Ascom revenues fail to keep pace with profits

The telecommunications group, Ascom, says its revenues increased by ten per cent last year to SFr3 billion. Incoming orders were up seven per cent to SFr2.96 billion.

The telecommunications group, Ascom, says its revenues increased by ten per cent last year to SFr3 billion. Incoming orders were up seven per cent to SFr2.96 billion.

Ascom has already revealed that net profit in the first half of 1999 jumped by 95 per cent to SFr39 million. First-half sales had been up seven per cent at SFr1.37 billion, while incoming orders held steady at SFr1.47 billion.

“The numbers are quite good, however slightly below the expectations of our analyst,” said Elonore Charrez, a trader with Bank Leu in Geneva.

“We had expected an increase of 15 per cent on the sales side and roughly the same on the incoming order side – so it’s slightly lower than expected but all in all I think it’s a positive number,” she added.

Looking at the stock, she said that it had a “very strong upmove recently” and it is currently consolidating at a very high level.

“I wouldn’t be surprised by some profit-taking setting in after today’s numbers,” Charrez explained. “But the outlook is positive and our analyst still has an outperform rating on the stock.”

Full accounts for Ascom will be published on April 11.