Interim / Quarterly Report • Jul 20, 2012
Interim / Quarterly Report
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Net Insight AB [publ] Corporate Reg. No 556533-4397
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 20, 2012 at 08.45 am CET.
Revenues were up 4% compared with the same period in the previous year, currency adjusted the change was minus 1%. For the first half of the year our revenue growth was 9% and currency adjusted 7 %. The gross margin remains strong and reached 61 % (61.3) for the quarter. Operating earnings reached 3 MSEK compared with 8 MSEK in the previous year. Increased operating expenses to capture future growth and in line with earlier communications, is the main reason for the lower profitability. Cash flow during the quarter was strong and reached 15 MSEK compared with a negative 26 MSEK in second quarter the previous year. We continue to have relatively high trade receivables but the credit quality of our customer base mean a low level of risk in trade receivables.
Partners continued to generate good business during the quarter but the amount of direct business was higher than in recent periods. As stated earlier the amount of direct business will vary over time but the strong trend of doing business through our partner network remains. We also saw a large amount of repeat business with existing customers during the quarter. In line with our strategy, a major part of our business today, more than 70%, is coming from service providers i.e. network owners selling transport services. We have a special focus on fast growing economies and this time Asia represented 16 % of total revenues. The revenue split between the segments this quarter was 81% in the Broadcast and Media Networks and 19 % in DTT. We sold equipment for upgrades to DTT networks in e.g. Northern Europe and Latin America.
One of our major marketing efforts took place in the quarter when we were present at the NAB trade show 2012 announcing new partnerships and products. We started a new partnership to offer more complete wide as well as local area network solutions for the broadcast and studio environments. A new product in the Nimbra 300 series was launched, the Nimbra 310, that offers a cost effective and high performing MSR with guaranteed quality of service. This means a further expansion of our product portfolio to better address the access market.
Stockholm, July 20, 2012 Fredrik Trägårdh CEO
During the second quarter Broadcast and Media Networks (BMN) represented 81% of total revenues and Digital Terrestrial TV networks (DTT) represented 19%. The DTT revenues are mainly coming from existing customers' network build-outs in Argentina, Belgium and Sweden. Net Insight has a great track record when it comes to supporting live events and mainly in sports. This quarter Net Insight supported e.g the Eurovision Song Contest delivering professional services to customers.
Net Insight recruited new partners in several regions during the quarter mainly in Eastern Europe and in Americas. At the end of the quarter Net Insight had more than 50 partners in its Global Partner network.
Net Insight's major broadcast industry events for the second quarter are NAB in Las Vegas and the Asian show CommunicAsia in June. Net Insight also participated in exhibitions in Belgium, Germany, Italy, Korea and Turkey.
At the NAB show Net Insight announced a partnership with Miranda Technologies with the purpose to simplify remote workflows and production for live events.
Net Insights' PR activities have resulted in good media coverage around topics such as the London Olympics, remote production and our new products launched at NAB.
Net Insight is working to increase awareness about the company and our solutions. In the newly published "Big Broadcast survey" by Devoncroft, a market research company, it is shown that Net Insight has increased its awareness significantly since the 2011 report.
In April Net Insight launch several new products and features to the market. A new product in the Nimbra MSR 300 series, Nimbra 310 was introduced to address the need of, a costefficient compact one-box access MSR for true multi-service transport of media and data services. New protection scheme features on the Nimbra platform were launched to offer enhanced Ethernet service protection to offer high availability mission-critical services. The product portfolio was also broadened by adding smart form-factor pluggable transceivers (SFPs) to its existing interfaces, enabling interconnectivity with new technologies resulting in cost savings for our customers.
Net Sales for the second quarter amounted to SEK 75.0 million (72.2), which represents a year over year growth of 3.9%. In comparable currencies the growth amounted to -1.4%. Revaluation of accounts receivables in foreign currencies had a positive effect on Net Sales of SEK 1.6 million compared to SEK 1.4 million for the same period last year.
