial guidance to be as follows:

  • Net sales are anticipated to be in the range of $3,645 million to $3,725 million compared with $3,504 million in fiscal 2017;
  • Net income from continuing operations is anticipated to be in the range of $906 million to $942 million compared with $629 million in fiscal 2017;
  • Earnings per share from continuing operations are expected to be in the range of $15.29 to $15.93 per share based upon weighted average shares outstanding of 55.6 compared with $8.45 per share in fiscal 2017;
  • EBITDA As Defined is anticipated to be in the range of $1,805 million to $1,855 million compared with $1,711 million in fiscal 2017; and
  • Adjusted earnings per share are expected to be in the range of $16.95 to $17.59 per share compared with $12.38 per share in fiscal 2017.

Please see the attached table 6 for a reconciliation of EBITDA, EBITDA As Defined to net income and reported earnings per share to adjusted earnings per share guidance mid-point estimated for the fiscal year ending September 30, 2018. Additionally, please see the attached table 7 for comparison of the current fiscal year 2018 guidance versus the previously issued fiscal year 2018 guidance.

Earnings Conference Call

TransDigm Group will host a conference call for investors and security analysts on February 6, 2018, beginning at 11:00 a.m., Eastern Time. To join the call, dial (888) 558-9538 and enter the pass code 8749137.  International callers should dial (760) 666-3183 and use the same pass code. A live audio webcast can be accessed online at http://www.transdigm.com. A slide presentation will also be available for reference during the conference call; go to the investor relations page of our website and click on "Presentations."

The call will be archived on the website and available for replay at approximately 2:00 p.m., Eastern Time. A telephone replay will be available for two weeks by dialing (855) 859-2056 and entering the pass code 8749137.  International callers should dial (404) 537-3406 and use the same pass code.

About TransDigm Group

TransDigm Group, through its wholly-owned subsidiaries, is a leading global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, NiCad batteries and chargers, engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, databus and power controls, cockpit security components and systems, specialized cockpit displays, aircraft audio systems, specialized lavatory components, seatbelts and safety restraints, engineered interior surfaces and related components, lighting and control technology, military personnel parachutes, high performance hoists, winches and lifting devices, and cargo loading, handling and delivery systems.

Non-GAAP Supplemental Information

EBITDA, EBITDA As Defined, EBITDA As Defined Margin, adjusted net income and adjusted earnings per share are non-GAAP financial measures presented in this press release as supplemental disclosures to net income and reported results. TransDigm Group defines EBITDA as earnings before interest, taxes, depreciation and amortization and defines EBITDA As Defined as EBITDA plus certain non-operating items, refinancing costs, acquisition-related costs, transaction-related costs and non-cash charges incurred in connection with certain employee benefit plans. TransDigm Group defines adjusted net income as net income plus purchase accounting backlog amortization expense, effects from the sale on businesses, refinancing costs, acquisition-related costs, transaction-related costs and non-cash charges incurred in connection with certain employee benefit plans. EBITDA As Defined Margin represents EBITDA As Defined as a percentage of net sales. TransDigm Group defines adjusted diluted earnings per share as adjusted net income divided by the total shares for basic and diluted earnings per share. For more information regarding the computation of EBITDA, EBITDA As Defined and adjusted net income and adjusted earnings per share, please see the attached financial tables.

TransDigm Group presents these non-GAAP financial measures because it believes that they are useful indicators of its operating performance. TransDigm Group believes that EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties to measure operating performance among companies with different capital structures, effective tax rates and tax attributes, capitalized asset values and employee compensation structures, all of which can vary substantially from company to company. In addition, analysts, rating agencies and others use EBITDA to evaluate a company's ability to incur and service debt. EBITDA As Defined is used to measure TransDigm Inc.'s compliance with the financial covenant contained in its credit facility. TransDigm Group's management also uses EBITDA As Defined to review and assess its operating performance, to prepare its annual budget and financial projections and to review and evaluate its management team in connection with employee incentive programs. Moreover, TransDigm Group's management uses EBITDA As Defined to evaluate acquisitions and as a liquidity measure. In addition, TransDigm Group's management uses adjusted net income as a measure of comparable operating performance between time periods and among companies as it is reflective of changes in pricing decisions, cost controls and other factors that affect operating performance.

None of EBITDA, EBITDA As Defined, EBITDA As Defined Margin, adjusted net income or adjusted earnings per share is a measurement of financial performance under GAAP and such financial measures should not be considered as an alternative to net income, operating income, earnings per share, cash flows from operating activities or other measures of performance determined in accordance with GAAP. In addition, TransDigm Group's calculation of these non-GAAP financial measures may not be comparable to the calculation of similarly titled measures reported by other companies.

