NeraTel's net profit is $1.4m in H1

It secured orders across three business sectors.

Nera Telecommunications (NeraTel) reported a net profit of $1.4m for the first half ended 30 June, whilst revenue declined 41.1% year-on-year (YoY) to $47.3m in the first six months of 2024.

In its latest financial statement, NeraTel blamed the decline at "lower contributions from the government, transport, and utility (GTU) and service provider (SP) sectors." The enterprise (ENT) sector offset this with its $9.3m revenue contribution, up 34.8% YoY from $6.9m in H1 2023.

Revenue from the network infrastructure (NI) dropped 42.6% to $38.6m versus $67.2m in H1 2023. The wireless infrastructure network (WIN) also saw its contribution decrease by 34.1% YoY to $8.7m.

Gross profit for H1 is 24.3% YoY lower at $13.1m.

Order intake for H1 grew 65.2% YoY to $76.8m, compared to just $46.5m in H1.

The group secured orders across the service provider, enterprise and government, and transport and utilities segments.

Despite that, the group reported a 6.1% increase in gross profit margin to 27.7% and a generated operating cash flow of $4.2m, with $10.2m net cash.

Recurring income streams improved due to managed services and maintenance support, with a recent 3-year $17.6m renewal contract and a five-year $10m project in Southeast Asia, NeraTel said.