Net Insight Interim Report 1 January - 31 March 2000
SIGNIFICANT EVENTS DURING THE PERIOD
· Video-conference using "technology of tomorrow"
In January 2000, using DTM equipment from Net Insight, a videoconference was conducted for the first time via broadband with perfect studio quality in real time (270 Mbps), transmitting video, data and telephony in parallel. The videoconference was transmitted via opto-fiber between the AGM of Svenska Stadsnätsföreningen [the Swedish city network association] in Gothenburg and a studio in Stockholm. Several demonstrations to various branches of industry have been conducted during the period.
· Directed share issue
A directed share issue was carried out in January/February 2000 for a total of SEK 230 million to Brummer & Partners Zenith hedge fund, the Fourth AP fund and SPP Kapitalförvaltning. This infusion of capital will be used for continued product development, commercialization of the company's products and the creation of an international marketing organization. Liquid assets per March 31 amounted to SEK 312 million.
· Options scheme
In March, the board decided to recommend the AGM to introduce a staff options scheme oriented to all staff categories running to a total of 322 000 staff options. The options are linked to the appointment and will be issued free of charge with a maximum duration of seven years. The board also decided to recommend that the AGM issue promissory notes linked to 435,000 separable option rights for subscription to shares for fulfillment of the staff option scheme. This scheme corresponds to a dilution of the total number of shares by around 5%, and around 3% of the total number of votes.
· Promotion trip to the USA
Over a two-week period in February, Net Insight management undertook a comprehensive information trip to the USA, which included a large number of presentations to industry analysts and the technical trade press.
During the period, 3 new patents were obtained bringing the total number of patents and patent applications at the end of the period up to 38.
SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD
· Cooperation agreement with ABB AG in Austria
In April, Net Insight signed an agreement with ABB AG in Austria covering the sale and implementation of Net Insight's DTM products to ABB AG's customers in Austria and Eastern Europe.
Net Insight's partner, Fiberdata and RegNet/Norrsken - which link together 1.6 million inhabitants of seven mid-Sweden counties - signed a frame agreement in April, regarding giving 40 Swedish areas access to broadband using DTM technology.
In April, an agreement was concluded with Metrocom, one of the leading opto-fiber operators in St Petersburg, Russia, regarding the purchase of Nimbra switches for use in Metrocom's city network. Initially, the switches will be used for telephony and data services for a major bank, but eventually usage will be extended to include the domestic market in St Petersburg with a population of more than 6 million.
Millennium Communication Networks AG (MCN), one of Austria's fastest growing network operators, signed an agreement in April regarding the supply of DTM switches for commercial implementation. This delivery is part of the frame agreement concluded between Net Insight and MCN.
· The Twintin chip ready
The silicon chip Twintin was launched concurrently in Sweden and the USA on 26 April. In Stockholm, a well-attended press and analyst conference was held. The Twintin chip was developed by Net Insight within the framework of a cooperation agreement with Toshiba Electronics. The Twintin chip contains a complete DTM switch and will be the "engine" in products that are in the pipeline. Twintin will also be sold separately, which will help other players to get going with DTM-related production, and thereby contribute to increased and quicker acceptance of DTM technology on the market.
· Lars Berg and Bo Dimert new board members
At the AGM on 26 April, Lars Berg and Bo Dimert were elected as new regular board members. Lars Berg is head of telecom for Mannesmann, Germany, previously Ericsson and Telia. Bo Dimert was most recently head of Ericsson in the USA and prior to that held posts at IBM and Digital Equipment.
· Decisions at the AGM
The AGM adopted the board's proposal for the staff options scheme and decided on a (5:1) split of Net Insight's B-shares. The split will be put into effect 2 to 3 weeks after the date of the AGM.
The need for greater and better network capacity for the Internet, broadband services, mobile communications and network solutions has continued to increase, which creates interest and a demand for new services and developed products. This gives Net Insight a very good market position, since the company's products can easily keep up with and grow at the same rate as developments in fiber-optics and the wireless Internet market.
Net Insight's DTM technology creates the criteria for transferring large volumes of information at a high level of quality without any bottlenecks. By fully utilizing the network capacity, operators can widen their business opportunities by offering features such as IP-based digital TV, video-on-demand, telephony games and real-time games via the Internet.
The number of employees has increased during the period from 76 to 90.
REVENUE AND COSTS
The company's sales revenue for the period amounted to SEK 0.3 million. Group costs for the period amounted to SEK 46.9 million.
INVESTMENTS IN FIXED ASSETS
Investments in instruments, equipment and improvements to premises for the first quarter amounted to SEK 0.5 million.
CASH POSITION AND FUNDING
Group liquid assets in the form of cash and bank balances amounted to SEK 312 million on 31 March 2000.
FORTHCOMING REPORTS FROM NET INSIGHT
Interim report January - June 21-08-2000
Interim report January - September 10-31-2000
Stockholm, 8 May 2000
Chief Executive Officer
This interim report has not been subject to any auditing by the Company auditors.
The full report including tables can be downloaded from the enclosed link.
Interim Report 1 January - 31 March 2000