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Press Release -- November 26th, 2024
Source: Net Insight AB
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NET INSIGHT INCREASES INVENTORY LEVELS TO SECURE FUTURE COMPONENT SUPPLY

Stockholm, Sweden – In line with previous communications, the product lifecycle for programmable circuits (FPGAs) has been shortened. To secure component supply, Net Insight has decided to temporarily increase inventory levels of these circuits. The total order value is estimated at USD 79 million.

FPGA circuits are a key component in Net Insight’s media products, providing the hardware with increased flexibility through possible post-manufacturing reprogramming. The rapid technological advancements, not least the rise of AI, have shortened suppliers’ product lifecycles for these circuits. In order to secure Net Insight’s delivery of media products during a transition period, the company has decided to temporarily increase the inventory levels of the current generation of FPGA circuits above normal levels.

The purchase of FPGA circuits will be carried out in stages, with a total procurement cost of 7–9 million USD. The company will obtain a discount that will compensate for the increased capital tied up in inventory. The purchases will be financed using cash reserves and are expected to commence during the second half of 2025, with the final delivery estimated by the end of 2025.

By acting proactively, Net Insight minimizes potential delivery risks and can continue to meet the growing demand for its media products.

For further information, please contact:
Crister Fritzson, CEO of Net Insight AB, +46 8 685 04 00, crister.fritzson@netinsight.net

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

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