Net Insight AB [publ] Corporate Reg. No 556533-4397
First Quarter 2013
· Net Sales of SEK 62.4 million (76.6) corresponding to a decrease of 18.6% compared to the same period previous year. The decrease in comparable currencies amounts to 14.0%.
· Operating earnings of SEK -5.0 million (5.2), corresponding to an operating margin of -8.0% (6.7).
· Earnings per share of SEK -0.01 (0.01).
· Total cash flow of SEK -7.6 million (-11.0).
Comment by CEO Fredrik Trägårdh:
"Our repeat business was stable during the first quarter. We also won further DTT business in Western Europe, Eastern Europe and in Latin America."
STABLE REPEAT BUSINESS BUT A LACK OF LARGER ORDERS
Unlike the first quarter 2012 we invoiced no large projects in the first quarter of this year. Revenues reached 62,4 MSEK (76,6 MSEK). In comparable currencies that means revenues 14 % below the same period in previous year. Operating earnings were negative -5,0 MSEK (5,2) and the cash flow was negative -7,6 MSEK (-11,0).
The current market situation, explained in our annual report and in previous interim reports, with project delays and declining average order size, is still affecting our revenues negatively. The first quarter was again affected by project slippages in the EMEA region, causing deviation from previous year. We continued to win a larger number of projects but for the moment, at lower revenues per project. At the same time as I am disappointed with the level of revenues and our financial performance during the last three quarters, I do see a large number of business opportunities that would change that picture.
Our repeat business was stable during the first quarter. We also won further DTT business in Western Europe, Eastern Europe and in Latin America. Revenues are down at the moment but the gross margin remains strong at 55,8 % (61,1). The decrease in the gross margin compared with previous year, is only a function of increased depreciations on R&D, reported under cost of goods sold and therefore affecting the gross margin. The underlying project margin (the gross margin and adding back R&D depreciation) remains very strong at over 70%.
During the NAB exhibition in Las Vegas in April we demonstrated new products e.g. the Nimbra VA 210 which attracted significant interest. The Nimbra VA 210 is a product that significantly enhances the picture quality and thereby the user experience for video transported over the public internet.
Looking ahead, we now have new products coming to market that will help us and our partners do more business with existing as well as new customers.
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 May 3, 2013 at 08.45 CET.
Net Insight delivers the world's most efficient and scalable transport solution for Broadcast and IP Media, Digital Terrestrial 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 Insight's 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 175 world class customers run mission critical video services over Net Insight products in over 60 countries. Net Insight is quoted on the NASDAQ OMX, Stockholm.