Net Insight AB [publ] Corporate Reg. No 556533-4397
Fourth Quarter 2012
·        Net Sales of SEK 68.3 million (80.3) a decrease of 14.9% compared to
the same period previous year. In comparable currencies the decrease was 13.5%.
·        Operating earnings, adjusted for restructuring expenses of SEK 3.0
million, amounted to SEK 0.8 million (16.1), corresponding to an adjusted
operating margin of 1.2% (20.0)
·        Earnings per share of SEK -0.01 (0.06).
·        Total cash flow of SEK -4.7 million (0.8).
January - December 2012
·        Net sales of SEK 280.3 million (294.5) corresponding to a decrease of
4.8% compared to the same period previous year. The decrease in comparable
currencies amounts to 3.5%.
·        Operating earnings, adjusted for restructuring expenses of SEK 3.0
million, amounted to SEK 5.7 million (42.8), corresponding to an operating
margin of 2.1% (14.5).
·        Earnings per share of SEK 0.03 (0.13).
·        Total cash flow of SEK -10.4 million (-39.6).
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
February 14, 2012 at 08.45 am CET.
A WEAK QUARTER ENDING A CHALLENGING YEAR
FOURTH QUARTER
Revenues of 68 MSEK (80 MSEK) are 15 % below the same period in the previous
year. The revenue decline is driven by the same events as explained in the full
year comment below. In summary it relates to project delays in Eastern Europe,
Middle East and Africa while Western Europe and APAC performed well and ahead of
previous year. The gross margin reached 59 % (62 %) a difference mainly due to
increased depreciation of capitalized R&D. The fourth quarter result is affected
by a one-time restructuring charge of 3 MSEK. Excluding the restructuring charge
the operating earnings reached 1 MSEK (17 MSEK). The restructuring charge
relates to the efficiency and cost reduction program announced in October that
reduces our total cost base by 25 MSEK for 2013.
During the quarter we had a good flow of repeat business from customers across
the world but it was the first quarter in a long time where we actually did not
close any large single projects, which of course affects the result negatively.
As communicated earlier, single large projects will have a significant effect on
our quarterly financial performance.
FULL YEAR 2012
Already the first three quarters indicated relatively flat revenues and, with a
weak top line in the fourth quarter, we end the full year with total revenues of
280 MSEK (295 MSEK). The reported decline is 5 % and currency adjusted the
decline would be 3.5 %. The gross margin reached 60 % (62 %) and the slight
decline is mainly due to increased depreciations on capitalized R&D. The full
year operating result, excluding the restructuring charge of 3 MSEK, reached 6
MSEK (43 MSEK). The decline is explained by; 22 MSEK of increased Operating
Expenses, increased depreciation on R&D by 11 MSEK and lower revenues.
There are three main reasons why we were not able to grow in 2012. Projects
identified and targeted for 2012 in Eastern Europe, Middle East and Africa did
not materialize as planned and were delayed, but not lost. Secondly, five of our
ten largest target project opportunities were DTT-projects, none of which
materialized during the year, again not lost but delayed. Thirdly and
consequently, the average order size declined significantly meaning more efforts
to reach "flat" revenues.
Nevertheless, we had very important customer wins and we launched many new
products. Overall we did business with over 100 of our total 175 customers
around the world. We did business with over 25 new customers globally. We
continued to win the DTT expansions and increase our business and presence in
important countries like China and Brazil. The projects became smaller than
expected but just as an example, we already count 20 different customers in
China where we recently strengthened our presence.
The industry perception of a company is very important and as per recent report,
Devoncroft "The Big Broadcast Survey 2012, Net Insight has improved its
perception measurably over the last few years.
The market and technical trends that we have predicted are continuing in a way
that increases our credibility and relevance for future video and data intensive
network roll outs. During the year we also doubled the capacity of our core
switches, we launched three new access products and we introduced a cost
efficient possibility for network owners to improve picture quality over
unmanaged public internet connections. We also did significant business and had
very good market response for our new video compression module (JPEG2000).
We were not able to deliver a satisfactory result. In summary 2012 was a year
when; we won business with over 100 existing customers and 25 new ones. We
actually concluded 30 % more business transactions and we introduced more new
products than ever before. Net Insight is very well positioned with medium and
large size network operators to win larger projects, and to get back to
profitable growth again.
Stockholm, February 14, 2013
Fredrik Trägårdh
Chief Executive Officer
For more information, please contact:
Fredrik Trägårdh, CEO Net Insight AB
Tel: +46 (0) 8-685 04 00, email:Â fredrik.tragardh@netinsight.net
Thomas Bergström, CFO Net Insight AB
Tel: +46 (0) 8-685 06 05, email: thomas.bergstrom@netinsight.net
Net Insight AB
Box 42093
126 14 Stockholm
Tel +46 (0) 8 685 04 00
www.netinsight.net
Corporate Reg. No. 556533-4397
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 175 world class customers run mission critical video services over Net
Insight products in over 60 countries. Net Insight is quoted on the NASDAQ OMX,
Stockholm.
For more information, visit www.netinsight.net
YEAR-END REPORT 2012:
http://hugin.info/130084/R/1678005/547483.pdf
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Source: Net Insight AB via Thomson Reuters ONE
[HUG#1678005]