Annual report 2008 - Comrod

our number one position worldwide.- Also become a main supplier of relatedcomplete antenna systems; e.g. supportsystems for tactical communicationsolutions and infrastructure for the defencesector. A new product related to this wasintroduced in 2008.- The new loop antenna is expectedto become a major contributor to thecompany’s revenues and profit.MARKETS AND OUTLOOKComrod and Lerc are strong internationalbrands, recognised worldwide for supremequality and durability in the field.Comrod Communication Group’s targetedefforts over recent years has earned it aposition as a preferred supplier for the mainradio communication equipment producers;putting us in a position where we will havethe privilege of supplying antennas fora large portion of the new radios beingmanufactured.Staying at the forefront technologically,global distribution, alliances with differentsystem suppliers, quality and the flexibilityto deliver are key factors in the company’scompetitive edge.Defence communication is moving towardsthe use of COTS (commercial off the shelf)products rather than complex, expensivetailor-made solutions. The Group has along tradition of taking its own, innovativeproducts to the market and is well preparedto leverage this new trend.The defence segment is responsible forapproximately 88% of the business area’srevenues, whereas antennas for marine andcivil applications account for approximately12% of the company’s turnover.There is also a growing demand for therapid deployment of equipment with hightactility. The need for rapid deployment andmobile units is expected to increase thedemand for more compact communicationequipment involving integrated mast andantenna solutions and “smart boxes” withmore technology “packed” into a single mastor antenna.In general, there is less competition at thehigh-end of the market for these new systemtypes of products.Our current reputation and standing inthe market for defence antennas, togetherwith our high level of in-house expertisein communication technology solutions,both at Lerc and at Comrod, will serve as aplatform for growing our turnover in this newand fast emerging portion of the market.KEY FIGURES BUSINESS AREA ANTENNAS(NOK 1000) 2008 2007 2006 1)Revenues 259 601 170 764 129 289Operating profit (EBIT) 35 389 18 792 20 8161)The 2006 numbers are pro forma figuresTIMELINEBUSINESS AREAANTENNAS1960Comrod’s Productionof whip antennas forthe fishing fleet begins,based on fishing rodtechnology1970sComrod’s Antennatechnology transferredto the defence marketDiversification of Lercinto Masts and antennasfor defence radiocommunication1980sLerc delivery to the RITAprogramme (France)LERC wins majorprogramme for the USArmy: TRITAC/DAMP(USD 23M)1994Comrod becomes aleading supplier toGMDSS upgrades formerchant vessels12 Comrod Communication Group Annual report 2008