Telrad earned $ 1.9 million in the fourth quarter of 2020 compared to a loss of $ 3.2 million

The Telrad company controlled by the Fortissimo Fund (41%) continues the positive trend of increasing its revenues and improving its profitability. Telrad is active in three sectors: products, solutions and services for communications operators; Communications infrastructure and information technologies; And business process outsourcing and project management.
The company, which is managed by Moti Elmaleh, earned $ 1.9 million in the fourth quarter of 2020 compared to a loss of $ 3.2 million in the same quarter in 2019. Telrad's revenue grew 25% in the fourth quarter of 2020 compared to the same quarter in 2019 and totaled $ 52 million. The main reason for the growth in revenue was a 62% increase in the communications infrastructure and information technology sector - to $ 29 million in the fourth quarter of 2020. This is due to an increase in demand from communications and government agencies in the field of health services due to the corona crisis.
Telrad also benefited from a 17% increase in revenue from the products and services of broadband Internet connectivity to telecommunications companies, which was partially offset by a decrease in revenue from services to communications companies in Latin America as a result of the Corona crisis to $ 16 million last quarter. The growth in these two sectors was partially offset - by a 30% decrease in business process outsourcing and project management revenue - to $ 7 million due to a decrease in activity and a lack of an approved budget.
Telrad's gross profit grew by 67% in the fourth quarter of 2020 compared to the same quarter in 2019 and amounted to $ 10 million. Gross profit grew in the three operating segments, also in the business process outsourcing and project management segment, where revenues fell by 30%. Gross profit in the communications infrastructure and information technology segment increased by 50% in the fourth quarter of 2020 to $ 4.4 million.
Gross profit in the products and solutions segment for telecommunications companies increased by 167% to $ 3.8 million thanks to an increase in activity, savings in fixed and variable costs and the fact that in the fourth quarter of 2019 a provision for impairment was recorded. The gross profit of the business process outsourcing and project management segment increased by 8% to $ 1.7 million, despite the decrease in revenue as a result of variable and fixed cost savings.