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]
