Quarterly Report • May 13, 2009
Quarterly Report
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Net Insight delivers the world's most efficient and scalable optical transport solution for Broadcast and 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™ 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 media services over Net Insight products for more than 100 million people in more than 35 countries. Net Insight is quoted on the Stockholm Stock Exchange.
For more information, visit www.netinsight.net
Net Insight AB (publ), Corporate Reg. No. 556533-4397
Despite the global market downturn we are able to report healthy earnings and profitability for the first quarter. During the quarter we have won new customers and our existing customer base has continued to expand their Nimbra based networks. All in all, Net Insight is well positioned for the future with a solid customer base, strong offering and healthy financial position.
In the EMEA region substantial extensions to our customers' digital terrestrial TV networks have been made, including a large and important country in Eastern Europe. Rundfunk-Anstalt Südtirol enhanced their North Italian network and we improved our market position in Italy when Telespazio deployed a multiservice contribution network based on our Nimbra platform.
Our European customer base, and the expansions they make to their existing installed base, is a fundamental contributor to our business. At the same time, this customer base invests in new services and applications, which verify the flexibility and strong multiservice capabilities of our Nimbra platform. An important win for Net Insight during the first quarter was achieved when TeliaSonera International Carrier chose to expand their Nimbra network to support live sport broadcast transmissions of Sweden's premier football league, Allsvenskan. Live event contribution networks, have become an important application area and is one example of how our customers can reap the full benefits of the Nimbra solution.
During the first quarter, we continued our establishment in the Middle East region in cooperation with partners and with our first own participation at the region's major industry exhibition CabSat. At the end of 2008 we won a first small order for a larger TV distribution and media network in a country in Middle East and this is a good stepping-stone for us to win further business in the region.
We have a strong position in the market for high quality broadcast and media networks in North America where our customer base has continued to expand and upgrade their networks during the first quarter. We are also establishing a foothold within the telco carrier market and our enhanced IP/Ethernet transport and switching product offering, which were recently introduced, is now in use for IPTV distribution services.
We see new business opportunities in Latin America and we currently are stepping up our market activities as part of our strategy to expand geographically within our prioritized segments.
In the Asia Pacific region our market development continues with new and existing partners adding value to our offering and expanding our market reach. The 2008 Beijing Olympic Games created market traction for Net Insight and paved the ground for some initial orders in the region during the second part of 2008. This positive momentum continued into the first quarter 2009 when we won another order for a digital terrestrial TV and mobile TV network in Korea. However, we also experience some of the effects of the global financial turmoil that have affected sales during the first quarter.
Net Insight continued to win new orders for digital terrestrial TV and mobile TV networks. A Korean broadcaster is deploying a terrestrial TV distribution network combining mobile TV and digital terrestrial TV services in South Korea based on the Nimbra platform. The network will carry mobile TV and DTT services including HD content as well as various signals for remote control and data from a studio location to transmitter sites. The order was received in cooperation with Net Insight´s partner Sanam Technology Inc.
Continuous extensions are made to the installed base of digital terrestrial TV networks and upgrades are made to Net Insight's unique Time Transfer feature for GPS-free time synchronization. An East European country continued with their expansion for the next phase of the Digital Terrestrial TV distribution network. The DTT network will distribute uncompressed and compressed video, provide scalable multicast capabilities and include the Time Transfer feature. The expansion order was received in cooperation with a systems integrator partner that provides engineering, design, installation and support services across countries in Eastern Europe and Central Asia.
In the beginning of 2007, Rundfunk-Anstalt Südtirol selected Net Insight's Nimbra platform for a small initial phase of its DTT network rollout. During the first quarter 2009 RAS upgraded and extended the network with additional transmitter sites, now reaching about 30 transmitters in the area of Südtriol. Net Insight's Nimbra Vision was also implemented for efficient network management and the unique Time Transfer feature for GPS-free time synchronization was installed in the network.
During the period expansions have been made to the installed base of broadcast and media transport networks. In the US, HTN continued the expansion of its extensive US network to support new customers and EBU substantially expanded its global Eurovision network into more locations in Asia.
The Nimbra platform's strong capabilities to efficiently manage multiservice contribution networks were further reinforced in the first quarter. Telespazio is a new customer in Italy that selected the Nimbra platform to extend the capabilities of its Broadcast Services, by linking several sites in Italy with mission critical video services such as ASI video and Ethernet data.
