HELSINKI, FINLAND -- Elcoteq narrowed its fourth-quarter net loss on a slight uptick in revenue, the EMS company said today.

For the period ended Dec. 31, net sales were up 800,000 euros year-over-year to 266.3 million euros. The net loss was 11.2 million euros, versus a loss of 59.2 million euros a year ago. Operating income was 4.2 million euros, an improvement over last year's loss of 23.4 million euros. The printed circuit board assembler's restructuring costs were cut to 1.2 million euros, from 21.3 million a year ago. Cash flow after investments was 9.4 million euros, up from a loss of 11.3 million euros.

For the year, the company returned to a net profit of 15.8 million euros, versus a revised loss of 109 million euros, not including shuttered facilities (including those closed operations, the net loss in 2009 was 133.9 million euros). It was the company's first annual profit since 2006.

Elcoteq's full-year sales fell 29% to 1.07 billion euros. Elcoteq's net sales have plummeted over the past five years, falling from a high of 4.2 billion euros in 2006. The plunge has dropped the company's ranking among electronics manufacturing services companies from the top 5 to No. 11 in the latest CIRCUITS ASSEMBLY Top 50. The operating loss was 18.1 million euros, including 11 million euros in restructuring expenses, up from a loss of 76.5 million euros. The pretax profit before taxes was 43.7 million euros, up from a loss of 117.1 million euros. Cash flow after investments was 39.3 million euros, down 13.6 million euros.

Elcoteq also announced it has obtained a five-year export financing revolving credit facility of 100 million euros from a Hungarian bank.

For the year, the company saw growth in its after-market services business and declines in its EMS business, the latter mainly due to lower volume from one major customer and the sale of Elcoteq's Tallinn factory. Net EMS sales in 2010 were 962.9 million euros, down from 1.41 billion euros.

At the end of December, Elcoteq had cash totaling 90.9 million euros, up from 84.9 million euros in the third quarter and 87.9 million euros at the end of 2009.

In 2010, Elcoteq's largest customers (in alphabetical order) were EADS, Funai, Huawei, Humax, Inmarsat, Nokia, Philips, RIM, Sharp, Sony Ericsson and Technicolor. Some reports claim Huawei and Philips are its largest two customers.

Ed.: 1 EUR = 1.40847 USD

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