ECI Telecom in Brazil. Brazil: Technological Innovation & investment Opportunities. December 15, 2008 Tel Aviv. Aviel Tenenbaum Executive Vice President, GS&M. ECI Snapshot.
Brazil: Technological Innovation & investment Opportunities
December 15, 2008Tel Aviv
Executive Vice President, GS&M
Global provider of equipment infrastructure solutions and services for telecom operators with focus on Transport and Broadband Access solutions for bandwidth-intensive applications (3rd. Quad play, IPTV)
Strong, entrenched positions with major carriers in emerging markets and in developed ones
Established in 1961. HQ in Israel, went public in 1982 and became private in 2007
Development centers in Israel, U.S., India and China, employing more than 1,000 R&D engineers
2008 revenues of over US$700 million, booking run rate approaching US$1B
Installed base of over US$7 billions worldwide
On September 2007 ECI was acquired by the Swarth Group and the London-based Ashmore Group in a transaction valued at $1.25 billion.
Following the acquisition, the company made a very successful turnaround, including:
Structure Reorganization - simplifying, reducing redundancies, increasing efficiencies - cost savings of $30 million annually;
Outsourcing the manufacturing to Flextronics, the world leader outsourcing group ($40 bln annual sales) to allow ECI focusing on its core competencies;
Expanding product offering – CESR, GPON
Expanding to new territories – inc. Brazil and Africa (more than 10% of ECI’s orders in the first year)
Considering M&A opportunitiesThe 2007 Acquisition
2008 is becoming a record year for ECI: the London-based Ashmore Group in a transaction valued at $1.25 billion.
Major wins in India, Latin America, North America, Africa Russia and Europe
Launching of new products (CESR – awarded the Best Product of the Year, more than 10 new customers in first 4 months)
Order intake in 2008 of over US$800M, more than 25% growth compared to 2007 and a current run rate approaching US$1B
Revenues more than $700M, over 10% growth YoY
Services revenues of more than $100M
Current backlog of $270 million – double YoY.
2009 forecast – continuous growth2008 – Going to a Record Year
* 31-march-2008 the London-based Ashmore Group in a transaction valued at $1.25 billion.ECI’s Growth Strategy
Simplicity and availability of content and applications everywhere,at any time
Any Service…Any Device…Everywhere…Anytime
Brazil is Part of ECI’s Growth Strategy the London-based Ashmore Group in a transaction valued at $1.25 billion.