Net Insight publishes Interim Report for the period January - June 2008

 

 

 

January - June 2008

 

         Net sales increased by 27% to SEK 137.9 million (108.9).

         Operating earnings improved to SEK 20.1 million (8.1)

         Net income improved to SEK 22.0 million (8.6).

         Net profit margin was 16.0% (7.9)

         Gross margin at 70.2% is affected by reclassification of support and training expenses. Adjusted for this item gross margin was 72.1% (70.6).

         Software and support revenue increased to SEK 40.8 million (25.0).

         Total cash flow of SEK -9.3 million (12.3).

         Earnings per share amounted to SEK 0.06 (0.02).

 

 

Second quarter 2008

 

         Net sales increased by 32% to SEK 73.2 million (55.5).

         Operating earnings improved to SEK 14.5 million (3.3)

         Net income improved to SEK 15.8 million (3.5).

         Gross margin at 71.3% is affected by reclassification of support and training expenses. Adjusted for this item gross margin was 73.2% (70.7).

         Software and support revenue increased to SEK 26.1 million (12.4).

         Total cash flow amounted to SEK 13.2 million (4.0).

         Earnings per share amounted to SEK 0.04 (0.01).

 

 

The positive growth trend continued during the second quarter 2008, and Net Insight is able to record a healthy profit margin, our highest quarterly revenues and our strongest overall financial performance so far.

Europe continues to generate the largest revenues but both the Asia Pacific region and North America represent strong growth during the first six months.

We continue to win new customers in our core market segments and have built a strong customer base that generates a substantial volume of repeat business.

As previously communicated the Nimbra equipment was delivered and installed under the contract with BOB for the Beijing Olympics. As communicated in the press, with 1 000 cameras at the different Olympic venues and the transport platform handling the unprecedented volume of HDTV contribution to the International Broadcasting Center, ultimately reaching TV viewers globally, this is the world's largest and most mission critical TV event.

The need for robust, high capacity, high quality and cost efficient video transmission networks continues to grow practically everywhere in the world.

Asia Pacific represents a fast growing market, now also for Net Insight. We are committed to the Asia Pacific market and continue to gain significant momentum with new business and business opportunities in the region such as the Thai telecom operator TOT.

Net Insight's Nimbra platform continues to prove its competitiveness in the important segment for Digital Terrestrial TV networks (DTT). The Irish operator RTÉ NL selected Net Insight to supply equipment for a national DTT network that will also implement our unique Time Transfer feature for GPS-free time synchronization. Many other DTT projects are being actively pursued. We were established on a new market in Europe when Net Insight was selected to supply Nimbra equipment to a national intra-city fiber backbone.

Our market momentum continues in North America where all of our recently won major customers have expanded their media transport networks during the quarter. In May, we won a new important order with a large North American telecom operator for a multiservice transport network to serve a large global media group. Our Nimbra platform will ensure the transmission of high-quality video in a secure and highly efficient manner also allowing our customer to converge everything from media services to Ethernet services on a single platform.

Our Nimbra platform guarantees exceptional quality and efficiency and our world-class customers show confidence in the Nimbra platform. All in all, I repeat that this situation is very encouraging for the future.

 

Stockholm, 28 August 2008

 

Chief Executive Officer

 

 

Fredrik Trägårdh, CEO Net Insight AB

Tel.: +46 (0) 8-685 04 00, email: fredrik.tragardh@netinsight.net

 

Lars Kevsjö, CFO Net Insight AB

Tel.: +46 (0) 8-685 04 00, email: lars.kevsjo@netinsight.net

 

Net Insight AB

Net Insight AB (publ)Box 42093

126 14 Stockholm

Tel +46 (0) 8 685 04 00

www.netinsight.net