Although we use EBITDA and EBITDA As Defined as measures to assess the performance of our business and for the other purposes set forth above, the use of these non-GAAP financial measures as analytical tools has limitations, and you should not consider any of them in isolation, or as a substitute for analysis of our results of operations as reported in accordance with GAAP. Some of these limitations are:

  • neither EBITDA nor EBITDA As Defined reflects the significant interest expense, or the cash requirements necessary to service interest payments, on our indebtedness;
  • although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and neither EBITDA nor EBITDA As Defined reflects any cash requirements for such replacements;
  • the omission of the substantial amortization expense associated with our intangible assets further limits the usefulness of EBITDA and EBITDA As Defined;
  • neither EBITDA nor EBITDA As Defined includes the payment of taxes, which is a necessary element of our operations; and
  • EBITDA As Defined excludes the cash expense we have incurred to integrate acquired businesses into our operations, which is a necessary element of certain of our acquisitions.

Forward-Looking Statements

Statements in this press release that are not historical facts, including statements under the heading "Fiscal 2018 Outlook," are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.Words such as "believe," "may," "will," "should," "expect," "intend," "plan," "predict," "anticipate," "estimate," or "continue" and other words and terms of similar meaning may identify forward-looking statements.

All forward-looking statements involve risks and uncertainties which could affect TransDigm Group's actual results and could cause its actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, TransDigm Group. These risks and uncertainties include but are not limited to: the sensitivity of our business to the number of flight hours that our customers' planes spend aloft and our customers' profitability, both of which are affected by general economic conditions; future geopolitical or worldwide events; cyber-security threats and natural disasters; our reliance on certain customers; the U.S. defense budget and risks associated with being a government supplier; failure to maintain government or industry approvals; failure to complete or successfully integrate acquisitions; our substantial indebtedness; potential environmental liabilities; increases in raw material costs, taxes and labor costs that cannot be recovered in product pricing; risks and costs associated with our international sales and operations; and other risk factors. Further information regarding the important factors that could cause actual results to differ materially from projected results can be found in TransDigm Group's Annual Report on Form 10-K and other reports that TransDigm Group or its subsidiaries have filed with the Securities and Exchange Commission. Except as required by law, TransDigm Group undertakes no obligation to revise or update the forward-looking statements contained in this press release.

Contact:


Liza Sabol



Investor Relations



216-706-2945



ir@transdigm.com

 

TRANSDIGM GROUP INCORPORATED




CONDENSED CONSOLIDATED STATEMENTS OF INCOME




FOR THE THIRTEEN WEEK PERIODS ENDED


Table
1

DECEMBER 30, 2017 AND DECEMBER 31, 2016


(Amounts in thousands, except per share amounts)



(Unaudited)







Thirteen Week Periods Ended



December
30, 2017


December
31, 2016

NET SALES


$

847,960



$

814,018


COST OF SALES


371,310



369,763


GROSS PROFIT


476,650



444,255


SELLING AND ADMINISTRATIVE EXPENSES


106,528



101,715


AMORTIZATION OF INTANGIBLE ASSETS


17,112



25,531


INCOME FROM OPERATIONS


353,010



317,009


INTEREST EXPENSE - NET


160,933



146,004


REFINANCING COSTS


1,113



32,084


INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES


190,964



138,921


INCOME TAX PROVISION


(121,047)



20,050


INCOME FROM CONTINUING OPERATIONS


$

312,011



$

118,871


INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX


2,764



?


NET INCOME


$

314,775



$

118,871


NET INCOME APPLICABLE TO COMMON STOCK


$

258,627



$

22,900


Net earnings per share:





Net earnings per share from continuing operations--basic and diluted


$

4.60



$

0.41


Net earnings per share from discontinued operations--basic and diluted


0.05



?


Net earnings per share


$

4.65



$

0.41


Cash dividends paid per common share


$

?



$

24.00


Weighted-average shares outstanding:





Basic and diluted


55,600



56,524


 

 

TRANSDIGM GROUP INCORPORATED




SUPPLEMENTAL INFORMATION - RECONCILIATION OF EBITDA,



EBITDA AS DEFINED TO NET INCOME




FOR THE THIRTEEN WEEK PERIODS ENDED


Table
2

DECEMBER 30, 2017 AND DECEMBER 31, 2016


(Amounts in thousands, except per share amounts)



(Unaudited)







Thirteen Week Periods Ended



December
30, 2017


December
31, 2016

Net income


$

314,775



$

118,871


Less: Income from Discontinued Operations, net of tax (1)


2,764



?


Income from Continuing Operations


312,011



118,871


Adjustments:





  Depreciation and amortization expense


30,639



38,048


  Interest expense, net


160,933



146,004


  Income tax provision


(121,047)



20,050


EBITDA


382,536



322,973


Adjustments:





  Acquisition-related expenses and adjustments (2)


2,074



18,568


  Non-cash stock compensation expense (3)


11,113



10,020


  Refinancing costs (4)


1,113



32,084


  Other, net (5)


4,697



(2,450)


Gross Adjustments to EBITDA


18,997



58,222


EBITDA As Defined


$

401,533



$

381,195


EBITDA As Defined, Margin (6)


47.4

%


46.8

%



(1) During the fourth quarter of 2017, the Company committed to disposing of Schroth in connection with the settlement of a Department of Justice investigation into the competitive effects of the acquisition.  Therefore, Schroth was classified as held-for-sale and as discontinued operations beginning September 30, 2017. The Company acquired Schroth in February 2017. On January 26, 2018, the Company completed the sale of Schroth in a management buyout to a private equity fund and certain members of Schroth management for approximately $61 million in cash. Income this quarter was a result of income from operations and a benefit from the deferred tax remeasurement in connection with tax reform.