APAC shows good growth compared to last year mainly related to China whereas the Americas were not able to repeat the strong volumes reached during the second quarter 2011 which included large orders from The Switch. EMEA came in on par with previous year.
| Q2 | Q2 | Q3 | Q4 | Q1 | Q3'11- | Full year | |
|---|---|---|---|---|---|---|---|
| Amount in SEK million | 2012 | 2011 | 2011 | 2011 | 2012 | Q2'12 | 2011 |
| EMEA | 45,6 | 45,1 | 51,8 | 56,7 | 54,6 | 208,7 | 203,9 |
| Americas | 17,5 | 21,8 | 16,8 | 18,3 | 13,7 | 66,3 | 70,1 |
| APAC | 11,9 | 5,3 | 6,8 | 5,3 | 8,3 | 32,3 | 20,5 |
| Totalt | 75,0 | 72,2 | 75,4 | 80,3 | 76,6 | 307,3 | 294,5 |
Sales in the Broadcast & Media business area amount to 81% (65) of total sales and Digital Terrestrial TV accounted for 19% (23). IPTV/CATV accounted for 0% (12) of the turnover.
Hardware revenue amounted to SEK 52.8 million (48.9). Sales of software licenses declined slightly to SEK 6.2 million (8.1) whereas support and service revenues were in line with previous year at SEK 13.1 million (13.1). The above figures are exclusive of other revenues of SEK 2.9 million (0.4) which mainly consists of revaluation of the accounts receivables stock in foreign currencies and leasing revenues.
As shown in the condensed income statement on page 11, the Gross margin is 60.8% (61.3). The decline is related to increased amounts of depreciation of capitalized R&D expenditures.
Total operating expenses for the first quarter amounted to SEK 42.2 million (35.9). Sales and marketing expenses amounted to SEK 25 million (21.9). The increase is related to an increased number of sales and sales support staff. Administrative expenses are in line with previous year at SEK 7.8 million to SEK 7.2. R&D expenses have increased to SEK 9.4 million (6.7) as more resources have been added and the rate of capitalization has decreased somewhat.
Operating earnings amounted to SEK 3.4 million (8.3), which correspond to an operating margin of 4.6% (11.5). The decrease is related to higher operating expenses related to hiring of staff, mainly in the R&D and sales areas.
The financial net amounted to SEK 0.6 million (1.4). The decrease is mainly attributable to translation differences on intra Group balances and revaluation effects on bank balances held in foreign currencies.
Earnings before tax amounted to SEK 4.1 million (9.7), which corresponds to a profit margin of 5.4% (13.5).
Net income amounted to SEK 12.5 million (9.3) resulting in a Net Profit margin of 16.7% (12.9). A positive tax adjustment with the net effect of SEK 8.4 million has been made for capitalized loss carry forwards.
Net Sales for the six months period amounted to SEK 151.7 million (138.9), which is an improvement of 9.2% over last year. In comparable currencies the growth amounts to 7.3%. There were no significant effects on Net Sales from revaluation of the accounts receivables stock.
The EMEA region accounted for SEK 100.2 million (95.4), Americas SEK 31.2 million (35.0) and APAC SEK 20.2 million (8.4).
Sales by business area are distributed between Broadcast & Media 79% (64), DTT 21% (28) and IPTV/CATV 0% (8).
Hardware sales amounted to SEK 107.2 million (101.2), support and service revenue SEK 24.5 million (22.9) and software licenses SEK 18.1 million (13.8).
As shown in the condensed income statement on page 11, the Gross margin is 60.9% (59.6).
Operating earnings amounted to SEK 8.6 million (11.2), which correspond to an Operating Margin of 5.7% (8.1).
The financial net amount to SEK 0.7 million (2.3).
Earnings before tax amounted to SEK 9.3 million (13.6) and the corresponding profit margin amounts to 6.1% (9.8)
Net Income amounted to SEK 17.7 million (14.1). A positive tax adjustment with the net effect of SEK 8.4 has been made for capitalization of loss carry forwards.
Cash flow in the second quarter amounted to SEK 14.6 million (-25.8). The strong Q2 cash flow is mainly related to collections partially offset by inventory build-up of safety stock.
Cash flow for the six month period amounted to SEK 3.6 million (-45.3). The cash flow is mainly derived from improved collections, increased current liabilities but partially offset by build-up of safety stock.
Liquid funds at the end of the period totaled SEK199.8 million (190.6).
Total shareholders' equity amounted to SEK 509.7 million (454.7) with a resulting equity ratio of 85.4% (86.6).