Net Insight's solutions have proven its efficiency and many live sports contribution networks, including the 2008 Beijing Olympics and at stadiums for North American pro sports. Another important order for this application area was won during the first quarter when TeliaSonera International Carrier selected Net Insight's Nimbra platform to support live sport broadcast transmissions from Sweden's premier football league, Allsvenskan. TeliaSonera incorporated the platform into its contribution network to transport uncompressed standard-definition video from all 16 arenas in the Swedish league to a central production and editing facility in Stockholm.
Net Insight continue to develop the partner network to further support sales growth and provide local support to customers.
In the first quarter, Net Insight signed a reseller agreement with Nera Telecommunications Ltd in South East Asia. Under the non-exclusive business partner agreement, NeraTel will distribute Net Insight´s Nimbra products in the South East Asian market. Headquartered in Singapore, Nera Telecommunications has twelve offices in ten countries and more than 500 employees in the region. Initially the joint Net Insight and NeraTel solutions will be marketed in Thailand, Malaysia, Singapore, Indonesia, and the Philippines.
At CabSat in Dubai, Net Insight participated for the first time with its own exhibition stand including live demo of the Nimbra product portfolio.
In support of the ongoing market activities towards the DTT market Net Insight participated at the "DVB World Forum" in Berlin and "Digital Broadcasting Switchover Forum" in South Africa. During the conference "Digital Switchover Strategies 09" in London, one of Net Insight's most important customers Norkring received the award "Best technical solution" for the Norwegian Nimbra based DTT network. Norkring received the prize for best technical solution based upon its successful roll-out of one of Europe's largest and most complex digital terrestrial TV network.
In the APAC region, Net Insight exhibited at the ABU Digital Broadcasting Symposium in Kuala Lumpur and in the US Net Insight exhibited and made a presentation about "Media networking in an IP centric world" at the VSF/Vidtrans conference.
After the end of the period, the Nimbra product portfolio was supplemented with additional switching and transport functionality for enhanced handling of IP/Ethernet
New product introductions
traffic.
platform.
At the NAB exhibition in April, Net Insight introduced new functionality to the Nimbra
The 3 x IP/Ethernet Trunk Module for the Nimbra One and Nimbra 300 series enhances multi-service transport over any network architecture. This new module provides a transport solution featuring multi-service operation, optional intermediate switching and signal regeneration for enhanced QoS preservation. With the new module, operators now have the option to create next generation IP media networks over existing IP, SDH/SONET, WDM or fiber.
The new Ethernet Switching Feature for the Nimbra™ 600 series 8 x Gigabit Ethernet Access Module delivers an unprecendented level of flexibility that allows customers to transport any service to any network location. Service providers, network aggregators and operators can use the new Ethernet Switching Feature to form virtual networks. This can be used for any application, such as QoS multicast transport of IPTV/CATV traffic, distributed office LAN applications, file transfers or live broadcast video, and can be combined with native video/audio/telecom services. North American Wisconsin Independent Network (WIN) is currently using the new switching feature to enhance Ethernet services for its IPTV network.
The Board is pleased with the progress during the first quarter and remains confident that the positive development will continue, with quarterly fluctuations. As of the end of this year, the Board will cease to give quarterly outlooks.
Net sales for the first quarter amounted to SEK 60.4 million (64.7). Positive currency effects of SEK 3.6 million have impacted net sales. Hardware revenue decreased by 23% in the quarter mainly related to lower volumes in region APAC. Software licenses increased by 11% mainly related to licenses for time transfer. Support and service revenue grew by 33% in the quarter related to an increase of maintenance agreements in the EMEA region.
The EMEA region accounted for SEK 46.5 million (27.6) of total sales. This means the EMEA region has recovered the temporary decrease in previous year related to the completion of the main project with Norkring in 2007. The North America region showed a slight downturn in sales to SEK 12.7 million (13.7) in the wake of the strong fourth quarter 2008. In the APAC region sales dropped to SEK 1.2 million (23.4) which is explained by the large order with Korea Telecom last year. Net Insight's business activity in the region continued at a good pace, however, the time horizon from initial discussions to a firm order was extended in the quarter compared to previous periods but there are no indications of lost business in the quarter. The Broadcast & Media Networks segment represented 53% (83) of total sales, Digital Terrestrial TV & Mobile-TV Networks 45% (17) and IPTV/CATV 2% (1%).
| Q1 | Q1 | Q2 | Q3 | Q4 | Q208-Q109 | Full year | |
|---|---|---|---|---|---|---|---|
| Net sales per region (MSEK) | 2009 | 2008 | 2008 | 2008 | 2008 | 12 months | 2008 |
| EMEA | 46.5 | 27.6 | 36.8 | 32.3 | 40.0 | 156.6 | 136.5 |
| North America | 12.7 | 13.7 | 25.9 | 15.2 | 24.9 | 78.7 | 80.1 |
| APAC | 1.2 | 23.4 | 10.5 | 18.7 | 5.2 | 35.6 | 57.6 |
| Total | 60.4 | 64.7 | 73.2 | 66.2 | 70.1 | 269.9 | 274.2 |
Gross margin continued to be strong. Supported by higher sales of software licenses, support and services and currency gains gross margin climbed to 75.7% (69.0).