(2) Represents accounting adjustments to inventory associated with acquisitions of businesses and product lines that were charged to cost of sales when the inventory was sold: costs incurred to integrate acquired businesses and product lines into TD Group's operations, facility relocation costs and other acquisition-related costs; transaction-related costs comprising deal fees; legal, financial and tax due diligence expenses; and valuation costs that are required to be expensed as incurred.


(3) Represents the compensation expense recognized by TD Group under our stock incentive plans.


(4) Represents costs expensed related to debt financing activities, including new issuances, extinguishments, refinancings and amendments to existing agreements.


(5) Primarily represents foreign currency transaction gain or loss, payroll withholding taxes related to dividend equivalent payments and gain or loss on sale of fixed assets.


(6) The EBITDA As Defined margin represents the amount of EBITDA As Defined as a percentage of sales.

 

 

TRANSDIGM GROUP INCORPORATED




SUPPLEMENTAL INFORMATION - RECONCILIATION OF




REPORTED EARNINGS PER SHARE TO




ADJUSTED EARNINGS PER SHARE




FOR THE THIRTEEN WEEK PERIODS ENDED


Table
3

DECEMBER 30, 2017 AND DECEMBER 31, 2016


(Amounts in thousands, except per share amounts)



(Unaudited)







Thirteen Week Periods Ended



December
30, 2017


December
31, 2016

Reported Earnings Per Share





Net income from continuing operations


$

312,011



$

118,871


Less: dividends on participating securities


(56,148)



(95,971)




$

255,863



$

22,900


Net income from discontinued operations


2,764



?


Net income applicable to common stock - basic and diluted


$

258,627



$

22,900


Weighted-average shares outstanding under the two-class method





Weighted-average common shares outstanding


52,024



53,365


Vested options deemed participating securities


3,576



3,159


Total shares for basic and diluted earnings per share


55,600



56,524


Net earnings per share from continuing operations--basic and diluted


$

4.60



$

0.41


Net earnings per share from discontinued operations--basic and diluted


0.05



?


Basic and diluted earnings per share


$

4.65



$

0.41


Adjusted Earnings Per Share



Net income from continuing operations


$

312,011



$

118,871


Gross adjustments to EBITDA


18,997



58,222


Purchase accounting backlog amortization


409



9,147


Tax adjustment


(21,332)



(43,570)


Adjusted net income


$

310,085



$

142,670


Adjusted diluted earnings per share under the two-class method


$

5.58



$

2.52


Diluted Earnings Per Share to Adjusted Earnings Per Share



Diluted earnings per share from continuing operations


$

4.60



$

0.41


Adjustments to diluted earnings per share:





   Inclusion of the dividend equivalent payments


1.01



1.70


   Non-cash stock compensation expense


0.29



0.12


   Acquisition-related expenses


0.07



0.34


   Refinancing costs


0.03



0.39


   Reduction in income tax provision net income per common share related to ASU 2016-09


(0.55)



(0.41)


   Other, net


0.13



(0.03)


   Adjusted earnings per share


$5.58



$2.52


Less: Estimated impact of tax reform


(2.96)



?


Adjusted earnings per share excluding tax reform


$

2.62



$

2.52


 

 

TRANSDIGM GROUP INCORPORATED





SUPPLEMENTAL INFORMATION - RECONCILIATION OF NET CASH


Table 4

PROVIDED BY OPERATING ACTIVITIES TO EBITDA,


EBITDA AS DEFINED


FOR THE THIRTEEN WEEK PERIODS ENDED


DECEMBER 30, 2017 AND DECEMBER 31, 2016




(Amounts in thousands)





(Unaudited)







Thirteen Week Periods Ended



December 30, 2017


December 31, 2016

Net cash provided by operating activities


$

292,811



$

225,791


Adjustments:





Changes in assets and liabilities, net of effects from acquisitions of businesses


(101,926)



(22,641)


Interest expense - net (1)


155,614



141,384


Income tax provision - current


49,090



20,543


Non-cash stock compensation expense (2)


(11,113)



(10,020)


Refinancing costs (4)


(1,113)



(32,084)


EBITDA from discontinued operations (6)


(827)



?


