MARKET PROSPECTS AND FUTURE OUTLOOK
The market atmosphere in 2002 was characterized by continuing restraint and caution that affected the potential for new investments in the IT and telecommunications sector. Despite the tough situation, Net Insight increased its sales by 56% over the year, from SEK 21.5 million to 33.7 million, by concentrating on high-quality and cost-effective solutions that provide operators with quick investment payback. Net Insight is currently addressing three main market segments which all show a ongoing positive development:
Triple Play in extensive growth
In the USA, Triple Play was launched and became established as a concept for operators who want to offer three of the largest revenue streams, i.e. TV/video, Internet and telephony, via a single infrastructure. This market performed steadily over the year, Net Insight with its partner Allied Telesyn sold equipment for expansion of three mutually independent operators' networks, and major sales growth is expected. Net Insight thinks this market will provide it with turnover of between SEK 500 and 1500 million over the next few years.
Several media networks are installed
Other segments also being canvassed in parallel with the Triple Play market are professional media networks and metro networks. The general economic slowdown has affected the media market by reducing advertising revenue, which has meant that development has not come up to expectations. Despite this, customers to which Net Insight delivered media network solutions during the year include the Dutch operator KPM, the cable TV company UPC, Germany's Bayerischer Rundfunk and the world's sixth largest TV company, Brazil's TV Globo. In the USA, the TV giants MSNBC and ABC are using Net Insight solutions for transporting high-quality production video between Washington DC and New York. The media market is expected to recover in the coming year, leading to increasing sales.
Metro networks in build-outs
Net Insight's third prioritized segment, regional and metro optical networks, is expected to grow substantially. According to a Pioneer Consulting analysis, this market will produce a turnover of 8.8 billion dollars as early as 2004. Net Insight recently delivered equipment for the Swedish energy company Norrtälje Energi's continuing regional network expansion and for the archipelago operator Nilings' broadband network.
"I have great confidence in Net Insight's development prospects for the coming year", says Net Insight CEO Tomas Duffy. "Our powerful network solutions in combination with strong collaboration partners provide us with the basis for a substantial sales increase in 2003".
The entire report is attached to this press release or can be found at Net Insight´s web site: www.netinsight.net
