INTERIM REPORT JANUARY - MARCH 2011
Net Insight AB [publ] Corporate Reg. No 556533-4397
First Quarter 2011
· Net Sales of SEK 66.6 million (60.5) corresponding to a growth of 10.1% compared with the same period previous year. The growth rate in comparable currencies amounts to 24%.
· Operating earnings of SEK 2.9 million (6.2), corresponding to an operating margin of 4.3% (10.3).
· Earnings per share of SEK 0.01 (0.16), decrease is related to a positive one time effect in Q1 '10
· Total cash flow of SEK -19.5 million (53.1), the cash flow in Q1 2010 included a SEK 60 million positive one time effect.
CONTINUED GROWTH DESPITE NEGATIVE CURRENCY EFFE
The first quarter of 2011 showed continued revenue growth. Revenues increased by 10 % which, in comparable currencies, would be an increase of 24 %. The gross margin for the quarter is lower for the same reasons as explained earlier, foreign exchange effects and continued deliveries under larger projects. The net cash position at the end of the quarter remains strong at 216 MSEK (205 MSEK).
The business during the first quarter can be characterized by a good flow of repeat business including continued deliveries under contracts won in 2010. The revenue split between our main business areas remained approximately the same, Broadcast and Media Networks 63 % (69 %), DDT 34 % (30 %) and IPTV Cable TV 3 % (1 %). We continue to win DDT business and early in the quarter we were selected for a new project in Morocco, in partnership with Ericsson. Also the early wins for DDT in Argentina have been followed up with recently announced expansions. At the same time the Broadcast and Media Network business remains substantial and important for us.
In terms of visibility we have increased our involvement significantly in key trade shows around the world and we have participated as a technology partner in several big sporting events. Our Nimbra solution was for instance used as the best worlds alpine skiers gathered in Garmich-Partenkirchen, for the 2011 FIS alpine world ski championships in February. Likewise, the EBU and other important customers used our equipment to transport signals from the cross-country world championships held in Oslo.
Our network of partners representing Net Insight on the front line in indirect sales has now reached a number of more than 40 partners covering 65 countries. During the first quarter our indirect sales amounted to 62 % of our total revenues. While this figure is encouraging it should only be seen as a sign that our partnership strategy is working, however the percentage of indirect sales will of course fluctuate over time.
About Net Insight
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 50 countries. Net Insight is quoted on the NASDAQ OMX, Stockholm.
For more information, visit www.netinsight.net
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 May 6, 2011 at 08.30 am CET.