Second quarter investments in tangible assets amounted to SEK 0.1 million (0.9) and depreciation of tangible assets amounted to SEK 0.3 million (0.2). Investments in other intangible assets amount to SEK 2.4 million (0). Capitalization of development expenditures totaled SEK 16.8 million (15.5). Depreciation of capitalized development expenditures totaled SEK 9.8 million (6.7).
Investments in tangible assets for the six month period amounted to SEK 0.3 million (1.0) and depreciation of tangible assets amounted to SEK 0.6 million (0.4). Investments in other intangible assets amounted to SEK 2.4 million and depreciation amounted to SEK 0.5 million (0). Capitalization of development expenditures amounted to SEK 35.7 million (31.5) and depreciation of capitalized development expenditures amounted to SEK 18.0 million (13.2)
At the end of the period, net book value of capitalized development expenditures amounted to SEK 174.4 million (139.9).
At the end of the period Net Insight had 155 (138) employees. The parent company Net Insight AB had 145 (129) employees, Net Insight Intellectual Property AB 5 (4) and the US subsidiary Net Insight Inc. had 5 (5) employees.
The parent company's net sales during the second quarter amounted to SEK 101.9 million (94.9). Net income amounted to SEK 20.6 million (13.5). During the quarter tax loss carried forwards has been booked giving a net positive tax effect of SEK 14.5 million. Sales for the six month period amount to SEK 199.5 million (183.2) and Net Income to a loss of SEK 40.9 million (21.8). The loss relates to the first quarter adjustment regarding Group internal charges for development expenditures, which resulted in a one-time charge affecting the Net Income by SEK 68.3 million. This adjustment does not affect over-all Group results
Remaining tax losses carried forwards amount to SEK 179 million.
Net Insight's operation and results are impacted by a number of external and internal factors. A continuous process identifies existing risks and assesses how each risk shall be managed and mitigated.
The risks to which, the company is exposed are divided into market related risks (including competition, technology development, political risks), operational risks (including product reliability, intellectual property rights, litigation and customer dependence) and financial risks.
No additional significant risks or uncertainties than those described in the annual report 2011 have developed in the second quarter.
For a complete description of the Company's risk analysis and risk management, see page 23 in the 2011 Annual report.
Based on the last three fiscal years, there has been a relatively weak seasonality pattern where Net Sales in the first quarter amount to 23% of annual Net Sales and the fourth quarter amount to 27% of annual sales and the second and third quarter amount to 25% of annual sales respectively.
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | |
|---|---|---|---|---|---|---|---|---|
| 2012 | 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 | |
| Net sales | 75 038 | 76 627 | 80 303 | 75 367 | 72 236 | 66 618 | 88 060 | 67 644 |
| Profit/loss after financial items | 4 068 | 5 254 | 16 503 | 17 008 | 9 745 | 3 815 | 16 293 | 9 580 |
| Earnings per share, SEK | 0,03 | 0,01 | 0,06 | 0,04 | 0,02 | 0,01 | 0,05 | 0,03 |
| Cash flow from operations per share, SEK | 0,04 | -0,03 | 0,00 | 0,01 | -0,12 | -0,05 | 0,08 | -0,01 |
| Return on capital employed (%) | 0,8% | 1,1% | 3,4% | 3,7% | 2,2% | 0,9% | 3,8% | 2,3% |
| Return on equity (%) | 2,5% | 1,1% | 4,5% | 3,1% | 2,1% | 1,1% | 4,4% | 2,7% |