Operating expenses for the quarter amounted to SEK 35.4 million (39.6). Effective from 1 January the depreciation period for capitalized development expenses is extended from 3 years to 5 years based on a reassessment concerning the expected useful lifetime of the products. This extension has affected the results positively by SEK 6.4 million in the first quarter compared to if three years depreciation period would have been applied. Capitalization of development expenditures totaled SEK 12.7 million (12.3). Depreciation of capitalized development expenditures totaled SEK 5.3 million (11.3). In the first quarter eight resources have been added to sales, professional services and development. Compared to first quarter previous year the average number of employees has increased from 100 to 111.
Operating earnings for the first quarter amounted to SEK 10.3 million (5.5).
The financial net amounted to SEK –0.3 million (0.7). The negative financial net is explained by negative currency translation differences on intra group balances and euro and us dollar balances at the end of the reporting period.
Net income before tax amounted to SEK 10.0 million (6.2).
Net income after tax amounted to SEK 7.2 million (6.2). As a result of the capitalized deferred tax asset of SEK 27.1 million in the annual accounts 2008 and a positive result Net Insight reports a tax expense of SEK 2.8 million for the first quarter. This tax expense has no cash flow effect.
| Cash flow and financial position |
Liquid funds at the end of the period totaled SEK 172.7 million (105.8). Cash flow from ongoing operations for the first quarter amounted to SEK 11.6 million (-11.7) whereas total cash flow amounted to SEK 20.9 million (-22.4). In the quarter Net Insight's largest owner Constellation Growth Capital redeemed all their outstanding warrants equivalent to 10 042 440 new shares which generated SEK 22.9 million in cash to the company. |
|---|---|
| Shareholders' equity amounted to SEK 305.3 million (189.5) with an equity ratio of 79.4% (72.7%). |
|
| Investments | Investments in tangible assets during the first quarter amounted to SEK 0.7 million (0.4). Depreciation of tangible assets amounted to SEK 0.3 million (0.8). Capitalized development expenditures for the first quarter, reported as intangible assets, amounted to SEK 12.7 million (12.3). Depreciation of capitalized development expenditures was SEK 5.3 million (11.3). At the end of the period, net book value of capitalized development expenditures amounted to SEK 75.3 million (70.2). |
| Employees | At the end of the period Net Insight had 116 (99) employees. The parent company Net Insight AB had 109 (93) employees, of which four employees are based in Singapore. The US subsidiary Net Insight Inc. had 7 (6) employees. |
| Parent company | The parent company's net turnover was SEK 65.9 million (72.9). Net income amounted to SEK 7.0 million (7.4). Liquid funds amounted to SEK 171.4 million (104.1). |
| Risk and sensitivity analysis |
Net Insight's operation and results are impacted by a number of external and internal factors. A continuous process identifies all 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 liability, intellectual property rights, litigation, customer dependence) and financial risks (including predominately currency exposure). |
No additional significant risks or uncertainties than those described in the annual report 2008 have developed in the first quarter. However, the financial crisis and the global economic downturn have meant that business decisions have been postponed in the first quarter particularly in the APAC region.
For a complete description of the Company's risk analysis and risk management, please see page 27 and 37 in the 2008 Annual report.
