NeraTel – An Abandoned Child

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? Read 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) Read More