April - June 2012
* Sales were SEK 270.3 (215.6) m, corresponding to an increase of 25.3% and
22.4% adjusted for exchange rate fluctuations.
* Operating profit was SEK 44.0 (26.7) m and operating margin was 16.3%
(12.4%). Adjusted operating profit for the second quarter 2011 was SEK 37.1
m and adjusted operating margin was 17.2%. The adjustment was for expenses
of SEK 10.4 m relating to Transmode's IPO on NASDAQ OMX Stockholm.
* Net profit was SEK 34.8 (22.2) m for the quarter.
* Earnings per share after dilution were SEK 1.25 (0.81).
* Cash flow from operating activities was SEK 0.4 (16.9) m.
* New five-year frame agreement signed with XO Communications of the US.
* Transmode launched its network management product suite Enlighten(TM) and
support for network synchronization, Intelligent Sync (iSync).
January-June 2012
* Sales were SEK 505.5 (396.7) m, corresponding to an increase of 27.4% and
25.3% adjusted for exchange rate fluctuations.
* Operating profit was SEK 83.5 (34.9) m and operating margin was 16.5%
(8.8%). Adjusted operating profit for the first half-year 2011 was SEK 53.6
m and adjusted operating margin was 13.5%. The adjustment was for expenses
of SEK 18.7 m relating to Transmode's IPO on NASDAQ OMX Stockholm.
* Net profit was SEK 66.0 (28.6) m for the period.
* Earnings per share after dilution were SEK 2.38 (1.06).
* Cash flow from operating activities was SEK 31.3 (19.5) m.
CEO's Statement: Transmode's Profitable Growth Continues
"Sales increased to SEK 270.3 m in the second quarter of the year, up 25.3% on
the corresponding quarter of the previous year. I'm pleased that again in this
quarter, we grew in all three regions.
Overall, the company posted an operating profit of SEK 44.0 m in the quarter,
corresponding to an operating margin of 16.3%. This healthy operating profit was
driven by revenue gains, a gross margin of 49.0% and continued operational
efficiency. The most important contract in the quarter was the five-year frame
agreement we signed with XO Communications of the US for deliveries of WDM
equipment to their nationwide network. Furthermore, Transmode has launched its
Enlighten(TM) management suite, which makes it easier for our customers to
manage and plan their optical networks. We also launched our innovative offering
for network synchronization under the "iSync" banner. To summarize, we are
pleased with a very positive first half-year that demonstrates that our growth
strategy with its focus on geographical expansion, innovative products and
operational efficiency, is successful. Therefore, we are continuing to invest
for profitable growth. "
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 24 July at 09:00 CEST where CEO Karl Thedéen, and CFO
Tomas Kihlstrand, will present and comment on Transmode's Interim Report.
Participate in the conference call on +44 (0) 20 3003 2666, or the Swedish
number +46 (0)20 089 6377, stating "Transmode conference call" a few minutes
before the scheduled start. The conference and presentation will also be
streamed live on Transmode's website: 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 CEST on 24 July,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#1628740]
