Net Insight AB : Interim Report January - September 2012
(Thomson Reuters ONE) -
Net Insight AB [publ] Corporate Reg. No 556533-4397
Third Quarter 2012
· Net Sales of SEK 60.3 million (75.4) corresponding to a decline of
20.0% compared with the same period previous year. The decline in comparable
currencies amounts to 13.2%.
· Operating earnings of SEK -3.6 million (15.5), corresponding to an
operating margin of -6.0 % (20.6).
· Earnings per share of SEK -0.01 (0.04).
· Total cash flow of SEK million -9.2 (4.8).
· An efficiency and costs reduction program is introduced aiming at
reducing the cost base by SEK 25 million on an annual basis with full effect
from January 1, 2013. This includes termination of consultancy contracts as well
as up to 10 positions being made redundant.
January - September 2012
· Net sales of SEK 212.0 million (214.2) corresponding to a decline of
1.0 % compared with the same period previous year. The decline in comparable
currencies amounts to 0.1%.
· Operating earnings of SEK million 5.0 (26.7), corresponding to an
operating margin of 2.3 % (12.5).
· Earnings per share of SEK 0.04 (0.07).
· Total cash flow of SEK -5.6 million (-40.5).
Challenging development in certain markets
After 23 consecutive profitable quarters we report negative operating earnings
of SEK -3.6 million for the third quarter. It was mainly our business in Eastern
Europe and the Middle East that fell significantly short of expectations. The
third quarter started off in a strong way but half way, significant project
delays occurred.
Financials are weaker than the previous year mainly as a result of lower
revenues. We have invested significantly over the last few years in R&D to
broaden the product portfolio and in Sales and Marketing to broaden our customer
base and geographic reach. We are now at the stage where we will focus efforts
and put in place an efficiency and cost reduction program aiming at reducing the
cost base by SEK 25 million on an annual basis, with full effect from January
1, 2013. A restructuring charge estimated to SEK 7 million will affect the 2012
fourth quarter result.
The Broadcast and Media Network (BMN) business showed a significant win with a
major network provider in South Korea that ordered our Nimbra MSR Platform for
contribution and distribution services throughout South Korea. There are many
DTT/TV distribution projects remaining around the world that we are following
very closely. This quarter we won another DTT rollout for the national
broadcaster in Austria, ORS. Many DTT upgrades and deliveries to existing DTT
customers occurred during the quarter in several countries.
Together with many of our customers we were involved in live transmissions from
the London Olympic Games. We have pioneered what it is called remote production
meaning that large and small broadcasters are able to significantly reduce
technical production costs and focus on content creation to become more
competitive. The London Olympic Games was the first really large sporting event
where remote productions were commercially used to gain efficiencies.
During the fall Net Insight launched several new products and features improving
our competitiveness in the access market and significantly improving capacity,
network management and Ethernet capabilities.
I am disappointed by the weak quarterly result and we do face delays when it
comes to larger project procurements. The timing of larger projects is and
always will be difficult to specify but I am convinced that a significant number
of them will happen and, that we are tracking and pursuing the business
opportunities within our addressable market in a good way, which is the key
determining factor for future growth.
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
October 24, 2012 at 08.45 am CET.
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 Insight's 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.
More than 150 world class customers run mission critical video services over Net
Insight products in over 50 countries. Net Insight is quoted on the NASDAQ OMX,
Stockholm.
For more information, visit www.netinsight.net
Net Insight AB : Interim Report January - September 2012 :
http://hugin.info/130084/R/1651726/532945.pdf
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Source: Net Insight AB via Thomson Reuters ONE
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Unternehmensinformation / Kurzprofil:
Datum: 24.10.2012 - 08:46 Uhr
Sprache: Deutsch
News-ID 195591
Anzahl Zeichen: 6082
contact information:
Town:
Stockholm
Kategorie:
Business News
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