Nera Telecommunications

Nera Telecommunications: 4Q13 net profit slipped 0.6% y/y to $3.8m on a 2% pullback in revenue to $44.5m. This brought FY13 earnings to $23.5m, above street estimates, while revenue of $178.2m came slightly below. For the quarter, the dismal topline came on the back of lower sales of microwave radio requipment in the Middle East and Africa market in its telecom business (-27.5%), partially offset by better sales of network equipment to the service providers under its infocomm segment (+21.7%). 4Q13 gross profit margin improved from 31.0% to 35.1% on a change in sales mix, as well as higher profit margin recorded from the completion of projects. Group maintained its final dividend of 4¢/share, bringing full year dividends to 6¢. At $0.715, NeraTel trades at a trailing 11x P/E.