Rohde & Schwarz stable amid restrained economic conditions

Rohde & Schwarz stable amid restrained economic conditions 27 October 2014

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Rohde & Schwarz can look back on a stable fiscal year 2013/2014 (July to June). The economic environment in the electronics groups key markets was more challenging than in previous years. However, Rohde & Schwarz successfully defended its market position in all of its business fields, mainly as a result of its technologically leading product range and a stable situation in the core European markets. In Latin America, the group actually achieved a significant increase in incoming orders. The USA and Asia remain the most important growth markets for the family-owned company headquartered in Munich.

The volume of incoming orders stabilized at approximately EUR 1.8 billion over the past fiscal year (July 2013 to June 2014). The net revenue of EUR 1.75 billion was on target. At the end of the fiscal year, the company had some 9800 employees, as compared with 9300 a year earlier.

The business of Rohde & Schwarz is based on four pillars: test and measurement, broadcasting, secure communications, radiomonitoring and radiolocation. In the test and measurement business field, the group was able to defend its market share in the past fiscal year. The main source of revenue was again wireless communications T&M equipment. After several years of booming business, demand in this market has normalized. However, an expanded product portfolio enabled the company to again achieve positive results in its business with mobile network operators. Together with subsidiaries ipoque and SwissQual, Rohde & Schwarz offers T&M solutions for the entire lifecycle of a wireless network from a single source. This is unparalleled in the market. The company also posted gains in the wide-base market with its general purpose T&M equipment grouped under the "Value Instruments" label. This offering rounds out the Rohde & Schwarz product portfolio in the lower price segment.

In the broadcasting business field, Rohde & Schwarz does not simply rely on its established customer segments in transmitters and test and measurement equipment. The company has been consistently expanding its expertise as a provider of broadcasting and media technology along the entire value chain. For example, Rohde & Schwarz already offers solutions for the complete transmission path of the high-resolution 4K video format, from ingest, post production and A/V headends to transmission. The company has won important reference projects in this area, such as the Rohde & Schwarz 4K end-to-end system chosen by Seoul Broadcasting System (SBS) in South Korea.

The secure communications business field felt the effects of geopolitical developments and the fiscal restraint in many countries. Nevertheless, the company is well-positioned for the future due to its strong expertise in key technologies and decisive investments in innovative products. The new generation of software defined radios ensures high data rate anti-jam communications within the framework of network centric operations. In air traffic control, Rohde & Schwarz is the first provider to offer virtual control centers operating across national boundaries, backed by a fully IP-based voice communications system. Important reference projects secured in this area have sent out positive signals. The radiomonitoring and radiolocation business field also had a successful year and maintained the high level of incoming orders reported in the previous year.

To further ensure future success, Rohde & Schwarz is intensifying its investments in the cyber security market. The new subsidiary gateprotect, acquired in July, will enhance the electronics groups expertise in network security. Rohde & Schwarz also plans to strengthen its position in cyber security in the B2B segment.

Rohde & Schwarz

The Rohde & Schwarz electronics group is a leading supplier of solutions in the following business fields: test and measurement, broadcast and media, secure communications, radiomonitoring and radiolocation. Founded more than 80 years ago, this independent company has an extensive sales and service network and is present in more than 70 countries. On June 30, 2014, Rohde & Schwarz had approximately 9800 employees. It achieved a net revenue of EUR 1.75 billion in the 2013/2014 fiscal year (July to June). The company is headquartered in Munich, Germany. It also has regional headquarters in Singapore and Columbia, Maryland, USA, to manage its operations in these regions.

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