"Despite the exceptional market conditions caused by the Covid-19 virus, the good momentum achieved last year resulted in a record quarter – adjusted operating profit was 2.3 million euros or 23% of revenue, being the best first-quarter result in the Company’s history.
First-quarter revenue was 9.8 million euros, up 3% compared to the previous year.
New orders booked during the year amounted to 19.8 million euros. The order book grew by 10.0 million euros compared to the end of the previous financial period, reaching a comfortable level of 35.5 million euros. Of the order book, 56% comprised goods and service deliveries and 44% maintenance service deliveries, whereas at the end of the first quarter of the previous year, 73% of the order book comprised maintenance service deliveries. The growth in the order book for goods and service deliveries is a direct indication of increased market interest and supports revenue growth.
Positive cash flow in the first quarter of the year further strengthened the Company’s financial position. Investments in product development continued, and I am pleased to hear that two new products were completed during the quarter. Increased focus on tax planning has also started to bear fruit in the form of lower taxes paid, while simultaneously growing the business.
We want to forge new partnerships with other Internet of Things (IoT) service providers, grow our competitive advantage, reach new markets, and strengthen our customer base globally, so that our customers can benefit from all Tecnotree Digital BSS Suite 5 products and our capabilities in the deployment, operation, and management of digital products."
Plans for the coming year:
“The Company further strengthened and stabilized its operations in 2019 and restarted growth-supporting investments. In 2020, the Company will continue to invest in expanding its markets and in profitable growth.”
The report can be read and downloaded from Tecnotree’s website.
Thanks, Winston. I was in such an investment frenzy last February that I even bought Tecnotree when its reports looked positive. I thought that with good luck, this type of company would survive recessions if its customers didn’t run into financial difficulties. I haven’t dared to look at the stock price, but maybe I should…
True! I think it’s just the strong rises of the last few days. Now we’re leveling off the course a bit. And it doesn’t look like more than -3% at the moment
This is a manic-depressive stock with two competing forces:
Upwards = a turnaround is underway and the business looks good
Downwards = the restructuring program brings the risk that if the corona situation stalls progress, it could easily go bankrupt
When you add low trading volume to this, the daily fluctuations are huge, it feels like it’s always +/-3% minimum . I guess many people also play for quick wins with this one since it fluctuates so much. If it survives corona, the returns will be big. I have so little invested in this that even if it goes bankrupt, it won’t rock the boat.
Tecnotree was probably the biggest riser last year, and Q1 gave a good outlook for the future. Hopefully, the other quarters of the year will also yield good numbers and this stock will head towards a euro
The result was excellent, the revenue growth was a bit disappointing for me personally. But it was profitable growth. I’m sure we can get a small upside for this, I would think.
Hey Dudes!
I spotted this stock a couple of years ago and took big ups, but I’ve also never agreed to sell.. Selling is very difficult.. but yeah, I don’t understand why these “paistit” (newbies/fools) don’t let the price go up, but keep it below 0.2 with small sales. I feel like pushing through that limit, but let’s see Great that I found this thread, so I’m getting to know other Tecno fans.
Now some people are getting the company very cheap as the weak-nerved give in and sell. I believe in a very good Q2 based on order books, and the top 100 owner list hasn’t changed either. Tecno has had a good flow for a long time, and generally, when a company gets that, it’s hard to stop. I also don’t believe that corona will significantly affect their operations. People can do those jobs pretty well remotely.
I guess the buyers will find it at the latest when big values start disappearing from quality stocks.
If we get good results again with Q2 or Q3, I’m sure we’ll start to go up from there. A strong earnings turnaround is underway and the Q1 report was very strong. Of course, the ghosts of the past are still scaring us, e.g., these legal challenges against the company.
Tecnotree seems quite interesting. Aren’t these service and software providers for telecom operators the “hottest thing” right now? Revenue is growing, adjusted operating profit is growing, and the order backlog has been growing strongly compared to a year ago. Staff and R&D expenses are being increased, and according to the company’s communication, these have resulted in new products and customers. There seems to be demand for Tecnotree’s products.
The coronavirus seems to be circling Tecnotree from afar, with actual work being carried out remotely. It’s unclear to me how customer acquisition and customer relationship management works, but probably reasonably well. And how critical the corona situation actually is in the Middle East or Africa. A strong order backlog will surely also provide a buffer if corona causes greater worries in the short term.
In any case, corona, the restructuring program, and the “Vikings” will continue to cause headaches for owners. If anyone knows more about this ownership group, it would be interesting to hear. They tried to buy the company and when that failed, they became a bitter minority shareholder. Now that they couldn’t buy some individual operations, they immediately filed a new lawsuit.
I was positively surprised by how active and followed Tecnotree’s LinkedIn profile is.
A few highlights from the previous news:
“The new $3.35 million purchase order for Phase 1 of a multi-stage deployment expands Tecnotree’s long-standing partnership with a customer that has one of the largest customer bases in Africa.”
“In the first phase, Tecnotree will provide its Digital Convergent Billing System (DCBS) solution and its Digital Accelerator Platform (DAP), known as Tecnotree Surge. Both products are designed to support business goals and increase revenue.”
“Tecnotree’s DCBS solution reduces complexity, improves accuracy, and speeds up with a consistent billing solution applicable to all business and service lines.”
It’s excellent that Tecnotree has gained a strong foothold in the African market. The developing continent needs professional expertise, and there will be no shortage of demand in the future. People’s living conditions are improving as modern states support Africa’s growth and development. Tecnotree’s collaborations have also proven robust, and long-term partners (like this one) have been brought into operation.
I pocketed a little (CEO, that is). Let’s see if I get lucky. At least I won’t regret trying, unlike with Qt Group (everyone praised it, but I didn’t dare buy it - and 6 months later +50% :s).
What is the company’s current financial situation or need for additional funding? I read Inderes’ report when they stopped covering the company a little over a year ago, and it warned investors about dilution and the inadequacy of the Fitzroy financing package. Mainly, since the price has now quickly reached the same level as in 2014, if I were to take an opening position and dilution hit from the left field, it would be as annoying as a squirrel in the rain without nuts
. I guess many people also play for quick wins with this one since it fluctuates so much. If it survives corona, the returns will be big. I have so little invested in this that even if it goes bankrupt, it won’t rock the boat.
Great that I found this thread, so I’m getting to know other Tecno fans.