Net income including deferred tax asset
Note1: Adjusted for other operating revenue of SEK 13.5 million, net income in Q4 2006 was SEK 3.4 million. Note2: Adjusted for other operating revenue of SEK 10.0 million, net income in Q4 2007 was SEK 8.3 million. Note3: Including a deferred tax asset of 27,1 MSEK
| Q1 | Q1 | Q208-Q109 | Full Year | |
|---|---|---|---|---|
| Amount in SEK thousands | 2009 | 2008 | 12 months | 2008 |
| Net Sales | 60 406 | 64 744 | 269 967 | 274 305 |
| Cost of goods & services sold | -14 660 | -20 071 | -70 280 | -75 691 |
| Gross earnings | 45 747 | 44 673 | 199 688 | 198 614 |
| Marketing expenses | -17 228 | -16 549 | -67 368 | -66 689 |
| Administration expenses | -7 314 | -5 791 | -27 864 | -26 341 |
| Development expenses | -10 892 | -17 265 | -65 144 | -71 517 |
| Other operating income | 0 | 428 | 3 394 | 3 822 |
| Operating earnings | 10 312 | 5 496 | 42 705 | 37 889 |
| Net financial items | -280 | 666 | 2 027 | 2 973 |
| Earnings before tax | 10 032 | 6 162 | 44 732 | 40 862 |
| Tax | -2 836 | 0 | 24 242 | 27 078 |
| Net income | 7 196 | 6 162 | 68 974 | 67 940 |
| Net income for the period attributable to the stockholders of the | 7 196 | 6 162 | 68 974 | 67 940 |
| parent company | ||||
| 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 | 0,02 | 0,02 | 0,18 | 0,09 |
| Earnings per share after dilution | 0,02 | 0,02 | 0,18 | 0,09 |
| Average number of shares in thousands before dilution | 383 283 | 370 923 | 376 664 | 374 307 |
| Average number of shares in thousands after dilution | 383 283 | 381 883 | 376 664 | 379 481 |
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||||
| Other comprehensive income | ||||
| Exchange rate differences | 488 | 467 | 1 769 | 1 748 |
| Total other comprehensive income | 488 | 467 | 1 769 | 1 748 |
| Total comprehensive income for the period, net after tax | 7 684 | 6 629 | 70 743 | 69 688 |
| Total comprehensive income for the period attributable to the | 7 684 | 6 629 | 70 743 | 69 688 |
| stockholders of the parent company |
| 31 Mar 2009 | 31 Mar 2008 | Q208-Q109 | 31 dec 2008 | |
|---|---|---|---|---|
| Amount in SEK thousands | 3 months | 3 months | 12 months | 12 months |
| Ongoing operations | ||||
| Net income before tax | 10 032 | 6 162 | 44 732 | 40 862 |
| Depreciation | 5 529 | 12 041 | 47 524 | 54 036 |
| Other items not affecting liquidity | 1 055 | 1 832 | 373 | 1 150 |
| Cash flow from ongoing operations | ||||
| before change in working capital | 16 616 | 20 035 | 92 629 | 96 048 |
| Change in working capital | ||||
| Increase-/decrease+ in inventories | 5 171 | -3 823 | -631 | -9 625 |
| Increase-/decrease+ in receivables | -5 730 | -17 379 | -30 622 | -42 271 |
| Increase+/decrease- in current liabilities | -4 441 | -10 493 | 13 378 | 7 326 |
| Cash flow from ongoing operations | 11 616 | -11 660 | 74 754 | 51 478 |
| Investment activity | ||||
| Acquisitions of intangible fixed assets | -12 676 | -12 315 | -44 830 | -44 469 |
| Acquisitions of tangible fixed assets | -694 | -423 | -4 002 | -3 731 |
| Increase-/decrease+ in long-term receivables | -3 | 0 | -175 | -172 |
| Increase+/decrease- in long-term liabilities | -194 | 0 | -831 | -637 |
| Cash flow from investment activity | -13 567 | -12 738 | -49 838 | -49 009 |
| Financing activity | ||||
| New share issue - employee stock option program | 22 897 | 1 967 | 41 972 | 21 042 |
| Cash flow from financing activity | 22 897 | 1 967 | 41 972 | 21 042 |
| Increase/decrease in liquid funds | 20 946 | -22 431 | 66 888 | 23 511 |
| Liquid funds, opening balance | 151 744 | 128 233 | 105 802 | 128 233 |
| Liquid funds, closing balance | 172 691 | 105 802 | 172 690 | 151 744 |
| Amount in SEK thousands | Mars 31, 2009 | Mars 31, 2008 | Dec 31, 2008 |
|---|---|---|---|
| ASSETS | |||