| Equity per share, SEK | ||||||||
| - before dilution, SEK | 1,31 | 1,27 | 1,26 | 1,20 | 1,17 | 1,14 | 1,13 | 1,08 |
| - after dilution, SEK | 1,31 | 1,27 | 1,26 | 1,20 | 1,17 | 1,14 | 1,13 | 1,08 |
| Q2 | Q2 | Jan-Jun | Jan-Jun Q3'11-Q2'12 | Fully year | ||
|---|---|---|---|---|---|---|
| Amount in SEK thousands | 2012 | 2011 | 2012 | 2011 | 12 months | 2011 |
| Net sales | 75 038 | 72 236 | 151 665 | 138 855 | 307 334 | 294 524 |
| Cost of goods & service sold | -29 421 | -27 990 | -59 251 | -56 095 | -115 508 | -112 352 |
| Gross earnings | 45 617 | 44 246 | 92 414 | 82 760 | 183 543 | 182 172 |
| Sales and marketing expenses | -24 967 | -21 947 | -51 719 | -44 335 | -99 302 | -91 918 |
| Administration expenses | -7 803 | -7 206 | -14 595 | -15 228 | -26 732 | -27 365 |
| Development expenses | -9 424 | -6 745 | -17 527 | -11 968 | -25 624 | -20 065 |
| Operating earnings | 3 423 | 8 348 | 8 573 | 11 229 | 40 168 | 42 824 |
| Net financial items | 645 | 1 397 | 748 | 2 331 | 2 664 | 4 247 |
| Earnings before tax | 4 068 | 9 745 | 9 321 | 13 560 | 42 832 | 47 071 |
| Tax | 8 420 | -405 | 8 420 | 510 | 10 767 | 2 857 |
| Net income Net income for the period attributable to the stockholders of |
12 488 | 9 340 | 17 741 | 14 070 | 53 599 | 49 928 |
| the parent company | 12 488 | 9 340 | 17 741 | 14 070 | 53 599 | 49 928 |
| Earnings/loss per share, based on net profit attributable to the parent company's shareholders during the period (in SEK per share) |
||||||
| Earnings per share before dilution | 0,03 | 0,02 | 0,05 | 0,04 | 0,11 | 0,13 |
| Earnings per share after dilution | 0,03 | 0,02 | 0,05 | 0,04 | 0,11 | 0,13 |
| 0,00 | ||||||
| Average number of shares in thousands before dilution | 389 933 | 389 933 | 389 933 | 389 933 | 389 933 | 389 933 |
| Amount in SEK thousands | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Net income | 12 488 | 9 340 | 17 741 | 14 070 | 53 599 | 49 928 | ||||
| Other comprehensive income | ||||||||||
| Exchange rate differences | -302 | 9 | 5 | -494 | 638 | 139 | ||||
| Total other comprehensive income, net after tax | -302 | 9 | 5 | -494 | 638 | 139 | ||||
| Total comprehensive income for the period Total comprehensive income for the period attributable to the |
12 186 | 9 349 | 17 746 | 13 576 | 54 237 | 50 067 | ||||
| stockholders of the parent company | 12 186 | 9 349 | 17 746 | 13 576 | 54 237 | 50 067 |
Average number of shares in thousands after dilution 389 933 389 933 389 933 389 933 389 933 389 933
| Q2 | Q2 | Jan-Jun | Jan-Jun Q3´11-Q2´12 | Full year | ||
|---|---|---|---|---|---|---|
| Amount in SEK thousands | 2012 | 2011 | 2012 | 2011 | 12 months | 2011 |
| Ongoing operations | ||||||
| Net income before tax | 4 068 | 9 745 | 9 321 | 13 560 | 42 832 | 47 071 |
| Depreciation | 10 416 | 7 149 | 19 153 | 14 047 | 34 562 | 29 456 |
| Other items not affecting liquidity | 311 | -1 991 | 2 441 | -275 | 3 156 | 440 |
| Cash flow from ongoing operations | ||||||
| before change in working capital | 14 795 | 14 903 | 30 915 | 27 332 | 80 550 | 76 967 |
| Change in working capital | ||||||
| Increase-/decrease+ in inventories | -3 897 | -2 044 | -10 916 | -12 513 | -6 528 | -8 125 |
| Increase-/decrease+ in receivables | 18 550 | -3 397 | 12 209 | -7 085 | -8 651 | -27 945 |
| Increase+/decrease- in current liabilities | 4 375 | -18 843 | 9 649 | -20 565 | 19 174 | -11 040 |
| Cash flow from ongoing operations | 33 823 | -9 381 | 41 857 | -12 831 | 84 545 | 29 857 |
| Investment activity | ||||||
| Acquisitions of intangible fixed assets | -19 219 | -15 484 | -38 122 | -31 464 | -72 664 | -66 006 |
