NET INSIGHT
INTERIM REPORT JANUARY - JUNE 2010
Net Insight AB [publ] Corporate Reg. No 556533-4397
Second Quarter 2010
· Net sales of SEK 71.5 million (62.6).
· Software license and support revenue of SEK 19.0 million (15.3).
· Gross Margin of 74.3% (78.7) applying the same accounting treatment
as in previous years.
· Gross Margin of 66.4% (78.7).
· Operating earnings of SEK 11.9 million (11.0), corresponding to an
operating margin of 16.6% (17.6).
· Net income of SEK 8.7 million (7.9).
· Net profit margin of 12.2% (12.7).
· Earnings per share of SEK 0.02 (0.02).
· Total cash flow of SEK 3.3 million (-34.5).
January - June 2010
· Net sales of SEK 132.0 million (123.1).
· Software license and support revenue of SEK 34.8 million (32.2).
· Gross Margin of 74.5% (77.2) applying the same accounting treatment
as in previous years.
· Gross Margin of 66.1% (77.2).
· Operating earnings of SEK 18.1 million (21.3), corresponding to an
operating margin of 13.7% (17.3).
· Net income of SEK 72.7 million (15.1). The improvement is a one-time
effect related to the IPR transaction in Q1.
· Net profit margin of 55.1% (12.3).
· Earnings per share of SEK 0.19 (0.04).
· Total cash flow of SEK 56.4 million (-13.5).
A strong quarter with revenue growth of 14%
We are delivering a strong second quarter both from a financial and strategic
perspective.
Revenue is up with 14% compared to last year and 18% from the first quarter
2010. We also see a healthy operating margin of 17%.
For the first half of the year, the operating earnings are slightly down
compared to last year, as a result of increased investments in sales and
marketing. This in turn has led to an increased order flow and more business
opportunities.
The company is progressing well towards our strategic objectives to leverage our
DTT leadership, to expand our business in broadcast and media as well as finding
new business in the area of CATV/IPTV.
I am very proud to count six important DTT wins over the past six months. We
just recently, in the middle of July, announced a very significant win in Poland
where a combined offering of Ericsson and Net Insight was the winning solution
for a new DTT network. Earlier in the quarter we won what I regard as a very
significant and strategic project when Teracom of Sweden selected Net Insight
for the world's first all IP-based DVB-T2 network.
During the end of the quarter we have been greatly involved with the FIFA World
Cup live transmissions from South Africa. The Nimbra platform was used by nine
different customers to bring live TV signals to over 80 countries. For the first
time ever our customer ESPN transmitted live 3D feeds from South Africa to
viewers across the United States. I can also mention that our participation was
successful and we have received positive feedback from our customers which holds
us in good stead for the future.
In regards to the CATV/IPTV business area we received an order with a large
cable operator in Canada, a new customer to Net Insight, which is encouraging
for future opportunities in the cable TV market.
Geographical expansion is of strategic importance to us and during the second
quarter we have entered new markets with new partners and reached new customers
successfully. The new markets entered during the second quarter are the
Philippines and South Africa. I am satisfied with the first half of the year and
at the moment I see no lack of business opportunities for the quarters ahead.
The full report can be found below.
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 July 22nd, 2010 at 08.30 am CET.
Stockholm, July 22(nd), 2010
Fredrik Trägårdh
Chief Executive Officer
For more information, please contact:
Fredrik Trägårdh, CEO Net Insight AB
Tel: +46 (0) 8-685 0400, fredrik.tragardh@netinsight.net
Thomas Bergström, CFO, Net Insight AB
Tel.: +46 (0) 8-685 04 00, email:thomas.bergstrom@netinsight.net
Net Insight AB
Net Insight AB (publ)
Box 42093
126 14 Stockholm
Tel +46 (0) 8 685 04 00
www.netinsight.net
Corporate Reg. No. 556533-4397
[HUG#1433345]
