Interim report January – September 2010
NET INSIGHT Interim report January - September 2010 Net Insight AB [publ] Corporate Reg. No 556533-4397 Third Quarter 2010 · Net Sales of SEK 67.6 million (57.5) corresponding to a QoQ growth of 18%. The growth rate in comparable currencies amount to 33%. · Operating earnings of SEK 9.2 million (10.5), corresponding to an operating margin of 13.7% (18.2). · Earnings per share of SEK 0.03 (0.01). · Total cash flow of SEK -4.2 million (17.6). January - September 2010 · Net sales of SEK 199.6 million (180.6), corresponding to a YoY growth of 11%. The growth rate in comparable currencies amount to 24%. · Operating earnings of SEK 27.4 million (31.8), corresponding to an operating margin of 13.7% (17.6). · Earnings per share of SEK 0.21 (0.05). · Total cash flow of SEK 52.3 million (4.0). Good business momentum but net sales and gross margin affected by strengthened Swedish krona In the third quarter our revenues are 18 percent above the same quarter 2009 and Earnings before tax also exceeded that of last year. Revenues amounted to 68 MSEK and the gross margin was 70% excluding depreciation of capitalized R&D. This time it is worth noting the negative impact on revenues and the gross margin due to the strengthened Swedish Krona. Despite the negative currency effect, business and financial performance are stable. During the third quarter, in line with our market expansion strategy, indirect sales exceeded 40% of total revenues for the first time. China is a market with upcoming opportunities where we have already landed significant business references and during the quarter we added a large new customer in China. Whereas the satellite operators are often viewed as competitors to terrestrial networks, the trend that satellite operators complement their network infrastructure with terrestrial transport is clear. During the quarter we continued to win business in this growing segment. We also landed an order for a network build-out for a leading European broadcaster and a contract with a large Telco in the US that will offer contribution services to a large North American broadcaster. Net Insight won yet another significant and strategically important DTT project this quarter, the new nationwide media network for Emitel in Poland. For this project Net Insight joined forces with Ericsson. We are on a good path to deliver increased revenues 2010 in comparison to the previous year. The full report can be found below. 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 22, 2010 at 08.30 am CET. Stockholm, October 22, 2010 Fredrik Trägårdh CEO [HUG#1454177] Interim report January - September 2010: http://hugin.info/130084/R/1454177/394508pdf This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Net Insight AB via Thomson Reuters ONE
