Open Insight #15
(Click here to read the Swedish version)
Welcome to the fifteenth edition of Open Insight, our blog for investors. This is where you can find out more about our offering and market position, our progress, our challenges and our growth.
2022 was the year when we established our position as a strong provider in 5G time synchronization. It was the year we achieved our strongest operating earnings ever. We can pride ourselves on stable growth, important steps forward in Cloud and IP and, last but not least, the launch of our new product Zyntai for 5G synchronization. However, it was also the year when inflation soared, a shortage of components sometimes posed challenges and we noted a tendency for investment hesitancy among customers.
We succeeded in navigating these challenges by staying focused on our strategy, and have not only delivered on our financial targets, but surpassed them. The results led us to revise our targets, and I am highly confident that we will achieve them. Important factors for increased growth include our newly developed synchronization product for 5G and an expanded offering of Cloud and IP Media Gateway solutions, which will be launched in 2023. We expect the growth to vary over the years but to exceed 15%. A higher proportion of support and licensing revenue as well as improved scalability in our business are also expected to contribute to further strengthening our operating margin. Our new financial targets in 2023–2027 are an organic average annual growth of at least 15% and an operating margin (EBIT%) that within the period will reach 20%.
In this issue we will take a closer look at our intensive development in 5G synchronization and our new product, which has been launched and will be showcased at the Mobile World Congress in Barcelona. We will talk about how we shortened the lead times for customer testing of our synchronization products, and about the successful verification testing of the new 5G synchronization architecture.