Sitronics Second-Quarter Loss Narrows to $12 Million
OAO Sitronics, the electronics maker controlled by Russian billionaire Vladimir Yevtushenkov, predicted sales will rise 23 percent this year after reporting a narrower second-quarter loss.
The net loss was $12 million, compared with $51.9 million a year earlier, the Moscow-based company, a unit of AFK Sistema, said in a statement today. Sales climbed 47 percent to $481 million. Sitronics forecast revenue will increase to $2 billion this year, or 23 percent more than in 2007, after previously predicting sales would outpace ``the forecast market growth of 15 percent.''
Sitronics, whose products include telecommunications equipment, software and consumer electronics, has sought contracts in India, Africa and the Middle East. The company signed new deals totaling $180 million in the second quarter, according to the statement.
``Our geographical range and industry sector experience enables us to enter new markets and provide tailored solutions for market-leading companies,'' Sitronics Chief Executive Officer Sergey Aslanyan said in the statement.
Sitronics completed the first phase of a $22.7 million project with Warid Telecom in Uganda, the statement said. The company's Greek unit Intracom Telecom SA agreed in May to build a back-up wireless telecommunications network in Syria for 40 million euros ($57 million).
The company has previously been hurt by project delays, including business with one of its main clients, OAO Mobile TeleSystems, Russia's biggest mobile-phone company, which is also a unit of Sistema.
Sitronics said it completed projects with Mobile TeleSystems by installing new systems for subscribers in Russia, Ukraine and Belarus, according to the statement.
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