Net Insight AB : Interim Report January – June 2012
Second Quarter 2012
·Net Sales of SEK 75.0 million (72.2) corresponding to a growth of 3.9% compared to the same period previous year. The growth rate in comparable currencies amounts to -1.4%. · Operating earnings of SEK 3.4 million (8.3), corresponding to an operating margin of 4.6% (11.5). · Earnings per share of SEK 0.03 (0.02). ·Total cash flow of SEK 14.6 million (-25.8).
January – June 2012
· Net sales of SEK 151.7 million (138.9) corresponding to a growth of 9.2% compared with the same period previous year. The growth rate in comparable currencies amounts to 7.3%.
· Operating earnings of SEK 8.6 million (11.2), corresponding to an operating margin of 5.7% (8.1).
·Earnings per share of SEK 0.05 (0.04).
·Total cash flow of SEK 3.6 million (-45.3).
Revenue growth of four percent in the second quarter
Revenues were up 4% compared with the same period in the previous year, currency adjusted the change was minus 1%. For the first half of the year our revenue growth was 9% and currency adjusted 7 %. The gross margin remains strong and reached 61 % (61.3) for the quarter. Operating earnings reached 3 MSEK compared with 8 MSEK in the previous year. Increased operating expenses to capture future growth and in line with earlier communications, is the main reason for the lower profitability. Cash flow during the quarter was strong and reached 15 MSEK compared with a negative 26 MSEK in second quarter the previous year. We continue to have relatively high trade receivables but the credit quality of our customer base mean a low level of risk in trade receivables.
Partners continued to generate good business during the quarter but the amount of direct business was higher than in recent periods. As stated earlier the amount of direct business will vary over time but the strong trend of doing business through our partner network remains. We also saw a large amount of repeat business with existing customers during the quarter. In line with our strategy, a major part of our business today, more than 70%, is coming from service providers i.e. network owners selling transport services. We have a special focus on fast growing economies and this time Asia represented 16 % of total revenues. The revenue split between the segments this quarter was 81% in the Broadcast and Media Networks and 19 % in DTT. We sold equipment for upgrades to DTT networks in e.g. Northern Europe and Latin America.
One of our major marketing efforts took place in the quarter when we were present at the NAB trade show 2012 announcing new partnerships and products. We started a new partnership to offer more complete wide as well as local area network solutions for the broadcast and studio environments. A new product in the Nimbra 300 series was launched, the Nimbra 310, that offers a cost effective and high performing MSR with guaranteed quality of service. This means a further expansion of our product portfolio to better address the access market.
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 July 20, 2012 at 08.45 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 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 150 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, visitwww.netinsight.net
Interim report January – June 2012
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Source: Net Insight AB via Thomson Reuters ONE