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 in a sustainable gigabit society.
Our strategies for achieving these targets are:
Focusing on Our Core Segment—Alternative Operators and Metro WDM
In deregulated markets, there are a large number of alternative operators and cable TV operators that need flexible, scalable and cost-efficient WDM solutions for metro networks. In this segment, which is in growth on all continents, Transmode has its largest customer base.
Geographical Growth—Expansionoutside Our Home Market of Europe
The majority of Transmode’s sales are in Europe. For continued growth, it is important that we expand 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. As we expand geographically, our Code of Conduct is a key tool for maintaining high standards of business ethics, environmental consideration and corporate social responsibility right through the value chain.
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. Transmode has developed a strong portfolio and market positioning in this segment— packet-optical networks.
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. This flexibility is used to exploit new opportunities outside our core segment. We can, for example, address large operators through niche solutions that help them manage the fast-growing capacity need in access networks with cost and energy efficiency. Business customers, who benefit from energy-efficient and compact products in data centers, are another example.
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 and strategic partnerships in segments that complement its existing product portfolio, bring access to new geographical markets and/ or enhance opportunities