EBITDA


382,536



322,973


Adjustments:





Acquisition-related expenses (3)


2,074



18,568


Non-cash stock compensation expense (2)


11,113



10,020


Refinancing costs (4)


1,113



32,084


Other, net (5)


4,697



(2,450)


EBITDA As Defined


$

401,533



$

381,195




(1) Represents interest expense excluding the amortization of debt issue costs and premium and discount on debt.


(2) Represents the compensation expense recognized by TD Group under our stock incentive plans.


(3) Represents accounting adjustments to inventory associated with acquisitions of businesses and product lines that were charged to cost of sales when the inventory was sold; costs incurred to integrate acquired businesses and product lines into TD Group's operations, facility relocation costs and other acquisition-related costs; transaction-related costs comprising deal fees; legal, financial and tax due diligence expenses and valuation costs that are required to be expensed as incurred.


(4) Represents costs expensed related to debt financing activities, including new issuances, extinguishments, refinancings and amendments to existing agreements.


(5) Primarily represents foreign currency transaction gain or loss, payroll withholding taxes related to dividend equivalent payments and gain or loss on sale of fixed assets.


(6) During the fourth quarter of 2017, the Company committed to disposing of Schroth in connection with the settlement of a Department of Justice investigation into the competitive effects of the acquisition.  Therefore, Schroth was classified as held-for-sale and as discontinued operations beginning September 30, 2017. The Company acquired Schroth in February 2017. On January 26, 2018, the Company completed the sale of Schroth in a management buyout to a private equity fund and certain members of Schroth management for approximately $61 million in cash. Income this quarter was a result of income from operations and a benefit from the deferred tax remeasurement in connection with tax reform.

 

 

TRANSDIGM GROUP INCORPORATED




SUPPLEMENTAL INFORMATION - BALANCE SHEET DATA


Table 5

(Amounts in thousands)




(Unaudited)







December 30, 2017


September 30, 2017

Cash and cash equivalents


857,862



650,561


Trade accounts receivable - net


556,743



636,127


Inventories - net


743,868



730,681


Current portion of long-term debt, net of debt issuance costs and OID


69,214



69,454


Short-term borrowings-trade receivable securitization facility, net of debt issuance costs


299,710



299,587


Accounts payable


145,045



148,761


Accrued current liabilities


296,013



335,888


Long-term debt, net of debt issuance costs and OID


11,378,320



11,393,620


Total stockholders' deficit


(2,599,713)



(2,951,204)


 

TRANSDIGM GROUP INCORPORATED



SUPPLEMENTAL INFORMATION - RECONCILIATION OF EBITDA,



EBITDA AS DEFINED TO NET INCOME AND REPORTED EARNINGS



PER SHARE TO ADJUSTED EARNINGS PER SHARE GUIDANCE MID-POINT

Table 6


FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2018


(Amounts in millions, except per share amounts)


(Unaudited)






Year Ended




September 30,




2018 (guidance




mid-point)


Net income


$

924



Adjustments:




Depreciation and amortization expense


130



Interest expense - net


650



Income tax provision


63



EBITDA


1,767



Adjustments:




Acquisition-related expenses and adjustments (1) and other, net (1)


15



Non-cash stock compensation expense (1)


48



Refinancing costs (1)


?



Gross Adjustments to EBITDA


63



EBITDA As Defined


$

1,830



EBITDA As Defined, Margin (1)


49.7

%






Earnings per share


$

15.61



Adjustments to earnings per share:




Inclusion of the dividend equivalent payments


1.01



Non-cash stock compensation expense


0.78



Acquisition-related expenses and adjustments and other, net


0.26



Refinancing costs


0.02



Reduction in income tax provision net income per common share related to ASU 2016-09


(0.41)



Adjusted earnings per share


$

17.27







Weighted-average shares outstanding


55.6











(1) Refer to Table 2 above for definitions of Non-GAAP measurement adjustments.



 

 

 

TRANSDIGM GROUP INCORPORATED



SUPPLEMENTAL INFORMATION



CURRENT FISCAL YEAR 2018 GUIDANCE VERSUS PRIOR FISCAL YEAR
2018 GUIDANCE

Table 7


(Amounts in millions, except per share amounts)



(Unaudited)








Current


Prior





Fiscal Year 2018


Fiscal Year 2018





Guidance


Guidance


Change at



Issued February 6,
2018


Issued November 9,
2017


Mid-Point


Sales

$3,645 to $3,725


$3,645 to $3,725


?









GAAP Net Income from Continuing Operations

$906 to $942


$702 to $738


$204









GAAP Earnings Per Share from Continuing Operations

$15.29 to $15.93


$11.61 to $12.25


$3.68









EBITDA As Defined

$1,805 to $1,855


$1,805 to $1,855


?









Adjusted Earnings Per Share

$16.95 to $17.59


$12.78 to $13.42


$4.17









Weighted-Average Shares Outstanding

55.6


55.6


?


