The technology group Rohde & Schwarz closed its 2019/2020 financial year successfully despite a difficult global economic environment and the consequences of the coronavirus pandemic. Thanks to its consistent diversification into the business areas of communication, information and security, the Group recorded another year of growth. Rohde & Schwarz thus proved itself to be a reliable technology partner even in difficult times.
The independent technology group Rohde & Schwarz closed its 2019/2020 financial year (July to June) with sales of 2.58 billion euros. With an increase in sales of 20 percent, the Group grew for the third year in a row. This proves that the family-owned company's strategy of sustainable management was once again the right one. Thanks to its high level of vertical integration, flexible production processes and robust supply chains, the company successfully navigated through the difficult global economic environment of the past financial year. The clear focus on the needs of its customers in the growth markets of connectivity and security also contributed to its success. The number of employees rose moderately to around 12,300 worldwide.
Rohde & Schwarz benefits from high investments in wireless technologies
The rollout of mobile networks based on the fifth generation of 5G technology was faster than expected. The Covid-19-related slump in sales on the end device market did not noticeably slow down the mobile industry's propensity to invest until the middle of the year. The size and importance of the market as well as strong competition on both the device and network side prompted device and infrastructure manufacturers to invest heavily in measurement technology. Rohde & Schwarz benefited from this along the entire mobile communications value chain. With its measurement technology, the company is also well positioned for the Internet of Things (IoT): Under the term Industry 4.0, 5G will revolutionize factory automation through wireless networking of operating equipment. Rohde & Schwarz has already developed a complete measurement technology portfolio for setting up and reliably operating 5G factory networks.
In the automotive sector, the market responded positively to the company's innovations in radar sensor technology and vehicle networking, enabling Rohde & Schwarz to position itself promisingly for the future.
Mobile communications and broadcasting grow together
The introduction of 5G mobile communications opens up the possibility of using the advantages of a terrestrial broadcast infrastructure for mobile communications: TV signals and data can be transmitted to mobile devices without burdening mobile networks. The first 5G TV test network sold sets an example in the market and demonstrates the potential of the technology co-developed by Rohde & Schwarz. The global market leader for TV broadcasters is also driving a technology change in satellite transmission.
With the new semiconductor amplifiers launched on the market, operators now have a technically and economically superior alternative to the still dominant tube amplifiers.
Expansion of networking in the public sector drives demand
Corona has clearly demonstrated the value of fast and secure internet connections - not only in the private sector, but also in industry and the public sector. A number of contracts for Wi-Fi networking in schools have been won from the DigitalPakt Schule (Digital Pact for Schools), which has received substantial funding from the federal and state governments. In addition, some federal states invested in the IT security of their administrative networks and equipped their authorities with BSI-certified encryption technology from Rohde & Schwarz.
Security is at the top of the agenda
Despite the slump in air traffic in the second half of the financial year, business with radio systems for air traffic control and security scanners for passenger handling was encouraging. With its technologically leading CERTIUM® air traffic control portfolio, Rohde & Schwarz offers a complete range of hardware, software and service components, which was expanded in 2020 to include a new, state-of-the-art radio device family.
The company's security scanners have captured a significant market share since their launch and can be found at airports around the world. A new walk-through model for the non-regulated security market meets the growing demand for security products in the private sector. Typical applications include major events, loss prevention and the protection of data centers.
Naval forces rely on R&S communication systems
In the naval market, global investment in new frigates and patrol vessels is putting increased price pressure on suppliers. Thanks to the innovative product portfolio bundled under the NAVICS® and SOVERON® brands, the company nevertheless succeeded in growing again in this segment. An important signal to the market was the delivery of the first British Type 26 frigate with full NAVICS® equipment to the Royal Navy.
The coronavirus pandemic has confronted the world with an unprecedented challenge, the consequences of which can hardly be reliably estimated. Rohde & Schwarz's business areas will be affected to varying degrees in the new fiscal year. In this context, the broad diversification of target markets addressing private and public sector customers will once again prove to be an advantage. Thanks to its extremely solid economic basis and its highly modern processes and structures, Rohde & Schwarz believes it is well prepared for all future scenarios.
