Interim report January - September 2009
Net Insight AB (publ), Corporate Reg. No. 556533-4397
January - September 2009
* Net sales of SEK 180.6 million (204.1).
* Software license and support revenue of SEK 47.7 million
(51.2).
* Improved gross margin at 77.1% (71.6).
* Net income before tax of SEK 29.3 million (31.0).
* Total cash flow of SEK 4.0 million (4.7).
* Earnings per share of SEK 0.05 (0.08).
Third quarter 2009
* Net sales of SEK 57.5 million (66.2).
* Software license and support revenue of SEK 15.5 million
(19.2).
* Improved gross margin at 76.7 (74.8).
* Net income before tax of SEK 8.2 million (9.1).
* Total cash flow improved to SEK 17.6 million (14.0).
* Earnings per share of SEK 0.01 (0.02).
At the moment our revenues are not growing and there are three main
reasons; reduced (but still substantial) repeat business, no large
projects in a delivery phase and investment/project decisions
slipping in many markets. Despite that, we are once again able to
report healthy earnings, a positive cash flow and a strong financial
position supported by a strong gross margin and operating expenses
according to plans.
The underlying demand and the project planning activity is high in
all of our core markets. Our growing partner network is playing a
vital role in winning new business and we have taken initial steps
together with large system integrators being a part of their total
systems and services offering.
During the quarter we have also won eight new customers and
established traction in some new very large markets such as e.g.
Brazil. I consider this an important confirmation of the
competiveness of our Nimbra platform and a foundation for future
business in these new markets. It is interesting to note that in the
currently challenging market with CAPEX restraints, we are better at
winning new customers and markets than before.
Much of our business is project based which means that sales across
regions fluctuate over time. Both Asia Pacific and Americas are
behind in terms of sales compared to last year, but have picked up
pace compared to the previous quarter. New customers and expansion
orders from a large telecom operator has been a positive contributor
in this period.
During the quarter we have also continued to win new orders for
national Digital Terrestrial TV distribution networks. In this
segment our unique Time Transfer feature is one of several strong
competitive differentiators.
The Nimbra platform is a world-class media transport platform for
reliable, easy-to-operate infrastructure for: video, TV, audio, radio
and IT traffic. It unifies any mix of transport infrastructures such
as IP/Ethernet/MPLS, SONET, WDM and fiber based networks. All
delivered in a true multiservice one-box solution.
I reiterate that Net Insight is well positioned and we continue to
confidently drive along our strategic direction for growth in the
years ahead.
Please, download the full report below.
Stockholm, 22 October 2009
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 (Corporate Reg. No. 556533-4397)
Net Insight AB (publ), Box 42093, 126 14 Stockholm, Tel +46 (0) 8 685
04 00, www.netinsight.net