 

Singapore Takes Next Step Towards Implementing World's First Space-based VHF Communications

STOCKHOLM, Feb. 6. 2018 /PRNewswire/ -- GomSpace A/S ("GomSpace") a subsidiary of GomSpace Group AB (publ) (the "Company") together with The Civil Aviation Authority of Singapore (CAAS) and Singapore Technologies Electronics Limited (ST Electronics) signed a research collaboration agreement on the sidelines of the Singapore Airshow this week, to conduct a design study on the implementation of space-based Very High Frequency (VHF) communications for air traffic management (ATM) in the Singapore Flight Information Region (FIR). This agreement follows the signing of a Memorandum of Understanding (MOU) by the three parties in July 2017 to explore the application and deployment of the space-based system.

The space-based VHF communications system involves the mounting of VHF communications equipment onto a constellation of small low-earth-orbit satellites to enable clear and real-time communications between air traffic controllers and pilots over oceanic airspace.[1] This technology will improve safety and facilitate the safe reduction in separation between aircraft, from the current 80 nautical miles (NM) to potentially 5NM, in airspace where ground-based VHF communications is currently not available, increasing ATM capacity and enabling more efficient use of airspace.

The implementation of space-based VHF communications in the Singapore FIR will entail a design study phase, a proof of concept phase, and finally an operationalisation phase. With the collective expertise[2] of CAAS, ST Electronics and GomSpace, the design study is expected to deliver solutions to overcome implementation challenges identified during the preliminary analyses, by defining baseline requirements, developing conceptual designs and conducting simulations.

"We are constantly planning ahead of the curve, driving innovation and investing in cutting-edge technologies to improve air traffic management in the Singapore FIR and the region. We are encouraged by this next milestone towards implementing space-based VHF communications for ATM, which will be a world-first, and pave the way for more ground-breaking solutions to safely support the growing air traffic in the region," said Mr. Soh Poh Theen, Deputy Director-General (Air Navigation Services), CAAS.

"This agreement will leverage ST Electronics' domain knowledge in aviation infrastructure systems integration and deep competency in satellite and communication technologies to explore novel applications of small satellites for CAAS and regional air navigation service providers. We are very excited about the prospect of demonstrating a space-based VHF communications and location service for smart air traffic control operations. This sustained collaboration exemplifies our deep focus on application of advanced technologies to deliver solutions that significantly enhance industry operations while creating value for customers," said Mr. Tang Kum Chuen, President of Satellite Systems, ST Electronics.

Mr. Børge Witthøft, Chief Commercial Officer of GomSpace, added "GomSpace is very pleased with the agreement on this joint study. It is a very exciting area and we hope that the results can contribute positively to future air traffic management. The ultimate goal is to increase safety while at the same time providing the possibility of more optimal flight levels and thus also reducing the amount of fuel used by airlines. With our strong capabilities within satellite communication systems and our year-long track record of monitoring commercial aircraft from space, we are confident that we together with our partners CAAS and ST Electronics can achieve some remarkable results."

About the Civil Aviation Authority of Singapore (CAAS)

The mission of the Civil Aviation Authority of Singapore (CAAS) is to grow a safe, vibrant air hub and civil aviation system, making a key contribution to Singapore's success. CAAS' roles are to oversee and promote safety in the aviation industry, develop the air hub and aviation industry, provide air navigation services, provide aviation training for human resource development, and contribute to the development of international civil aviation.

For more information, visit: www.caas.gov.sg 

About Singapore Technologies Electronics

ST Electronics (Singapore Technologies Electronics Limited) is the electronics arm of Singapore Technologies Engineering Ltd, one of the largest public-listed companies on the Singapore Stock Exchange. ST Electronics is a global engineering company specialising in the design, development and integration of advanced electronics and communications systems. Our capabilities are in Rail & Intelligent Transportation; Satellite & Broadband Communications; Info Comm Technologies; Command & Control operations, Training & Simulation; Intelligent Building & Security Systems and Cybersecurity. We have a presence in over 20 countries spanning North America, Latin America, Europe, Africa, the Middle East, China, India and Southeast Asia.

For more information, please visit www.stee.stengg.com  

About Gomspace Group AB

The Company's business operations are mainly conducted through the wholly-owned Danish subsidiary, GomSpace A/S, with operational office in Aalborg, Denmark. GomSpace is a space company with a mission to be engaged in the global market for space systems and services by introducing new products, i.e. components, platforms and systems based on innovation within professional nanosatellites. The Company is listed on the Nasdaq First North Premier exchange under the ticker GOMX. FNCA Sweden AB is the Company's Certified Adviser.

For more information, please visit our website on www.gomspace.com.

For more information, please contact:

Michelle Teo (Ms)
Assistant Director (Corporate Communications)
Civil Aviation Authority of Singapore
Tel: +65-6541-2086 
Mobile: +65-9825-0982
Email: michelle_teo@caas.gov.sg

Agnes Chang (Ms)
Assistant Vice President, Corporate Communications
ST Electronics
Tel: +65-6413-1788
Mobile: +65-98290676
Email: chang.chehhong.agnes@stee.stengg.com

Niels Buus (Mr.)
CEO
GomSpace A/S
Tel: +45-40-31-55-57
Email: nbu @ gomspace.com 

[1] VHF communications is currently not available over some parts of the South China Sea, due to the difficulty of siting ground-based equipment. Space-based VHF communications can surmount such limitations.

