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
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.
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
Chief Executive Officer
For more information, please contact:
Fredrik Trägårdh, CEO Net Insight AB
Tel: +46 (0) 8-685 04 00, email: email@example.com
Net Insight AB
126 14 Stockholm
Tel +46 (0) 8 685 04 00
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