Strong earnings driven by high sales in the US and a strong dollar
“Substantial Nimbra Edge order is clear proof of our competitiveness in cloud.”
The solid growth seen in the first six months continued into the third quarter. We continue to report strong earnings, despite an increasingly uncertain market. The growth is driven by strong sales in region Americas, we delivered larger orders to two of our customers of which one includes delivery of equipment for the 2022 Football World Cup in Qatar. Due to the large proportion of USD in the sales for the quarter, both revenue and earnings benefited from a significant positive exchange rate effect compared with the same period year-on-year. Revenue and earnings from the new product area 5G synchronization also contributed to the strong sales and earnings.
Crister Fritzson, CEO Net Insight
July – September 2022
- Net sales amounted to SEK 130.3 (100.8) million, an increase of 29.2% year-on-year. In comparable currencies net sales increased by 12.3%.
- Operating earnings amounted to SEK 27.3 (11.8) million, corresponding to an operating margin of 20.9% (11.7%). Excluding foreign exchange rate differences of SEK 0.5 (-0.2) million and items affecting comparability of SEK -2.7 (0.0) million, operating earnings were SEK 29.5 (12.0) million.
- Net income for the period was SEK 24.2 (10.1) million.
- Earnings per share diluted was SEK 0.07 (0.03).
- Total cash flow for the Group was SEK -36.0 (25.1) million. Excluding the cash impact from repurchase of own shares (during 2022) and of the divestment of operations (during 2021), cash flow was SEK 2.1 (-6.5) million.
January – September 2022
- Net sales amounted to SEK 350.1 (272.8) million, an increase of 28.3% year-on-year. In comparable currencies net sales increased by 16.9%.
- Operating earnings amounted to SEK 47.3 (23.5) million, corresponding to an operating margin of 13.5% (8.6%). Excluding foreign exchange rate differences of SEK 0.9 (8.2) million and items affecting comparability of SEK -2.6 (0.6) million, operating earnings were SEK 49.1 (14.7) million.
- Net income for the period was SEK 44.1 (21.0).
- Earnings per share diluted was SEK 0.12 (0.05).
- Total cash flow, including discontinued operations in 2021, was SEK -61.0 (55.9) million. Excluding the cash impact from repurchase of own shares (during 2022) and of the divestment of operations (during 2021, cash flow was SEK 13.8 (9.2) million.
Q3 in brief:
- Substantial Nimbra Edge order
- First 5G delivery to Three Sweden
- First customer delivery of advanced ST 2110 functions and increased sales of JPEG XS
For the complete interim report, please refer to the attached PDF.
A web presentation for media and the financial community will take place at 9:30 am CET on November 8, 2022
CEO Crister Fritzson and CFO Joakim Schedvins will present and comment on the interim report: https://financialhearings.com/event/43520
For further information, please contact:
Crister Fritzson, CEO Net Insight AB, +46 8 685 04 00, email@example.com
About Net Insight
Net Insight (NASDAQ: NETI B) provides the highest performing, most open video transport and media cloud technology for content providers as the industry standard for flexibility and service across live contribution, distribution and remote production media workflows.
For over 25 years, the world’s leading content owners, broadcasters, production companies, service providers and enterprises have trusted Net Insight’s Emmy® Award winning Nimbra technology to guarantee media delivery. Today, Net Insight partners with hundreds of customers in over 70 countries to ensure media flows across managed and unmanaged IP networks, and the cloud – from anywhere, to everywhere. It enables customers to get the best from any mix of virtualized, cloud and IP technology and is the only platform to support all the major industry standards, protocols and clouds.
For more information, please visit netinsight.net