Stockholm, Sweden - 29 April 2015
January-March 2015
- Sales were SEK 289.3 (231.3) m, an increase of 25.1%, or 11.0% adjusted for exchange rate fluctuations.
- Operating profit was SEK 47.1(21.5) m, corresponding to an operating margin of 16.3% (9.3).
- Net profit was SEK 37.8 (18.6) m.
- Basic and diluted earnings per share were SEK 1.36 (0.67).
- Cash flow from operating activities was SEK 43.1 (1.6) m.
A strong start to 2015 - back in profitable growth
The positive progress of the final quarter 2014 continued in the first quarter of the year. Sales increased by 25% year on year to SEK 289 m. Operating profit was SEK 47 m, equating to an operating margin of 16%, driven by a high gross margin of 52%. I'm very pleased that we're able to report such high growth and profitability levels again.
Our new 100G products continue to gain very positive responses from both existing and new customers. Liberty Global, the world's largest international cable TV operator, has started to build 100G networks across Europe using Transmode's TM-Series platform. The features of these products such as low energy consumption, size and pricing, open up new business opportunities including solutions for Data Center Interconnect (DCI), which we saw several examples of in the quarter. Our strategic initiative on increased partner sales and a sharper focus on service sales has paid off, and indicates continued stable progress in the quarter.
The Americas reported a very strong sales increase of 59%, with good activity in North and South America, and increased sales from existing and new customers. Our initiative and strategic change of our operations in the Americas, which commenced in late-2013, is paying off very positively, and we believe this region will keep generating high growth in 2015.
EMEA reported a sales increase of 20%, mainly driven by increased sales of Data Center Interconnect (DCI) products to network operators and enterprise customers. Several of our largest customers in EMEA have a somewhat lower rate of investment, but we think that most of them will be in growth for the full year 2015.
APAC remains fairly project dependent, but did achieve growth of 18%, mainly explained by positive progress in Southeast Asia. Our initiative on new partners in APAC is continuing to produce positive results.
Based on this good profitability, we're continuing to make selective investments in product development and marketing to create the potential for continued profitable growth.
I'm pleased that we're back in high growth, and have reported profits for this quarter consistent with some of our best quarters. I'm reiterating my positive view of our market, driven by the brisk underlying growth of data traffic in metro networks, as corroborated by progress in recent quarters.
Karl Thedéen
Chief Executive Officer
The Interim Report is attached and available via the link at the end of this press release.
The information in this announcement is required to be disclosed by Transmode AB under the Swedish Securities Markets Act (Sw. lagen om värdepappersmarknaden). This information was released for publication at 8.00 a.m. on 29 April 2015.
This is a translation of the Swedish original. In case of any inconsistency between the Swedish and English version, the Swedish version shall prevail.
Invitation to press and analysts' conference call
Transmode AB will host a conference call (in English) for investors, analysts and the media on 29 April at 9.00 a.m. CET where Karl Thedéen, CEO, and Johan Wilsby, CFO, will present and comment on Transmode's Interim Report. To participate, call +44 (0)203 428 14 36, or alternatively the Swedish number +46 (0)8 566 427 01, a few minutes before the scheduled start. The conference call and the presentation will also be streamed live on Transmode's website: www.transmode.com/en/investors/reports/interim-reports. The presentation will also be available on the company's website after the conference concludes.
For more information please contact:
Johan Wilsby
Chief Financial Officer
Transmode AB
+46 (0)8 410 88189
johan.wilsby@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 designed to increase the capacity, flexibility and functionality of metro and regional networks and are based on Wavelength Division Multiplexing (WDM) and transport technologies such as Ethernet. Transmode's Native Packet Optical 2.0 architecture gives customers key advantages such as cost efficient Ethernet services, ultra-low latency, low power consumption and future proof network design.
Transmode is headquartered in Stockholm, Sweden and is listed on the NASDAQ Stockholm Exchange (TRMO). Since 2000 the company has installed more than 50,000 systems for over 650 fixed and mobile network operators, service providers, large enterprises and public institutions in over 50 countries across the globe.
For additional information about Transmode, please visit www.transmode.com.
Interim Report January-March 2015 http://hugin.info/134733/R/1916148/685058.pdf
HUG#1916148
