Gigaset Communications making good progress with successful products: Telephone manufacturer increases operating income and profitability
Europe’s market leader for DECT phones is continuing its positive trend: Gigaset Communications GmbH significantly increased its operating income and improved its efficiency in the first quarter of 2010. EBITDA was about 17.7 million euros on revenue of 125 million. Operating income in the same quarter of the previous year was well in the red at –17.6 million euros on revenue of 140 million. This shows clearly that the restructuring measures at the company, in which ARQUES Industries AG holds an 80-percent share, are gaining traction. As a premium vendor, Gigaset has been able to grow market share, especially in Europe, thanks to its successful products. Since its launch in the spring, the flagship model Gigaset SL400A – “the smallest Gigaset in the world” – has captured several awards and leads the rankings in the prestigious trade magazine connect with the rating “very good,” followed by other quality Gigaset products. Readers of Europe’s largest telecommunications magazine also voted the Gigaset SL400A “Product of the Year 2010” in the DECT category.
The company's performance is exceeding expectations, thanks to great demand for Gigaset products and supported by measures aimed at increasing profitability. In 2009, Gigaset Communications had taken intensive cost-cutting steps, reduced its headcount and focused on its core business of telephony. For 2010, the company now expects to post total revenue of about 500 million euros and sharply improve its return on investment.
In the first quarter, Gigaset surpassed its budget targets for revenue and margins, primarily due to strong sales in Europe. The cordless phone business is showing good performance, earnings strength has grown, and Gigaset is making good progress overall. Margins have increased, despite the fact that total revenue declined slightly year-on-year as a result of the sale of the loss-making Broadband and WiMAX divisions in July 2009 and Home Media in October 2009.
The strategy of concentrating on the core business of telephony and the focused positioning of the Gigaset brand in the premium segment are showing success. By selling low-margin peripheral activities and cutting the workforce, the company had already succeeded in 2009 in significantly improving its efficiency.
Gigaset Communications GmbH is one of the world’s largest manufacturers of cordless phones and the clear market leader in Europe for DECT phones. With its headquarters in Munich, the company develops, manufactures and distributes high-quality products under the brand Siemens Gigaset. Its portfolio includes fixed-network phones and Voice over IP devices. The primary production site is in Bocholt, Germany, where the Gigaset products are manufactured under the most stringent quality and environmental standards. Gigaset Communications is held by ARQUES Industries AG (80.2 percent) and Siemens AG (19.8 percent). Gigaset Communications is a licensee of the Siemens trademark.
The company's performance is exceeding expectations, thanks to great demand for Gigaset products and supported by measures aimed at increasing profitability. In 2009, Gigaset Communications had taken intensive cost-cutting steps, reduced its headcount and focused on its core business of telephony. For 2010, the company now expects to post total revenue of about 500 million euros and sharply improve its return on investment.
In the first quarter, Gigaset surpassed its budget targets for revenue and margins, primarily due to strong sales in Europe. The cordless phone business is showing good performance, earnings strength has grown, and Gigaset is making good progress overall. Margins have increased, despite the fact that total revenue declined slightly year-on-year as a result of the sale of the loss-making Broadband and WiMAX divisions in July 2009 and Home Media in October 2009.
The strategy of concentrating on the core business of telephony and the focused positioning of the Gigaset brand in the premium segment are showing success. By selling low-margin peripheral activities and cutting the workforce, the company had already succeeded in 2009 in significantly improving its efficiency.
Gigaset Communications GmbH is one of the world’s largest manufacturers of cordless phones and the clear market leader in Europe for DECT phones. With its headquarters in Munich, the company develops, manufactures and distributes high-quality products under the brand Siemens Gigaset. Its portfolio includes fixed-network phones and Voice over IP devices. The primary production site is in Bocholt, Germany, where the Gigaset products are manufactured under the most stringent quality and environmental standards. Gigaset Communications is held by ARQUES Industries AG (80.2 percent) and Siemens AG (19.8 percent). Gigaset Communications is a licensee of the Siemens trademark.
