DAA likely to be slowed by component shortages, says Teleste

The implementation of distributed access architecture projects for cable operators is likely to be slowed up by component shortages on the back of recovery of the global economy from the pandemic, according to broadband and TV technology outfit Teleste.

Posting an otherwise strong second quarter on the back of growth in public transport information and video security products, Teleste said that “distributed access architecture deployment projects are in the start-up stage” and that it had received orders from its major customers and announced a cooperation agreement with Liberty Global during the quarter.

However, it noted that “the rapid recovery of the global economy has had a negative impact on the availability of raw materials” and that this had increased the price of components.

“Ensuring the ability to deliver products and keep costs under control has become more challenging than usual. So far, we have managed to solve the component availability problems relatively well, but the situation will still require special attention during the second half of the year,” the company’s CEO Jukka Rinnevaara said.

“The availability of components will, to some degree, limit the deliveries of products during the remainder of the year. Consequently, the effect of the deliveries of distributed architecture products on net sales and operating result for this year will also be limited.”

Despite supply problems in this segment Teleste posted solid Q2 results, with sales up 5.8% to €35.8 million. Adjusted operating profits were down €100,000 to €1.1 million.