Technicolor Connected Home revenues decrease significantly

Friday, February 24th, 2012
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PARIS, France — The Board of Directors of Technicolor (Euronext Paris: TCH) met yesterday to review the Group’s results for the full year of 2011.

Connected Home

In the fourth quarter of 2011, Connected Home revenues decreased significantly compared to the fourth quarter of 2010, as a result of a combination of several factors, including principally weaker shipments of Connected Home Products, a less favorable geographic and product mix, as well as continued slowdown in customer demand in Europe due to a still difficult economic environment.

  • In Satellite, the significant growth in set top box volumes in the fourth quarter of 2011 reflected a very strong customer demand across Latin America, particularly in Brazil, partly offset by lower shipments to North American customers from a strong fourth quarter of 2010, as well as a slowdown in customer spending in Europe. Overall Satellite product mix was less favorable year-on-year, due to a greater contribution of Latin America in Satellite volumes, as well as lower shipments of higher-end HD PVR products, reflecting notably hard disk drive supply constraints associated with flooding in Thailand.
  • In Cable, set top box volumes were primarily affected in the fourth quarter of 2011 by an unfavorable comparison against a strong fourth quarter of 2010, which had benefited from very large deliveries of digital-to-analog adapters to key North American customers. This negative impact was partially offset by continued strong customer demand across Latin America, notably for Cable broadband gateways. Overall Cable product mix improved materially compared with the same period of 2010.
  • In Telecom, the sharp volume decrease in the fourth quarter of 2011 principally reflected a continued slowdown in spending from European customers in a still difficult economic environment, with market demand remaining more oriented towards lower-end products. Year-over-year comparability was also affected by the phase out of two products in the second half of 2010. Overall Telecom product mix was less favorable year-on-year, due to weaker shipments of higher-end broadband gateways.

Connected Home Product volumes:

In million units               Q4 2010  Q4 2011  H2 2010  H2 2011  FY 2010  FY 2011
                               -------  -------  -------  -------  -------  -------
Total Connected Home Products      7.6      6.4     14.1     11.4     24.9     23.2
Change (%)                                (16)%             (19)%              (7)%
o/w Satellite                      2.6      3.0      4.7      5.2      8.2      9.5
Change (%)                                 +18%              +11%              +16%
o/w Cable                          2.3      1.7      4.4      3.2      7.2      7.0
Change (%)                                (26)%             (28)%              (3)%
o/w Telecom                        2.7      1.6      5.0      3.0      9.5      6.7
Change (%)                                (39)%             (39)%             (29)%