Rohde & Schwarz closes challenging fiscal year successfully
Despite complex global challenges, Rohde & Schwarz has closed the 2022/2023 fiscal year successfully. For the first time in its 90-year history, the technology group topped the three billion euro mark for order intake. This shows that the group is well positioned in growth markets thanks to its focus on security and connectivity. Also in the reporting period, Rohde & Schwarz continued to invest systematically in its own vertical integration and key technologies in order to remain independent, flexible and technologically relevant for its customers.
MUNICH, Nov. 14, 2023 /PRNewswire/ -- The 2022/2023 fiscal year (July to June) was marked by geopolitical uncertainty and difficult economic conditions. Nevertheless, Rohde & Schwarz achieved an excellent order intake of well over EUR 3 billion and revenue rose to EUR 2.78 billion. The positive operating result was also in line with expectations. On June 30, 2023, Rohde & Schwarz had around 13,800 employees worldwide.
The overall good consolidated financial statements show that Rohde & Schwarz is well positioned in markets with strong growth potential. The group's diversification ensures greater security and stability.
Broad test and measurement portfolio drives innovation and transformation
The wireless communications T&M market declined, especially on the production side, due to the global economic situation. In this challenging environment, the diversified Rohde & Schwarz T&M portfolio proved highly advantageous and ensured a robust fiscal year. Customers in the aerospace & defense market continued to invest in the group's state-of-the-art T&M technology. The automotive industry is driving the transition to electromobility and the development of autonomous vehicles. This, in turn, is generating high demand for the broad range of solutions that Rohde & Schwarz offers for demanding measurement tasks. The group also further expanded its established position in the Industrial Electronics, Components, Research & Universities market segment.
Science and research are already working on 6G, the next wireless communications generation. Rohde & Schwarz has been involved in these efforts from the very start by participating in various programs and initiatives. At Mobile World Congress 2023 in Barcelona, the group teamed up with NVIDIA to give the industry's first hardware-in-the-loop demonstration of a neural receiver. This has laid the foundation for the integration of artificial intelligence (AI) and machine learning (ML) in the future 6G technology.
Partner for shaping the digital sovereignty of countries and industry
The ongoing geopolitical deelopments have led governments and industry to focus more strongly on digital and technological sovereignty. This paradigm shift is also affecting the business of Rohde & Schwarz. With its secure communications and reconnaissance solutions, the technology group was able to win strategically important projects with authorities and customers in the government sector in the reporting period.
In addition, by acquiring Schönhofer Sales & Engineering GmbH (SSE), the group successfully invested in expertise for key technologies such as big data analytics and AI. In August 2023, Rohde & Schwarz and SSE were commissioned, along with other partners, to develop the AI backbone for the European Future Combat Air System (FCAS).
Demand for network and security technology is increasing in both private and public sectors. The trend toward cloud applications and remote work continued. In the government sector, digitalization is gaining further momentum. Rohde & Schwarz, a key supplier in Germany with solutions to ensure digital sovereignty, is already benefiting from this trend. The group subsidiary LANCOM Systems in particular secured important projects and again achieved profitable growth.
Solutions for safe and smooth air traffic
Global air traffic is almost back at pre-pandemic levels. This increased worldwide demand for security scanners. After having been placed on the Transportation Security Administration's (TSA) Qualified Products List in the USA, the R&S QPS201 security scanner is now being used to carry out smooth security checks at the first US airports. In addition, the R&S QPS Walk2000 – the world's first 360° walk-through security scanner – is currently being tested at Frankfurt Airport.
Rohde & Schwarz also achieved successes in the air traffic control (ATC) sector. Together with DFS Deutsche Flugsicherung GmbH, the German air navigation service provider, the group completed a nationwide radio modernization program with around 4000 ATC radios at over 100 radio sites. With its tried-and-tested turnkey solution, Rohde & Schwarz ensures safe and efficient airspace operations.
Investments in own vertical integration and key technologies
Supply chains that were strained due to the pandemic stabilized somewhat in the reporting period. In the past few years, the group's high degree of vertical integration once again proved its worth. The Rohde & Schwarz production plants ensure flexibility, dependability and reliable supply capability. The group reaffirmed its vertical integration strategy in the 2022/2023 fiscal year. In February, a groundbreaking ceremony took place at the Memmingen site for a state-of-the-art technology and production center with 18,000 square meters of floor space.
For 90 years, Rohde & Schwarz has lived a tradition of innovation. Research, development and production take place primarily in Germany. The group is stepping up investment in the development and utilization of new technologies involving frequencies above 100 GHz, 6G, AI and microelectronics. This ensures that Rohde & Schwarz remains relevant for its customers in a highly dynamic competitive environment and can expand its leading position.
The group is currently participating in a microelectronics and communications technologies project funded by the European Commission (IPCEI ME/CT). Rohde & Schwarz is thereby helping to ensure Germany and Europe's ability to shape key technologies.
Resource conservation and systematic use of renewable energy sources
As a privately owned company, Rohde & Schwarz is deeply committed to taking into account social and environmental effects in its economic activities. Sustainable business activities have always been at the heart of its corporate strategy and will remain so in the future.
Rohde & Schwarz aims to achieve the 1.5 °C climate protection target at selected group locations by 2030 without buying any offset certificates. To enable the energy transition, it is implementing sustainable product design and resource-conserving energy supply concepts. The group is actively saving energy and carbon emissions by using photovoltaic systems on its own buildings, heat pumps to heat and cool buildings and green electrical power.
In 2023, the Bavarian state government awarded Rohde & Schwarz the Gold Certificate of the Bavarian Environmental and Climate Pact for its longstanding commitment to environmental and climate protection.
SOURCE Rohde & Schwarz