Net Insight AB [publ] Corporate Reg. No 556533-4397
Third Quarter 2011
· Net Sales of SEK 75.4 million (67.6) corresponding to a growth of 11.5 % compared with the same period previous year. The growth rate in comparable currencies amounts to 2 %.
· Operating earnings of SEK 15.5 million (9.2), corresponding to an operating margin of 20.6 % (13.7).
· Earnings per share of SEK 0.04 (0.03).
· Total cash flow of SEK 4.8 million (-4.2).
January - September 2011
· Net sales of SEK 214.2 million (199.6) corresponding to a growth of 7.3 % compared with the same period previous year. The growth rate in comparable currencies amounts to 8 %.
· Operating earnings of SEK 26.7 million (27.4), corresponding to an operating margin of 12.5 % (13.7).
· Earnings per share of SEK 0.07 (0.21), decrease is related to a positive one time effect in 2010.
· Total cash flow of SEK -40.5 million (52.3), the cash flow in 2010 included a SEK 60 million positive one time effect.
Our third quarter revenue reached SEK 75.4 million (67.6) which is 11 % above same quarter previous year. Currency adjusted the revenue growth amounted to 2%. The gross margin was strong at 65.8 % (61.1) and also the operating margin was higher and reached 20,6 % (13,7). Stronger margins and improved finance net produced a net income before tax of SEK 17 million (9.6). The increased profitability is driven by good underlying margins, cost control and a positive currency effect of SEK 2.4 million. The cash flow was positive and our net cash position increased by SEK 4.8 million to SEK 195.4 million.
On top of steady and profitable repeat business during the quarter we also had some important new customer wins. We won a contract exceeding SEK 20 million with a member of the German ARD Group of Broadcasters for a strategically important extension of their contribution network. Following a successful event related project in Asia we secured a contract for the build out of a contribution network with a major operator in China. Via a new partner in Italy we won a project with Telecom Italia Media Broadcasting (TIMB), which is a major terrestrial television network operator in Italy, including our video compression solution.
Our EMEA region has contributed with 69 % (84) of the total revenues. The Americas contributed 22 % (10) and APAC 9 % (6). Both Americas and APAC are performing better than last year which is a step in the right direction.
Our partner network is a strategic pillar for our market expansion and an increasingly important business generator. Our focus going forward is increased revenue generated per partner before possibly adding new ones. Indirect sales through partners will vary over time and during the quarter reached the highest level so far 65 % (46).
We have recently expanded our product portfolio. With the new product releases we strengthen our access portfolio so that customers can use the Nimbra platform from the core all the way to the network access. In front of customers it is important to have a sufficiently large product span and we have now increased that span significantly and thereby expanded our addressable market. At the same time this is a new attractive offering and facilitates new entry point business for our partners.
Net Insight has also been awarded "Best HDTV Technology Project" by Cable and Satellite International for our successful Digital Terrestrial (DVB-T2) project with Teracom in Sweden.
As regards the period January to September revenues, gross margin and net income are up compared with previous year.
Net Insight AB discloses the information provided herein pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on October 25, 2011 at 08.30 am CET.
About Net Insight
Net Insight delivers the world's most efficient and scalable transport solution for Broadcast and IP Media, Digital Terrestrial TV, Mobile TV and IPTV/CATV networks.
Net Insight products truly deliver 100 percent Quality of Service with three times improvement in utilization of bandwidth for a converged transport infrastructure. Net Insights Nimbra(TM) platform is the industry solution for video, voice and data, reducing operational costs by 50 percent and enhancing competitiveness in delivery of existing and new media services.
More than 130 world class customers run mission critical video services over Net Insight products in over 50 countries. Net Insight is quoted on the NASDAQ OMX, Stockholm.
For more information, visit www.netinsight.net