Net Insight AB [publ] Corporate Reg. No 556533-4397
Second Quarter 2011
· Net Sales of SEK 72.2 million (71.5) corresponding to a growth of 1.0%
compared with the same period previous year. The growth rate in comparable
currencies amounts to 12%.
· Operating earnings of SEK 8.3 million (11.9), corresponding to an operating
margin of 11.5% (16.6).
· Earnings per share of SEK 0.02 (0.02).
· Total cash flow of SEK -25.8 million (3.3) due to temporary changes in working
capital.
January - June 2011
· Net sales of SEK 138.9 million (132.0) corresponding to a growth of 5.2%
compared with the same period previous year. The growth rate in comparable
currencies amounts to 11%.
· Operating earnings of SEK 11.2 million (18.1), corresponding to an operating
margin of 8.1% (13.7).
·Earnings per share of SEK 0.04 (0.19).
·Total cash flow of SEK -45.3 million (56.4).
MODEST GROWTH BUT CONTINUED GEOGRAPHICAL EXPANSION
Revenues reported in the second quarter of 2011 were SEK 72.2 million and
slightly above the same period in the previous year. We are pleased to have won
some very significant contracts in the quarter but as a company we remain
dependent on certain key projects to materialize in order to achieve significant
revenue growth.
The reported gross margin for the second quarter is 61.3 % compared with 66.4 %
for the same period in the previous year. The cash flow during the second
quarter was negative by SEK 25.8 million mainly due to changes in working
capital and higher inventory levels to hedge certain long lead time components
for production. The negative cash flow is not a result of any change in bad
debts. The revenue growth the second quarter amounted to 1.0 % compared with the
same period previous year. In fixed currencies the revenue growth amounted
to 12 %.
The second quarter showed a steady repeat business with existing customers and
two significant contracts from two new customers, one in the US and one new
important cable-TV customer in Germany. The Americas and APAC have improved
slightly and EMEA was lower than expected. We continue our strategic direction
to expand geographically. Net Insight entered several new countries during the
quarter and opened up new markets through our partners in countries such as
Turkey, Greece, Egypt, Peru and Colombia.
Our partner network increased with eight new partners to a total of 48 partners.
Our indirect sales reached 33 % of total revenues for the quarter and for the
first six months indirect sales reached 48 %. We have now established a strong
partner network in all target markets and going forward our focus is to leverage
these partnerships to achieve accelerated growth.
The operating earnings for the second quarter and the first half of 2011 was SEK
8.3 million and SEK 11.2 million respectively, compared with SEK 11.9 million
and SEK 18.1 million for the same period in the previous year. In summary,
revenues were higher the second quarter and for the first half of 2011, but we
were not able to compensate for the foreign exchange effects on the bottom line.
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, 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, visitwww.netinsight.net
Interim report January - June 2011:
http://hugin.info/130084/R/1532105/466464pdf
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(i) the releases contained herein are protected by copyright and
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originality of the information contained therein.
Source: Net Insight AB via Thomson Reuters ONE
[HUG#1532105] 