| Acquisitions of tangible fixed assets | -59 | -878 | -256 | -1 017 | -2 693 | -3 454 |
| Acquistion of net assets | 0 | 0 | 0 | 0 | 0 | 0 |
| Increase-/decrease+ in long-term receivables | 34 | -8 | 139 | 24 | 71 | -44 |
| Cash flow from investment activity | -19 244 | -16 370 | -38 239 | -32 457 | -75 286 | -69 504 |
| Increase/decrease in liquid funds | 14 579 | -25 763 | 3 618 | -45 288 | 9 259 | -39 647 |
| Liquid funds, opening balance | 185 249 | 216 332 | 196 210 | 235 857 | 190 569 | 235 857 |
| Liquid funds, closing balance | 199 828 | 190 569 | 199 828 | 190 569 | 199 828 | 196 210 |
| Amount in SEK thousands | Jun 30, 2012 | Jun 30, 2011 | Dec 31, 2011 |
|---|---|---|---|
| ASSETS | |||
| Intangible assets | |||
| Capitalized expenditure for development | 174 384 | 139 889 | 158 871 |
| Goodwill | 4 354 | 4 354 | 4 354 |
| Other intangible assets | 3 234 | 1 724 | 1 291 |
| Tangible fixed assets | |||
| Equipment | 3 631 | 2 279 | 4 075 |
| Equipment for leasing | 0 | 0 | 0 |
| Financial assets | |||
| Deferred tax asset | 40 351 | 29 585 | 31 932 |
| Deposits paid, long-term | 258 | 329 | 397 |
| Total fixed assets | 226 212 | 178 160 | 200 920 |
| Current assets | |||
| Inventory | 47 269 | 41 540 | 36 353 |
| Customer receivables | 110 380 | 104 123 | 123 896 |
| Other receivables | 12 822 | 10 900 | 11 513 |
| Cash and bank balances | 199 828 | 190 569 | 196 210 |
| Total current assets | 370 299 | 347 132 | 367 972 |
| Total assets | 596 511 | 525 292 | 568 892 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | |||
| Shareholders' equity | |||
| Restricted shareholders' equity | |||
| Share capital | 15 597 | 15 597 | 15 597 |
| Other contributed capital | 1 192 727 | 1 192 727 | 1 192 727 |
| Translation difference | -1 515 | -2 155 | -1 520 |
| Accumulated deficit | -697 122 | -751 483 | -715 088 |
| Total shareholders' equity | 509 687 | 454 686 | 491 716 |
| Long-term liabilities | |||
| Long-term liabilities | 0 | 0 | 0 |
| Provisions | 4 154 | 5 958 | 7 771 |
| Total long-term liabilities | 4 154 | 5 958 | 5 001 |
| Current liabilities | |||
| Accounts payable | 30 300 | 18 763 | 26 130 |
| Other liabilities | 52 370 | 45 885 | 43 275 |
| Total current liabilities | 82 670 | 64 648 | 69 405 |
| Total liabilities and equity | 596 511 | 525 292 | 568 892 |
| Other | Total | ||||
|---|---|---|---|---|---|
| Share | contributed | Translation | Accumulated | shareholders' | |
| Amount in SEK thousands | capital | capital | difference | deficit | equity |
| 2011-01-01 | 15 597 | 1 192 727 | -1 659 | -766 091 | 440 574 |
| Total comprehensive income | 0 | 0 | -496 | 14 070 | 13 574 |
| New shares issued - employee stock options | 0 | 0 | 0 | 0 | 0 |
| Employee stock option program: | |||||
| Value of employees' services | 0 | 0 | 0 | 538 | 538 |
| 2011-06-30 | 15 597 | 1 192 727 | -2 155 | -751 483 | 454 686 |
| 2011-07-01 | |||||
| Total comprehensive income | 0 | 0 | 635 | 35 858 | 36 493 |
| New shares issued - employee stock options | 0 | 0 | 0 | 0 | 0 |
| Employee stock option program: | |||||
| Value of employees' services | 0 | 0 | 0 | 537 | 537 |
| 2011-12-31 | 15 597 | 1 192 727 | -1 520 | -715 088 | 491 716 |
| 2012-01-01 | 15 597 | 1 192 727 | -1 520 | -715 088 | 491 716 |
| Total comprehensive income | 0 | 0 | 5 | 17 741 | 17 746 |
| Employee stock option program: | |||||
| Value of employees' services | 0 | 0 | 0 | 225 | 225 |
| 2012-06-30 | 15 597 | 1 192 727 | -1 515 | -697 122 | 509 687 |
