April-June 2015
- Sales were SEK 310.9 (250.0) m, an increase of 24.3%, or 12.9% adjusted for exchange rate fluctuations.
- Operating profit was SEK 35.4 (21.9) m, corresponding to an operating margin of 11.3% (8.8).
Adjusted operating profit, excluding transaction expenses related to Infinera's public offer to Transmode's shareholders, amounted to SEK 43.4 (21.9) m, corresponding to an adjusted operating margin of 13.9% (8.8). - Net profit was SEK 27.5 (19.1) m.
- Basic and diluted earnings per share were SEK 0.99 (0.69).
- Cash flow from operating activities was SEK 80.9 (78.5) m.
January-June 2015
- Sales were SEK 600.2 (481.3) m, an increase of 24.7%, or 12.0% adjusted for exchange rate fluctuations.
- Operating profit was SEK 82.5 (43.4) m, corresponding to an operating margin of 13.7% (9.0).
Adjusted operating profit, excluding transaction expenses related to Infinera's public offer to Transmode's shareholders, amounted to SEK 90.5 (43.4) m, corresponding to an adjusted operating margin of 15.1% (9.0). - Net profit was SEK 65.3 (37.7) m.
- Basic and diluted earnings per share were SEK 2.36 (1.36).
- Cash flow from operating activities was SEK 124.0 (80.1) m.
100G Driving Strong Growth
Transmode is now back in a high-growth phase, and in this quarter, our sales increased by 24% to SEK 311 m, our strongest-ever quarter. A strong gross margin and continued investment in products and business development produced an adjusted operating profit of SEK 43 m, corresponding to an adjusted operating margin of 14%. In addition to the healthy earnings, we also posted a strong cash flow in the quarter.
The demand for our 100G products is very high from current and new customers, with this share now exceeding 10% of our sales. Announcements in the quarter included Liberty Global, one of Transmode's largest customers, starting to build 100G networks in Europe using Transmode products.
We are growing in all regions, with the Americas growing fastest, by as much as 130% year on year. A high proportion of the sales increase in the Americas is sourced from existing customers, primarily for Data Center Interconnect (DCI) solutions. We also secured new customers in this region, and I continue to take a very positive view of this progress.
Sales in EMEA were up by 8%, and I'm pleased to conclude that some of our largest customers increased their investments in Transmode products in the quarter. The positive partner and service sales trend we have seen is remaining stable. Service sales represent a modest but increasing share of our business, and are making a positive contribution to gross margins.
Continued investment in product development resulted in new, innovative products in the quarter. At the yearly WDM & Next Generation Optical Networking conference in Nice Transmode launched the PT-Fabric, a next-generation modular switching solution, which takes packet transport and Ethernet switching to terabit levels in 100G based metro networks.
We have a strong first half-year behind us with healthy growth, high profitability, new customers and strong demand for our new, 100G products, and so I take a positive view of our future.
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. CET on 16 July 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 16 July 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 20 342 814 15 or alternatively the Swedish no. +46 8 566 426 66, and state "Transmode conference call" a few minutes before the scheduled start. The conference call and the presentation will also be streamed live on Transmode's website: http://www.transmode.com/sv/investerare/rapporter/delarsrapporter. 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
Hassan Tabrizi
Acting Chief Financial Officer
Transmode AB
+46 (0)70 543 3825
hassan.tabrizi@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.
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