Interim report, January-June 2008
Net Insight AB (publ), Corporate Reg. No. 556533-4397
January - June 2008
* Net sales increased by 27% to SEK 137.9 million (108.9).
* Operating earnings improved to SEK 20.1 million (8.1)
* Net income improved to SEK 22.0 million (8.6).
* Net profit margin was 16.0% (7.9)
* Gross margin at 70.2% is affected by reclassification of
support and training expenses. Adjusted for this item gross margin
was 72.1% (70.6).
* Software and support revenue increased to SEK 40.8 million
(25.0).
* Total cash flow of SEK -9.3 million (12.3).
* Earnings per share amounted to SEK 0.06 (0.02).
Second quarter 2008
* Net sales increased by 32% to SEK 73.2 million (55.5).
* Operating earnings improved to SEK 14.5 million (3.3)
* Net income improved to SEK 15.8 million (3.5).
* Gross margin at 71.3% is affected by reclassification of
support and training expenses. Adjusted for this item gross margin
was 73.2% (70.7).
* Software and support revenue increased to SEK 26.1 million
(12.4).
* Total cash flow amounted to SEK 13.2 million (4.0).
* Earnings per share amounted to SEK 0.04 (0.01).
The full report is available for download below.
The positive growth trend continued during the second quarter 2008,
and Net Insight is able to record a healthy profit margin, our
highest quarterly revenues and our strongest overall financial
performance so far.
Europe continues to generate the largest revenues but both the Asia
Pacific region and North America represent strong growth during the
first six months.
We continue to win new customers in our core market segments and have
built a strong customer base that generates a substantial volume of
repeat business.
As previously communicated the Nimbra equipment was delivered and
installed under the contract with BOB for the Beijing Olympics. As
communicated in the press, with 1 000 cameras at the different
Olympic venues and the transport platform handling the unprecedented
volume of HDTV contribution to the International Broadcasting Center,
ultimately reaching TV viewers globally, this is the world's largest
and most mission critical TV event.
The need for robust, high capacity, high quality and cost efficient
video transmission networks continues to grow practically everywhere
in the world.
Asia Pacific represents a fast growing market, now also for Net
Insight. We are committed to the Asia Pacific market and continue to
gain significant momentum with new business and business
opportunities in the region such as the Thai telecom operator TOT.
Net Insight's Nimbra platform continues to prove its competitiveness
in the important segment for Digital Terrestrial TV networks (DTT).
The Irish operator RTÉ NL selected Net Insight to supply equipment
for a national DTT network that will also implement our unique Time
Transfer feature for GPS-free time synchronization. Many other DTT
projects are being actively pursued. We were established on a new
market in Europe when Net Insight was selected to supply Nimbra
equipment to a national intra-city fiber backbone.
Our market momentum continues in North America where all of our
recently won major customers have expanded their media transport
networks during the quarter. In May, we won a new important order
with a large North American telecom operator for a multiservice
transport network to serve a large global media group. Our Nimbra
platform will ensure the transmission of high-quality video in a
secure and highly efficient manner also allowing our customer to
converge everything from media services to Ethernet services on a
single platform.
Our Nimbra platform guarantees exceptional quality and efficiency and
our world-class customers show confidence in the Nimbra platform. All
in all, I repeat that this situation is very encouraging for the
future.
Stockholm, 28 August 2008
Fredrik Trägårdh
Chief Executive Officer
For more information, please contact:
Fredrik Trägårdh, CEO Net Insight AB
Tel.: +46 (0) 8-685 04 00, email: fredrik.tragardh@netinsight.net
Lars Kevsjö, CFO Net Insight AB
Tel.: +46 (0) 8-685 04 00, email: lars.kevsjo@netinsight.net
Net Insight AB
Net Insight AB (publ)Box 42093
126 14 Stockholm
Tel +46 (0) 8 685 04 00
www.netinsight.net
Corporate Reg. No. 556533-4397