[2] The partnership among CAAS, ST Electronics and GomSpace brings together strong complementary capabilities. As the air navigation services provider for the Singapore FIR, CAAS has decades of experience managing air traffic flows. ST Electronics has more than 45 years of experience in the design, development and integration of advanced electronics and communications systems including real-time mission critical command and control, air traffic management and simulation systems. GomSpace is a leading designer, integrator and manufacturer of high-end small satellites for customers in the academic, government and commercial markets.

This information was brought to you by Cision http://news.cision.com

http://news.cision.com/gomspace-a-s/r/singapore-takes-next-step-towards-implementing-world-s-first-space-based-vhf-communications,c2445663

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ASSA ABLOY: A Strong Finish to 2017

STOCKHOLM, Feb. 6, 2018 /PRNewswire/ --

Fourth quarter

  • Net sales increased by 3% to SEK 20,109 M (19,484), with organic growth of 5% (1) and acquired net growth of 3% (2)
  • Strong growth has been exhibited by Global Technologies and EMEA and good growth by Americas, Entrance Systems and Asia Pacific
  • Contracts have been signed for the acquisition of two companies with combined expected annual sales of about SEK 400 M
  • Operating income[1] (EBIT) was SEK 3,359 M (2,913), corresponding to an operating margin of 16.7% (15.0)
  • Net income[1] amounted to SEK 2,385 M (2,088)
  • Earnings per share[1] amounted to SEK 2.15 (1.88)
  • Operating cash flow remained strong and amounted to SEK 4,876 M (4,620)
  • Nico Delvaux has been appointed as the new President and CEO of ASSA ABLOY with effect from 15 March 2018
  • The Board of Directors proposes a dividend of SEK 3.30 (3.00) per share for 2017.

Sales and income

 


 

Fourth quarter




 

January-December



 

2016

 

2017


 

?


 

2016

 

2017

 



 

Sales, SEK M

 

19,484

 

20,109


 

3%


 

71,293

 

76,137

 

7%



 

Of which:











 

Organic growth

 

120

 

878


 

5%


 

1,428

 

2,834

 

4%



 

Acquisitions and divestments

 

455

 

480


 

3%


 

1,967

 

1,753

 

2%



 

Exchange-rate effects

 

609

 

-733


 

-5%


 

-201

 

257

 

1%



 

Operating income[1](EBIT), SEK M

 

2,913

 

3,359


 

15%


 

11,254

 

12,341

 

10%



 

Operating margin[1] (EBITA), %

 

15.2%

 

17.1%




 

16.1%

 

16.5%




 

Operating margin[1](EBIT), %

 

15.0%

 

16.7%




 

15.8%

 

16.2%




 

Income before tax[1], SEK M

 

2,767

 

3,226


 

17%


 

10,549

 

11,673

 

11%



 

Net income[1], SEK M

 

2,088

 

2,385


 

14%


 

7,874

 

8,635

 

10%



 

Operating cash flow, SEK M

 

4,620

 

4,876


 

6%


 

10,467

 

10,929

 

4%



 

Earnings per share[1], SEK

 

1.88

 

2.15


 

14%


 

7.09

 

7.77

 

10%

[1] Excluding costs for a new restructuring program for the fourth quarter and full year 2016, totaling SEK -1,597 M before tax, corresponding to SEK ?1,221 M after tax.

Comments by the President and CEO

"ASSA ABLOY ended 2017 with strong growth in the fourth quarter," says Johan Molin, President and CEO. "Organically we grew by 5%, with positive trends for all divisions. Global Technologies and EMEA had strong growth of 9% and 5% respectively, and Americas, Entrance Systems and Asia Pacific all had good growth of 3-4%. Demand was positive for nearly all regions and business units, with strong demand for our electromechanical products and smart door locks. In EMEA we saw sales increase in all regions. All business units in Americas also showed growth ? even Brazil. In Asia Pacific we had growth in Pacific, South Korea and Southern Asia, while sales in China were stable. Our digital and mobile solutions continue to be very successful on the market. We saw strong growth in Global Technologies for access control products and mobile keys for both hotels and companies. In Entrance Systems we had strong growth for door automation, industrial doors and high-speed doors, among others.

During the quarter our leadership in smart door locks was confirmed by our collaboration with Amazon, where they chose our Yale locks for their new investment in home deliveries. Collaboration in smart door locks was also initiated with Walmart and Google during the quarter, to start in 2018. I am confident that the majority of all private residences will be converted to smart door locks during the next decade. A gigantic market is opening up! Our acquisition during the third quarter of August Home, a leading supplier of smart door solutions for the residential market in the USA, was therefore of strategic importance.

