July-September 2012
* Sales were SEK 254.2 (273.8) m, corresponding to a decrease of 7.1% and
6.2% adjusted for exchange rate fluctuations.
* Operating profit was SEK 50.1 (69.4) m and operating margin was 19.7%
(25.3%).
* Net profit was SEK 38.0 (53.5) m for the quarter.
* Earnings per share after dilution were SEK 1.37 (1.94).
* Cash flow from operating activities was SEK 74.6 (31.4) m.
* The second-largest mobile operator in Austria, T-Mobile Austria, has
selected Transmode's WDM solution to increase the capacity of its nationwide
fiber network.
January-September 2012
* Sales were SEK 759.7 (670.5) m, corresponding to an increase of 13.3% and
12.6% adjusted for exchange rate fluctuations.
* Operating profit was SEK 133.6 (104.3) m and operating margin was 17.6%
(15.6%). Adjusted operating profit for the first nine months of 2011 was SEK
123.0 m and adjusted operating margin was 18.4%. The adjustment was for
expenses of SEK 18.7 m relating to Transmode's IPO on NASDAQ OMX Stockholm.
* Net profit was SEK 104.0 (82.1) m.
* Earnings per share after dilution were SEK 3.74 (3.02).
* Cash flow from operating activities was SEK 105.9 (50.9) m.
CEO's Statement: Another highly profitable quarter for Transmode
"The quarter's operating profit of SEK 50 m equates to an operating margin of
nearly 20%. This very positive operating profit is driven by continued high
sales, a gross margin of just over 49% and low expenses. Sales in the third
quarter of the year were SEK 254 m. In a comparison with the corresponding
quarter of the previous year, it is worth noting that the third quarter 2011
included items such as large deliveries on the contract reported with Virgin
Media on Mobile Backhaul. Apart from continued high operating margins, I'm
especially satisfied with sales in the Americas continuing to increase, our
strong cash flow and that we, despite unfavorable exchange rates, retained our
gross margin.
Our market is driven by the underlying increase in data traffic driven by video
applications, cloud services and mobile broadband. Accordingly, there is a
continued need for investments in equipment that increases the capacity of
optical fiber networks. At present, there is nothing to suggest that this
underlying driver is weakening. But due to macroeconomic concerns, primarily in
Europe, we did note some slowdown in the market during the quarter and
accordingly, we consider that sales in the final quarter of the year will be in
line with the corresponding quarter of the previous year. To summarize, we are
pleased by the very positive profits of the first three quarters of the year,
and despite some slowdown in the market, we're maintaining confidence in our
growth strategy with its focus on geographical expansion, innovative products
and operational efficiency."
Karl Thedéen, CEO, Transmode
The Interim Report is attached and available via the link at the end of this
press release.
Invitation to press and analysts conference
Transmode Holding AB will hold a conference call (in English) for the media,
investors and analysts on 23 October at 09:00 CET where CEO Karl Thedéen, and
CFO Tomas Kihlstrand, will present and comment on Transmode's Interim Report.
To access the telephone conference, please call UK +44 (0) 808 109 0700
alternatively, call the Swedish number +46 (0) 20 089 63 77 and state that you
are joining the "Transmode conference call" a few minutes before the scheduled
start. The conference and presentation can also be followed live online, see
Transmode's homepage: http://www.transmode.com/en/interim-reports/interim-
reports
The Interim Report along with historical quarterly data is also available on the
Transmode website at www.transmode.com.
The information in this announcement is required to be disclosed by Transmode
Holding AB under the Swedish Securities Markets Act (Sw. lagen om
värdepappersmarknaden). This information was released for publication at 08:00
AM CET on 23 October,2012.
For more information please contact:
Ola Elmeland
Vice President Marketing & Communications
Transmode Systems AB
Telephone: +46 8 506 882 71
Email: ola.elmeland@transmode.com
About Transmode
Transmode is a global provider of packet-optical networking solutions that
enable fixed line and mobile network operators to cost effectively address the
capacity needs created by the rapid growth in video and data traffic. These
solutions are important building blocks in next-generation high-speed optical
networks that support services such as broadband backhaul, mobile data backhaul,
video delivery services and cloud computing. Transmode's solutions are based on
Wavelength Division Multiplexing (WDM) and packet optical transport
technologies, which are designed to increase the capacity, flexibility and
functionality of optical metro core and metro access networks. Transmode's
Intelligent WDM (iWDM(TM)) approach gives key advantages to customers, such as
ultra-low latency, low power consumption and innovative network design.
Transmode is headquartered in Stockholm, Sweden and is listed on the NASDAQ OMX
Stockholm Exchange (TRMO). Since 2000 the company has installed more than
30,000 systems for over 400 fixed and mobile network operators, service
providers, large enterprises and public institutions in over 40 countries across
the globe.
For additional information about Transmode, please visit www.transmode.com.
[HUG#1651292]
