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Posted on April 18, 2011
Amper SA, a Spanish maker of communications equipment, aims to break even within three years as sales and profit from Latin America offset declines in its domestic market, Chief Executive Officer Alfredo Redondo said.
Amper, which has reported net losses for the last two years, aims to return to profitability between 2011 and 2013 as new contracts in the Middle East, soaring demand from Latin America and cost cuts in Spain boost sales and earnings before interest, taxes, depreciation and amortization, Redondo said.
“Our growth plans are aggressive but reachable,” the CEO said in a phone interview. “Latin America is growing rapidly and Spain continues to slow down.”
Full-year sales for the Madrid-based company will jump more than 60 percent to 420 million euros ($608 million), thanks to the purchase of eLandia International Inc. and a “very significant” defense contract from the United Arab Emirates, the 49-year-old executive said. Those deals, as well as savings from job cuts in Spain, will allow Ebitda to reach 20 million euros in 2011, he said.
The executive, who became CEO of Amper in July 2010 after being the president of the Spanish division of Paris-based Alcatel-Lucent SA, declined to comment on whether the company will be profitable this year.
Amper said April 1 that it bought an 85 percent stake in U.S.-based eLandia by swapping 79.7 percent of its Medidata Informatica Telecom unit in Brazil. The transaction will give Amper access to more than 3,000 new clients in 17 countries in Latin America and the South Pacific region, the company said.
Amper was founded in 1956 as an entry-phone maker and its business includes providing radio communications equipment to the Spanish army. Other clients include phone operators Telefonica SA and Vodafone Group Plc., Spanish utility Endesa SA and Repsol YPF SA, Spain’s biggest oil company. Telefonica, Spain’s former phone monopoly, has a 5.8 percent stake in Amper, the equipment maker said April 15.
Amper said in February that it signed a three-year contract valued at more than 90 million euros with Emiraje Systems, a company from the United Arab Emirates, to develop and supply defense systems.
“Performance so far this year is in line with our business plan,” Redondo said. “We predict huge growth potential in Latin America and especially in the banking, energy and health industries.”
Foreign sales will climb this year to account for more than 50 percent of the total from about 30 percent a year earlier, the executive said. Amper will consider acquisitions in existing and new markets after consolidating its current operations, he said
The company said in November it aims for 2013 sales of as much as 520 million euros with Ebitda of 36 million euros to 40 million euros.
Amper, whose suppliers include Microsoft Corp. and Cisco Systems Inc., has gained 41 this year in Madrid trading, valuing the company at 132 million euros. The Ibex 35 Index climbed 6 percent in the period. Amper shares fell almost 50 percent last year.
“Amper still needs to recover credibility from investors,” Redondo said. “We just need to be a regular and more stable company.”
To contact the reporter on this story: Manuel Baigorri in Madrid at firstname.lastname@example.org
To contact the editor responsible for this story: Kenneth Wong in Berlin at email@example.com