Our acquisition activity remained high during the fourth quarter with two acquisitions. We have signed a strategic contract to acquire Phoniro, a Swedish specialist in smart locks, personal alarms and access-control systems adapted to the care of the elderly ? a growth segment that is rapidly being digitalized. We have also acquired Dale & Excel, which complements very well our market offer in the UK.

Operating income for the quarter increased by 5%* and amounted to SEK 3,359 M with an operating margin of 16.7% (16.5*). The margin improved in EMEA, Global Technologies and Entrance Systems but was lower for Americas and for Asia Pacific.

My judgment is that the global economic trend has improved to some degree compared with last year. On most markets, especially in Europe, there is a positive trend, but on some markets, such as China and Brazil, demand remains weak. However, our strategy of expanding our market presence, even on the emerging markets, remains unchanged. We are also continuing our investments in new products, especially in the growth area of electromechanics.

In December Nico Delvaux was named as the new President and CEO of ASSA ABLOY AB. He began his employment with us on 3 February and during the next six weeks I will ensure a good handover to him before he takes over as CEO on 15 March. Nico is a strong and experienced leader of global businesses and I am confident that ASSA ABLOY's journey of profitable growth will continue under Nico's leadership.

With these comments I want to express my own thanks to all ASSA ABLOY's employees and to wish them and my successor Nico Delvaux a continuing successful journey".

* Excluding restructuring costs and the write-down in China in Q4 2016.
 

ASSA ABLOY is holding an analysts' meeting at 10.00 today at Operaterrassen in Stockholm, Sweden.

The analysts' meeting can also be followed on the Internet at www.assaabloy.com. It is possible to submit questions by telephone on: +46 8 5055 6476, +44 203 364 5371 or +1 877 679 2993

This information is information that ASSA ABLOY AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08.00 CEST on 6 February 2018.

Further information can be obtained from:
Johan Molin,
President and CEO
Tel: +46-8-506-485-42

Carolina Dybeck Happe,
Chief Financial Officer
Tel: +46-8-506-485-72

This information was brought to you by Cision http://news.cision.com
http://news.cision.com/assa-abloy/r/a-strong-finish-to-2017,c2445601

The following files are available for download:

 

Focusing on 5G End-to-End Solutions, ZTE Establishes Industry Leadership on Eve of 5G Commercialization

SHENZHEN, China, Feb. 6, 2018 /PRNewswire/ -- ZTE Corporation (0763.HK / 000063.SZ), a major international provider of telecommunications, enterprise and consumer technology solutions for the Mobile Internet, was early in identifying the opportunities opened by 5G and on developing a 5G strategy, as commercial deployments of 5th generation mobile networks, more widely known as 5G, approaches.  

With a focus on 5G end-to-end solutions, the company has pulled out all the stops in terms of standards formulation, research and development and validation of 5G technologies, in a move to establish industry leadership in the core technologies, the commercialization and the economies of scale for the next generation of mobile networks.

Continuously Setting Industry Benchmarks with Leading 5G Technologies

ZTE has placed a strong bet on 5G and has backed up that bet with a team of more than 4,500 high-tech talents devoted to 5G research backed by an annual investment of three billion yuan.

In addition to taking the lead in promoting massive multiple-input multiple-output (MIMO) technology, which will be key to significantly improving spectrum efficiency as well as expanding network capacity and coverage in the 5G era, ZTE was the first to apply 5G technology on a 4G network, enabling commercial 5G deployments ahead of schedule and improving the spectrum efficiency of the 4G network by a factor of eight.

The early moves have helped both operators and users benefit from 5G technology, while accelerating progress of Massive MIMO deployments amid continuous innovation, in addition to contributing technology proposals including test data results to 5G standards.

In order to meet the requirement for massive network access across 5G networks, industry-wide non-orthogonal multiple access (NOMA) has been proposed, with the Multi User Shared Access (MUSA) solution, the one proposed by ZTE, being the selected candidate. The solution enables the system to support 3-6 times of number of user accesses using the same time-frequency resources, allowing for genuinely conflict-free scheduling and greatly reducing terminal power consumption.

In China's second phase of 5G testing, the MUSA technology achieved a performance of 90 million connections/MHz/hour, far exceeding the benchmark defined by the International Telecommunication Union (ITU).

Because of the originality of the leading edge MUSA technology, ZTE, as the first drafter, led the adoption of NOMA by the 3GPP RAN Working Group 1, the group responsible for the specification of the physical layer of the radio interface (radio layer 1) for 5G New Radio (NR), driving the development of industrial standards.

At the same time, with strong chip design and development ability, ZTE launched the industry's highest integrated next generation baseband unit (NG BBU) based on a proprietary high-performance vector processing baseband chip developed in-house, and followed with the development of the industry's lightest and smallest 5G active antenna unit (AAU) based on a highly integrated digital IF chip.

