Transmode's Mission Statement
Delivering packet-optical networking solutions that increase network capacity in a cost effective manner, to make our customers successful, today and tomorrow.
Transmode's Overall Targets
- To grow faster than the market
- To grow profitably
- To have very satisfied customers
- To be an attractive employer
- To contribute to a sustainable society
Transmode's Financial Targets
Transmode's Board of Directors has adopted the following financial targets:
- For the company's yearly sales growth to behigher than the yearly growth of the global market for Metro WDM equipment.
- To have an operating margin of 12% (excludingextraordinary items) or more over a business cycle.
- To propose an annual dividend, which overtime, is between 25 and 50% of Transmode's profit for the year for the preceding fiscal year. See more
Transmode's vision is to become the Global Optical Star through innovation and efficiency, with the most satisfied customers, the best employees and the most satisfied shareholders on the global telecom market.
Our strategies for achieving these targets are:
Focusing on Our Core Segment— Alternative Operators and Metro WDM
Growth is high in this segment on all continents, and there are a large number of alternative operators and cable TV operators that need flexible, scalable and cost-efficient network solutions.
Geographical Growth—Expansion outside Our Home Market of Europe
Transmode already has significant sales in Europe. For continued growth, it is important that we strengthen our presence further, primarily in the Americas and APAC. Transmode is achieving this by increasing the number of sales resources, as well as deepening and extending its collaborations with resellers and partners.
Leading the Integration of Ethernet Functionality in Optical Metro Networks
Most of the traffic increase in networks, fixed and mobile, takes the form of Ethernet-based data traffic. So for most Transmode customers, managing this traffic simply and cost-efficiently is a top priority. A high share of Transmode's product development focuses on this segment.
Exploiting Product Flexibility to Grow into New Customer Segments
Transmode's products can be compared to building blocks that can be combined to solve specific problems for many different types of customer. For example, this flexibility can be used to exploit new opportunities outside our core segment. We can, for example, address large operators through niche solutions that help them manage the fastgrowing capacity need in access networks costefficiently. Business customers in the financial sector are another example, who benefit from solutions with low latency.
Cost Focus—Low Fixed Costs, High Margins and Efficient Utilization of Capital
Transmode has successfully kept its own and customers' costs in check by focusing on costefficiency in all parts of its business. A simple organizational structure and centralized operations create high efficiency and reduce administrative costs. Cost control has always been part of the company's DNA and is a key factor when retaining healthy gross margins.
Focusing on Organic Growth
Transmode focuses on organic growth, but continuously screens potential value-creating acquisitions in segments that complement its existing product portfolio, bring access to new geographical markets and/or enhance opportunities in selected customer segments.