NET INSIGHT YEAR-END REPORT JANUARY – DECEMBER 2022

A solid end to a strong year and new financial targets

2022 was a successful year for Net Insight, resulting in our highest ever operating earnings for the full year. Despite challenges in the macro environment, we have maintained a focus on the strategy that underpins our growth. We developed our product portfolio and established time synchronization for 5G as one of our primary offerings.

In light of our positive performance in recent years, as well as long-term strong conditions, the Board of Directors has decided to review the financial targets. Our new financial targets in 2023–2027 are an organic average annual growth of at least 15% and an operating margin (EBIT%) that within the period will reach 20%.

Crister Fritzson, CEO Net Insight

October – December 2022

• Net sales amounted to SEK 125.0 (107.9) million, an increase of 15.9% year-on-year. In comparable currencies net sales increased by 3.7%.
• Operating earnings amounted to SEK 13.2 (3.3) million, corresponding to an operating margin of 10.6% (3.0%). Excluding foreign exchange rate differences of SEK -2.7 (-1.7) million and items affecting comparability of SEK 0.0 (-1.2) million, operating earnings were SEK 15.9 (6.2) million.
• Net income for the period was SEK 9.9 (2.8) million.
• Earnings per share diluted was SEK 0.03 (0.01).
• Total cash flow for the Group, including discontinued operations in 2021, was SEK 14.0 (15.2) million. Excluding the cash impact from repurchase of own shares (during 2022 and 2021) and from divestment of operations (during 2021), cash flow was SEK 37.5 (24.9) million.

January – December 2022

• Net sales amounted to SEK 475.1 (380.7) million, an increase of 24.8% year-on-year. In comparable currencies net sales increased by 13.3%.
• Operating earnings amounted to SEK 60.5 (26.8) million, corresponding to an operating margin of 12.7% (7.0%). Excluding foreign exchange rate differences of SEK -1.9 (6.5) million and items affecting comparability of SEK -2.6 (-0.7) million, operating earnings were SEK 65.0 (20.9) million.
• Net income was SEK 54.0 (23.8).
• Earnings per share diluted was SEK 0.15 (0.06).
• Total cash flow, including discontinued operations in 2021, was SEK -47.0 (71.0) million. Excluding the cash impact from repurchase of own shares (during 2022 and 2021) and from divestment of operations (during 2021, cash flow was SEK 51.3 (34.1) million.

Q4 in brief:

• A solid end to a strong year
• Pilot order in 5G synchronization from one of Canada’s leading mobile operators
• Several important Nimbra Edge orders

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 February 21, 2023
CEO Crister Fritzson and CFO Joakim Schedvins will present and comment on the interim report: https://financialhearings.com/event/46207

For further information, please contact:
Crister Fritzson, CEO 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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