| Q2 2012 | Q2 2011 | Jan-Jun 2012 | Jan-Jun 2011 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Amount in SEK million | EMEA APAC | AM | Total EMEA APAC | AM | Total EMEA APAC | AM | Total EMEA APAC | AM | Total | |||||||
| Net Sales | 46 | 12 | 17 | 75 | 40 | 5 | 27 | 72 | 101 | 20 | 31 | 152 | 90 | 8 | 41 | 139 |
| Regional Contribution | 12 | 2 | 6 | 19 | 9 | 0 | 9 | 18 | 27 | 3 | 9 | 39 | 19 | -1 | 14 | 32 |
| Regional Contribution (%) | 25% | 14% | 35% | 25% | 22% | -2% | 31% | 25% | 27% | 15% | 29% | 26% | 21% | -9% | 33% | 23% |
| Adjusted for R&D Depreciation | 6 | 2 | 2 | 10 | 4 | 0 | 3 | 7 | 12 | 3 | 3 | 18 | 9 | 1 | 4 | 13 |
| Adjusted Regional Contribution | 18 | 3 | 8 | 29 | 13 | 0 | 11 | 25 | 39 | 5 | 12 | 56 | 27 | 0 | 17 | 45 |
| Adjusted Regional Contribution (%) | 38% | 28% | 46% | 38% | 34% | 8% | 41% | 31% | 39% | 25% | 39% | 37% | 30% | 0% | 43% | 32% |
Regional Contribution is defined as Gross earnings less Sales and Marketing expenses. AM is short for Americas.
| Jan-Jun | Jan-Jun | ||||||
|---|---|---|---|---|---|---|---|
| Amount in SEK, millions | Q2 2012 | Q2 2011 | Q3 2011 | Q4 2011 | Q1 2012 | 2012 | 2011 |
| Net Sales | 75,0 | 72,2 | 75,4 | 80,3 | 76,6 | 151,6 | 138,8 |
| Gross earnings | 45,6 | 44,2 | 49,6 | 49,9 | 46,8 | 92,4 | 82,7 |
| Gross margin | 60,8% | 61,3% | 65,8% | 62,1% | 61,1% | 60,9% | 59,6% |
| Operating earnings | 3,4 | 8,3 | 15,5 | 16,1 | 5,2 | 8,6 | 11,2 |
| Operating margin | 4,6% | 11,5% | 20,6% | 20,0% | 6,8% | 5,7% | 8,1% |
| Pretax profit | 4,1 | 9,7 | 17,0 | 16,5 | 5,3 | 9,4 | 13,6 |
| Net income | 12,5 | 9,3 | 14,3 | 21,5 | 5,3 | 17,8 | 14,0 |
| Net margin | 16,7% | 12,9% | 19,0% | 26,8% | 6,9% | 11,7% | 10,1% |
| Q2 | Q2 | Jan-Jun | Jan-Jun | Q3'11-Q2'12 | Full Year | |
|---|---|---|---|---|---|---|
| Amount in SEK thousands | 2012 | 2011 | 2012 | 2011 | 12 months | 2011 |
| Net Sales | 101 850 | 94 944 | 199 499 | 183 224 | 397 486 | 381 211 |
| Cost of goods & services sold | -35 566 | -45 825 | -30 362 | -91 602 | -126 457 | -187 697 |
| Gross earnings | 66 284 | 49 119 | 169 137 | 91 622 | 271 029 | 193 514 |
| Sales and marketing expenses | -24 545 | -16 504 | -50 036 | -37 714 | -98 987 | -86 665 |
| Administration expenses | -8 687 | -11 566 | -15 477 | -19 586 | -23 255 | -27 364 |
| Development expenses | -27 221 | -6 746 | -159 074 | -11 968 | -167 171 | -20 065 |
| Operating earnings | 5 831 | 14 303 | -55 450 | 22 354 | -18 384 | 59 420 |
| Net financial items | 334 | 1 055 | 92 | 1 720 | -137 367 | -135 739 |
| Earnings before tax | 6 165 | 15 358 | -55 358 | 24 074 | -155 751 | -76 319 |
| Tax | 14 450 | -1 897 | 14 450 | -2 282 | 15 396 | -1 336 |
| Net income | 20 615 | 13 461 | -40 908 | 21 792 | -140 355 | -77 655 |
| Amount in SEK thousands | Jun 30, 2012 Jun 30, 2011 Dec 31, 2011 | ||
|---|---|---|---|
| ASSETS | |||
| Intangible assets | |||
| Capitalized expenditure for development | 0 | 139 889 | 158 871 |
| Other intangible assets | 3 234 | 1 724 | 1 291 |
| Tangible fixed assets | |||
| Equipment | 3 631 | 2 279 | 4 075 |
| Financial assets | |||
| Shares in group companies | 117 427 | 18 398 | 18 398 |
| Deferred tax asset | 31 559 | 23 297 | 17 109 |
| Deposits paid, long-term | 258 | 329 | 397 |
| Total fixed assets | 156 109 | 185 916 | 200 141 |
| Current assets | |||
| Inventory | 47 269 | 41 540 | 36 353 |
| Customer receivables | 110 380 | 104 124 | 123 896 |
| receivables, subsidiaries | 482 471 | 589 892 | 429 097 |
| Other receivables | 12 446 | 11 138 | 13 390 |
| Cash and bank balances | 137 546 | 125 034 | 123 670 |
| Total current assets | 790 112 | 871 728 | 726 406 |
