First Quarter 2012
· Net Sales of SEK 76.6 million (66.6) corresponding to a growth of 15.0% compared to the same period previous year. The growth rate in comparable currencies amounts to 16.8%.
· Operating earnings of SEK 5.2 million (2.9), corresponding to an operating margin of 6.7% (4.3).
· Earnings per share of SEK 0.01 (0.01).
· Total cash flow of SEK -11.0 million (-19.5).
Good Revenue Growth of 15% the first quarter
Revenues reached 77 MSEK (67 MSEK) which marks a 15 % growth year-over-year. In comparable currencies the revenue increase was 17 %. Most financial ratios improved. The gross margin reached 61.1 % (57.8), and operating earnings as well as the operating margin improved compared with the same period previous year. The cash flow was negative 11 MSEK (-20), mainly due to continued inventory build-up for long lead time components and trade receivables.
First quarter showed a good mix between strong repeat business from larger existing customers, some new customers and a new important media contribution network for Swisscom Broadcast AG, covering many significant sport arenas in Switzerland. Again a large portion of our business 80 % (63) was generated in the Broadcast and Media Network business area (BMN), we also had good repeat business for the Digital Terrestrial TV area (DTT). As I have stated many times before the revenues generated through our partner network will vary over time and for Q1 it represented 40 % (62). We booked business for several large broadcasters and media service providers relating to the major sport event in London this summer. We will deliver the Nimbra MSR platform and transport video and data for many leading service providers and broadcasters from the media center in London. In conjunction with the Olympic Games the Nimbra MSR platform will also be used for specific remote production set ups. It is our aim to drive the trend towards remote production and workflow for increased efficiency, quality of service and reduced costs for live sports production.
Net Insight also won the prestigious SCTE 2012 Technological Innovation Award (Society for Broadband Professionals). Net Insight was selected for our service aware media network solution as the Best Broadband Network Transmission Solution 2012.
In summary the year has started off in a positive way.
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 4, 2012 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 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
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