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NeraTel – An Abandoned Child

Prior to writing this post, I have divested all my NeraTel shares at a loss of 14.2%. This is including of the dividends I have collected. I shall share the reasons why I made the decision to do so.

NeraTel announced its 4Q2016 financial results on 22nd February 2017. After the sale of its payment solution business to Ingenico, NeraTel business is left with the Telecommunication business segment and Network Infrastructure business segment.

In 4Q2016, revenue from the Telecommunication business segment decreased slightly by 4% ($0.8 million) from $19.1 million to $18.3 million. Revenue from the Network Infrastructure business segment improved by 54.0% ($11.0 million) from $20.3 million to $31.3 million.

If we compare FY16 with FY15, revenue increased by 22.3% ($19.9 million) from $134.8 million to $164.9 million. Although revenue has increased, gross profit for FY 2016 declined by 6.6% from $45.2 million to $42.2 million. Why? (more…)

Nera Telecommunications Pays Special Dividends

neratel-logo

When I was reading through the third quarter financial results of Nera Telecommunications Ltd, I found out that Mr Ang Seong Kang Samuel, the Chief Executive Officer of Nera Telecommunications Ltd has tendered his resignation. The reason given his cessation on SGX announcement was retirement. Mr Ang is 61 years old. Mr Beck Tong Hong will act as Chief Executive Officer in the interim.

Nera Telecommunications has also announced a special dividend of $0.15. The special dividend payout was from the sale proceeds of its payment solutions few months ago. (NeraTel Completes Sale of Payment Solutions) (more…)

NeraTel Completes Sale of Payment Solutions

NeraTel Payment Terminal

In my previous post, I mentioned NeraTel is selling its payment solution business (How Will Sale of NeraTel Payment Solution Business Impact Me). On 31st August 2016, NeraTel has officially announced it has completed the sale of its payment business to Ingenico Group.

The completion of sale announcement was made a month after NeraTel reported a 3.5% decline in gross profit from 15.9 million to 15.3 million YOY. The turnover for Payment Solutions business area has declined 52.1% ($6.5 million) YOY from $12.5 million to $6.0 million for the quarter and 44.3% ($10.3 million) YOY from $23.2 million to $12.9 million for 1H 2016. (more…)

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