Kudelski posts loss in 2008
GENEVA - Swiss electronics group Kudelski, one of the world's largest makers of television decoders and digital security devices, on Friday recorded an annual net loss of CHF 7.0 million (EUR 4.7 million, USD 6.0 million).
The group also announced a USD 127 million bid to buy the outstanding shares in US company Open TV, the world’s leading maker of "middleware" software for decoders for cable, satellite and Internet television.
Kudelski, which bought a controlling stake in Open TV in 2007, said it submitted a proposal to buy shares at USD 1.35 per share, 35 percent above Thursday’s closing share price.
The Swiss-based group said in a statement that the purchase would provide better integration of the Open TV business.
"Efforts to improve efficiencies and service delivery are vital to both the Kudelski Group and Open TV in today’s economic environment," it added.
The annual loss for 2008 represented a sharp decline over net profit of CHF 67.4 million in 2007.
Kudelski said that the result was affected by scheduled technical changes in 2008 across its digital TV businesses, which are expected to receive improved operating profits overall and "substantially better" cash flows in 2009.
Operating profit fell by nearly 79 percent in 2008 to CHF 18.6 million but Kudelski estimated this would improve to between CHF 50 million and 60 million in 2009.
Revenues, which grew by 11 percent to CHF 1.03 billion, are expected to increase to between CHF 1.07 billion and 1.10 billion in 2009.
The company also announced contracts with a Taiwanese cable television provider, China Network Systems, and with China Mobile Multimedia Broadcasting in China for its new mobile TV venture.
Kudelski said the economic climate was expected to affect its middleware business and other sectors more than digital TV in 2009, and that it was taking steps to control costs.
AFP / Expatica