Rohde and Schwarz Shows Steady Growth in 2022-23 Fiscal Year Amidst Difficult Global Conditions

The 2022-2023 fiscal year proved to be a formidable test for businesses globally, marked by geopolitical uncertainty and economic turbulence. However, technology powerhouse Rohde & Schwarz emerged victorious, reporting an exceptional order intake exceeding EUR billion and revenue surge to EUR 1.78 billion, demonstrating resilience and strategic prowess. Diversification emerged as a key strength, providing the company with stability and security amid challenging market conditions. The impressive financial statements affirm Rohde & Schwarz's solid position in markets with significant growth potential. The company's broad test and measurement portfolio drives innovation and transformation.

The wireless communications market declined, especially on the production side, due to the global economic situation. In this challenging environment, the diversified Rohde & Schwarz portfolio proved highly advantageous and ensured a robust fiscal year. Customers in the aerospace and defense markets continued to invest in the group's state-of-the-art 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, and 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 future 6G technology.

The ongoing geopolitical developments 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 Sch nhofer 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 the private and public sectors. The trend toward cloud applications and remote work continued. In the government sector, digitalization is gaining further momentum. Rohde & Schwarz, the 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.

Global air traffic is almost back at pre-pandemic levels. This increased the worldwide demand for security scanners. After having been placed on the Transportation Security Administration's (TSA) Qualified Products List in the USA, the & QPS201 security scanner is now being used to carry out smooth security checks at the first US airports. In addition, the & 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.

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 the 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 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's and Europe's ability to shape key technologies.

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-degree 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.

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Questions and Answers

1. What were the financial results of Rohde & Schwarz in the 2022/23 fiscal year?

Rohde & Schwarz reported an exceptional order intake exceeding EUR billion and a revenue surge to EUR 1.78 billion.

2. How did diversification help Rohde & Schwarz in a challenging market?

Diversification emerged as a key strength, providing the company with stability and security amid challenging market conditions.

3. What industries invested in Rohde & Schwarz's state-of-the-art technology?

Customers in the aerospace and defense markets, as well as the automotive industry, invested in Rohde & Schwarz's technology.

4. What future technology is Rohde & Schwarz involved in?

Rohde & Schwarz is involved in the development of 6G wireless communications technology.

5. How did Rohde & Schwarz secure strategic projects in the government sector?

Rohde & Schwarz's secure communications and reconnaissance solutions helped the company win strategically important projects in the government sector.

6. What is the trend in network and security technology?

Demand for network and security technology is increasing in both the private and public sectors.

7. What achievements did Rohde & Schwarz have in the air traffic control sector?

Rohde & Schwarz completed a nationwide radio modernization program in collaboration with DFS Deutsche Flugsicherung GmbH.

8. How does Rohde & Schwarz ensure its supply chain stability?

Rohde & Schwarz has a high degree of vertical integration and reliable production plants to ensure supply chain stability.

9. What are Rohde & Schwarz's investment areas?

Rohde & Schwarz is investing in new technologies involving frequencies above 100 GHz, 6G, AI, and microelectronics.

10. How is Rohde & Schwarz committed to sustainability?

Rohde & Schwarz implements sustainable product design and resource-conserving energy supply concepts to reduce its environmental impact.

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Test & Measurement, Financial Results, Rohde & Schwarz