In China's first and second phase of 5G testing, ZTE's 5G base station not only fulfilled the basic requirements, but also completed the 26 GHz high-frequency field test, with outstanding void performance results. Today, ZTE launched China's third phase of 5G testing with a full range of 5G products, and completed the roll out of equipment to the market and end-to-end debugging of commercial solutions.

Taking the Lead in 5G Commercialization and Putting Together a Global Portfolio by Entering High-end Markets

Based on ZTE's many 5G innovations, several of the world's leading mobile network operators have chosen to partner with ZTE.

In 2017, ZTE partnered with more than 20 of the world's leading mobile network operators in terms of 5G collaborations, including opening China's first 5G pre-commercial base station with China Mobile, initiating the first 5G field test with Japan's SoftBank and building Europe's first 5G pre-commercial network, among others.

Operators have lined up to collaborate with ZTE on commercializing 5G, including designing the strategy and rolling out field tests. Citing a few examples, Telefonica and ZTE have completed the 5G network architecture and load bearing test, and will further validate 5G end-to-end solutions. Orange plans to conduct a multi-site 5G independent networking architecture test with ZTE in Europe during 2018. China Mobile and ZTE have built an experimental network closely mirroring the real environment of 5G in Guangzhou province in a move to validate the 5G continuous networking capability, and plan to further expand the scale of the experimental network to cover most of Guangzhou in 2018. When carrying out the first 5G pre-commercial test in Xiong'an and Suzhou, China Telecom chose ZTE to explore innovative applications in vertical segments of the industry. In addition, the first 5G NR new open field test site constructed by China Unicom and ZTE has also completed service verification, achieving a peak rate of 2Gbps for a single UE.

In November 2017, ZTE partnered with Qualcomm and China Mobile to jointly complete the world's first end-to-end system test based on the 3GPP R15 standard, making full use of the ultra-high bandwidth and zero wait capability of the 5G network.

ZTE has already launched a series of products for 5G commercial applications, including a 5G series of access equipment, diversified 5G bearing solutions, a flexible and efficient 5G core network, among other products covering high and low frequency bands, fully preparing operators whose goals are to achieve large-scale commercial deployment of 5G in 2019.

Creating the Most Competitive Commercial Network with Leading 5G Economies of Scale

The goal of all governments and operators, as things stand today, is to generally have 5G in commercial use by 2020. The Chinese government plans to establish the world's largest 5G commercial network by then. In anticipation of the economic benefits that can be expected as a result of large-scale 5G deployments in China, ZTE plans to accelerate the pace at which the company reaches a level of maturity with its 5G infrastructure products and massively improve the scalability, providing operators worldwide with the most competitive 5G commercial network while taking a leadership role in terms of economies of scale.

In the 5G era, time-division duplex or TDD will play an even more important role in new 5G spectrum. Leveraging advanced TDD technology, ZTE offers all-line, multi-scenario and flexible 5G solutions, all of which were developed on the back of the firm's extensive experience in product development and network operation. Its TDD shipments have, for several consecutive years, accounted for one third of the world's total. ZTE plans to make full use of its advantages that the company developed during the 4G era to lay a solid and industry-leading foundation for 5G's advanced commercialized use and cost savings.

The largest 5G commercial network in China is expected to bring economies of scale, offering operators benefits in experience and cost.

Currently, ZTE's 5G-line solutions flexibly support different scenarios and provide the most cost-efficient network deployments. ZTE's leading role is highly acclaimed by the renowned consultant firm Ovum. According to the latest report released by the consultancy, in terms of six 5G product lines - Massive MIMO technology, 5G-line base stations, 5G carrier, backhaul/fronthaul, 5G core networks and terminals -, ZTE is one of only two vendors worldwide that can offer comprehensive 5G end-to-end solutions, as a result of their having a more comprehensive and in-depth understanding of the demands of every aspect of a 5G network.

Relying on the leadership that ZTE has across the three key drivers of 5G technologies - commercialization, economies of scale and innovation in the core technologies -, the international telecommunications provider anticipates that it will maintain its leadership position in the 5G era, promoting commercialization of 5G worldwide.

About ZTE

ZTE is a provider of advanced telecommunications systems, mobile devices, and enterprise technology solutions to consumers, carriers, companies and public sector customers. As part of ZTE's strategy, the company is committed to providing customers with integrated end-to-end innovations to deliver excellence and value as the telecommunications and information technology sectors converge. Listed in the stock exchanges of Hong Kong and Shenzhen (H share stock code: 0763.HK / A share stock code: 000063.SZ), ZTE's products and services are sold to over 500 operators in more than 160 countries. ZTE commits 10 per cent of its annual revenue to research and development and has leadership roles in international standard-setting organizations. ZTE is committed to corporate social responsibility and is a member of the UN Global Compact. For more information, please visit www.zte.com.cn.

Media Contacts:
Margaret Ma                                                       
ZTE Corporation                                                 
Tel: +86 755 26775189                                      
Email: ma.gaili@zte.com.cn      

 

 


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