Teleste announced on 15 May 2020:
TELESTE WILL FOCUS ON TECHNOLOGY BUSINESSES AND SUPPORTING HIGHER ADDED VALUE SERVICES AND WILL DIVEST ITS SERVICES BUSINESS IN GERMANY
Teleste has revised its strategy according to which the company will focus on technology business operations and the services of higher added value supporting them. As a result, the company has decided to divest its services business in Germany. The company will assess different options, the primary objective being to sell the services business of the Germany-based Cableway companies during the next few months. Teleste Corporation's Board of Directors has decided to classify the services business of the Germany-based Cableway companies according to IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations” and will report it according to the standard in its first quarter 2020 interim report.
Grow Distributed Access Architecture business
The transition of the network technology market is progressing and old technologies are being replaced by new ones. Teleste is strong in traditional optical fibre and coaxial cable (cable TV) hybrid network (HFC networks) technology. Distributed access architecture brings functions closer to consumers, enabling more cost-efficient development of an increasingly smart and powerful network.
The adoption of this new technology will increase operators’ network investments in the next few years. Teleste’s technological head start has enabled it to already develop distributed architecture expertise and suitable products. The objective is to immediately achieve a strong market position when investments in the new technology begin.
Entering the US markets
Teleste has a strong market position in access network products in Europe. We are now seeking growth by expanding our market area particularly into North American markets, in which Teleste is engaged in a joint venture as the majority shareholder. Potential customers are currently testing access network products supplied by Teleste and modified to suit the needs of these markets. There is clearly potential in US and Canadian markets for an innovative technology supplier like Teleste.
Become market leader for Public Transport solutions
Teleste has already established its position as a high-quality provider of passenger information and security solutions. Therefore, it is possible to achieve market leadership in public transport solutions. We are targeting the growing European and North American markets. We ensure profitable growth by maintaining continuous high quality, an innovative offering and excellent reliability of delivery.
Commercial success with Video Security and Situational Awareness
Teleste provides its European and North American customers with comprehensive video security and situational awareness solutions. Customers’ needs are shifting from surveillance towards more extensive situational awareness consisting of different systems to achieve overall control of situations. In the future, we will focus on developing increasingly comprehensive and smart solutions. Our product development will focus on software connecting different systems, wireless solutions and mobile applications.
Develope operational performance in services business
Services business focuses on the improvement of productivity and development of innovative solutions to satisfy customers’ needs. The profitability improvement measures are mainly targeted at our business in Germany. Its performance has already been improved through comprehensive operational changes and reorganisation. The development of the offering focuses on creating high added-value services and tools that decrease the life cycle costs of networks. The tough price competition in the services business means that services must be efficiently produced in order to ensure profitable business, but the pricing of high added-value services can be more value-based.
Teleste is an international high-tech company whose competitiveness is largely based on highly skilled and motivated personnel. We apply Lean ideology-based operating models that promote innovation and high quality and are built on continuous improvement. Ensuring an adequate level of expertise is one of the cornerstones of our strategy. In order to promote co-operation and improve productivity, we focus on the development of internal communication and the utilisation of efficient HR processes.