Net Insight AB [publ] Corporate Reg. No 556533-4397
Fourth Quarter 2010
· Net Sales of SEK 88.1 million (52.2) corresponding to a growth of 69%
compared with the same period previous year. The growth rate in comparable
currencies amounts to 89%.
· Operating earnings of SEK 15.7 million (2.2), corresponding to an
operating margin of 17.8% (4.2).
· Earnings per share of SEK 0.05 (0.03).
· Total cash flow of SEK 31.6 million (-3.8).
Full Year 2010
· Net sales of SEK 287.7 million (232.8), corresponding to a growth of
24% compared with previous year. The growth rate in comparable currencies
amounts to 40%.
· Operating earnings of SEK 43.1 million (34.0), corresponding to an
operating margin of 15.0% (14.6).
· Earnings per share of SEK 0.26 (0.09). Adjusted for the on-time effect
related to the IPR transaction earlier announced, Earnings per share was 0.10
(0.09).
· Total cash flow of SEK 83.9 million (0.3).
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 February 18, 2011 at 08.30 am CET.
RECORD QUARTER AND FULL YEAR
FOURTH QUARTER
This is our strongest quarter so far. The revenues after currency effects grew
by 69% and reached 88 MSEK (52). In fixed and comparable currencies the revenue
growth was 89%. The adjusted gross margin remains high and reached 66% (74), but
the gross margin was affected by a negative impact from currency effects and the
fact that we have won larger projects with certain price pressure. Despite
increased expenditures in sales and marketing as well as product development,
the operating margin reached 18% (4). The cash flow from ongoing operations
reached 47 MSEK (10) driven by increased earnings and improved cash conversion
from trade receivables.
During the quarter Net Insight won several significant orders with future
potential. Together with our partner, the largest swiss cable TV operator Net
Insight received an order from the Swiss Public Broadcaster SRG exceeding 20
MSEK. Telia Sonera International Carrier expanded their Nimbra based national
media contribution network to transport HD video from Swedish sports and event
arenas. That order value exceeds 15 MSEK. We also won a significant order for
the initial phase of a nationwide digital TV and media network in the EMEA
region exceeding 2 MEUR.
The indirect revenue through partners amounted to 31% (35). Larger telecom
equipment providers are teaming up with Net Insight to jointly secure larger
projects and service providers (e.g. telecom operators) are to an increasing
extent buying equipment to sell a service to the media and broadcast companies.
FULL YEAR 2010
Net sales 2010 after foreign exchange effects increased by 24% and reached 288
MSEK. In fixed and comparable foreign exchange rates our net sales growth
amounted to 40%. Our cash flow from ongoing operations was 28 MSEK. The adjusted
gross margin reached 71% compared with 76% in the previous year. The decline is
mainly due to foreign exchange impact and a certain price pressure from winning
larger projects in 2010. We continued to invest in sales and marketing in order
to support our long-term growth, and we also continued with significant
investments in R&D, all according to plan. In total our net cash position
increased by 84 MSEK during 2010.
During the year we added fifteen new customers and eight new countries where we
installed the Nimbra platform. Over a 5 year time span we have grown from a
customer base of 25 network owners in 15 countries and today we count 130
customers in 50 countries, a very rapid customer and geographic expansion that
we plan to continue.
Stockholm, February 18, 2011
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
Net Insight AB
Box 42093
126 14 Stockholm
Tel +46 (0) 8 685 04 00
www.netinsight.net
Corporate Reg. No. 556533-4397
Net Insight delivers the world's most efficient and scalable transport solution
for Broadcast and IP Media, Digital Terrestrial TV, Mobile TV and IPTV/CATV
networks.
Net Insight products truly deliver 100 percent Quality of Service with three
times improvement in utilization of bandwidth for a converged transport
infrastructure. Net Insights Nimbra(TM) platform is the industry solution for
video, voice and data, reducing operational costs by 50 percent and enhancing
competitiveness in delivery of existing and new media services.
World class customers run mission critical video services over Net Insight
products for more than 100 million people in more than 40 countries. Net Insight
is quoted on the NASDAQ OMX Nordic Exchange, Stockholm.
For more information, visit www.netinsight.net
[HUG#1490315]