| Total assets | 946 221 | 1 057 644 | 926 547 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | |||
| Shareholders' equity | |||
| Restricted shareholders' equity | |||
| Share capital | 15 597 | 15 597 | 15 597 |
| Other contributed capital | 112 822 | 112 822 | 112 822 |
| Non-restricted equity/Accumulated deficit | 667 182 | 786 779 | 707 865 |
| Total shareholders' equity | 795 601 | 915 198 | 836 284 |
| Long-term liabilities | |||
| Other provisions | 4 017 | 5 333 | 7 771 |
| Total long-term liabilities | 4 017 | 5 333 | 7 771 |
| Current liabilities | |||
| Accounts payable | 29 978 | 18 687 | 25 839 |
| Liabilitis, subsidiaries | 66 683 | 74 562 | 16 618 |
| Other liabilities | 49 942 | 43 864 | 40 035 |
| Total current liabilities | 146 603 | 137 113 | 82 492 |
| Total liabilities and equity | 946 221 | 1 057 644 | 926 547 |
This interim report has been prepared in accordance with IAS 34 Interim financial Reporting and applicable rules in the Annual Accounting Act. The interims report for the parent company was prepared in accordance with Chapter 9 of the annual Accounts Act, interim report. The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2011, as described in those annual financial statements.
The company's auditors have not examined this report.
Interim Report January – September 24 October, 2012
The Board of Directors and the CEO certify that the Interim report for the period January - June 2012 gives a true and fair overview of the Parent Company Net Insight AB and the Group's operations, their financial position and results of operations, and describes significant risks and uncertainties facing the Parent Company and other companies in the Group.
Net Insight's business concept is to develop, market and sell products to public and private network owners that need high-quality transport for media-rich traffic. Net Insight's customers benefit from the opportunity to introduce new revenue-generating services while reducing their capital expenditures and operating costs. Revenue is generated through direct and indirect sales of products and licenses, support and maintenance services, installation services and training.
Net Insight's objective is to grow faster than the market with good profitability. Net Insight's growth strategy is based on five pillars: segment focus, geographical expansion, reseller partnerships, partnerships with the global telecom equipment providers, and partnerships with service providers.
Net Insight benefits from the general increase in video traffic such as higher consumption of mobile and broadband TV (OTT), adoption of remote workflows and production as well a wider coverage of live events. An important driver is also the conversion to new TV formats in the broadcast and media industry.
Stockholm, July 20, 2012
Lars Berg Bernt Magnusson Styrelseordförande Board member
Board member Board member
Clifford H Friedman Anders Harrysson Board member Board member
Fredrik Trägårdh Board member and Chief Executive Officer
Arne Wessberg Gunilla Fransson
Fredrik Trägårdh, CEO Net Insight AB Tel: +46 (0) 8-685 04 00, email: [email protected]
Thomas Bergström, CFO, Net Insight AB Tel: +46 (0) 8-685 06 05, email: [email protected]
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 Insights Nimbra™ 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.
World class customers run mission critical video services over Net Insight products for more than 100 million people in more than 50 countries. Net Insight is quoted on the NASDAQ OMX, Stockholm.
For more information, visit www.netinsight.net
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