| Fixed assets | |||
| Intangible assets | |||
| Capitalized expenditure for development | 75 285 | 70 224 | 67 864 |
| Goodwill | 4 354 | 4 354 | 4 354 |
| Tangible fixed assets | |||
| Equipment | 4 250 | 3 684 | 3 830 |
| Equipment for leasing | 0 | 4 313 | 0 |
| Financial assets | |||
| Deferred tax asset | 24 242 | 0 | 27 078 |
| Deposits paid, long-term | 362 | 185 | 359 |
| Total fixed assets | 108 493 | 82 760 | 103 485 |
| Current assets | |||
| Inventory | 24 965 | 24 334 | 30 136 |
| Customer receivables | 68 320 | 37 453 | 62 608 |
| Other receivables | 9 838 | 10 352 | 9 820 |
| Cash and bank balances | 172 691 | 105 802 | 151 744 |
| Total current assets | 275 814 | 177 940 | 254 308 |
| Total assets | 384 307 | 260 701 | 357 793 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | |||
| Shareholders' equity | |||
| Restricted shareholders' equity | |||
| Share capital | 15 597 | 14 865 | 15 196 |
| Other contributed capital | 1 199 256 | 1 155 855 | 1 176 497 |
| Translation difference | -242 | -2 945 | -730 |
| Accumulated deficit | -909 293 | -978 267 | -916 489 |
| Total shareholders' equity | 305 318 | 189 508 | 274 474 |
| Long term liabilities | |||
| Long-term liabilities | 1 357 | 2 188 | 1 551 |
| Provisions | 5 472 | 9 531 | 5 168 |
| Total provisions | 6 829 | 11 719 | 6 719 |
| Current liabilities | |||
| Accounts payable | 15 224 | 22 088 | 26 411 |
| Other liabilities | 56 936 | 37 386 | 50 190 |
| Total current liabilities | 72 160 | 59 474 | 76 601 |
| Total liabilities and equity | 384 307 | 260 701 | 357 794 |
| Other | Total | ||||
|---|---|---|---|---|---|
| Share | contributed | shareholders' | |||
| Amount in SEK thousands | capital | capital | Reserves | Net earnings | equity |
| 08-01-01 | 14 828 | 1 153 294 | -2 478 | -984 429 | 181 215 |
| Total comprehensive income | 0 | 0 | 1 748 | 67 940 | 69 688 |
| New shares issued - employee stock options | 368 | 20 674 | 0 | 0 | 21 042 |
| Employee stock option program: | |||||
| Value of employees' services | 0 | 2 529 | 0 | 0 | 2 529 |
| 08-12-31 | 15 196 | 1 176 497 | -730 | -916 489 | 274 474 |
| 09-01-01 | 15 196 | 1 176 497 | -730 | -916 489 | 274 474 |
| Total comprehensive income | 0 | 0 | 488 | 7 196 | 7 684 |
| New shares issued - employee stock options | 402 | 22 495 | 0 | 0 | 22 897 |
| Employee stock option program: | |||||
| Value of employees' services | 0 | 264 | 0 | 0 | 264 |
| 09-03-31 | 15 597 | 1 199 256 | -242 | -909 293 | 305 319 |
| Consolidated condensed income | |||||
|---|---|---|---|---|---|
| statement and key figures, SEK m | Q1 2009 | Q1 2008 | Q2 2008 | Q3 2008 | Q4 2008 |
| Net sales | 60.4 | 64.7 | 73.2 | 66.2 | 70.2 |
| Gross earnings | 45.7 | 44.7 | 52.2 | 49.5 | 52.4 |
| Gross margin | 75.7% | 69.0% | 71.3% | 74.8% | 74.7% |
| Operating earnings | 10.3 | 5.5 | 14.5 | 8.6 | 9.8 |
| Operating margin | 17.1% | 8.5% | 19.9% | 13.0% | 14.0% |
| Pretax profit | 10.0 | 6.2 | 15.8 | 9.1 | 10.4 |
| Net income | 7.2 | 6.2 | 15.8 | 9.1 | 37.5 |
| Net margin | 11.9% | 9.5% | 21.6% | 13.7% | 53.5% |
| Q1 | Q1 | Q208-Q109 | Full Year | |
|---|---|---|---|---|
| Amount in SEK thousands | 2009 | 2008 | 12 months | 2008 |
| Net Sales | 65 963 | 72 850 | 300 825 | 307 712 |
| Cost of goods & services sold | -20 303 | -26 407 | -93 440 | -99 544 |
| Gross earnings | 45 660 | 46 443 | 207 384 | 208 167 |
| Marketing expenses | -17 325 | -16 633 | -67 827 | -67 135 |
| Administration expenses | -7 314 | -5 791 | -28 954 | -27 431 |
| Development expenses | -10 892 | -17 265 | -66 286 | -72 659 |
| Operating earnings | 10 129 | 6 754 | 44 318 | 40 943 |
| Net financial items | -280 | 657 | -7 542 | -6 605 |
| Earnings before tax | 9 849 | 7 411 | 36 775 | 34 337 |
| Tax | -2 836 | 0 | 24 242 | 27 078 |
| Net income | 7 013 | 7 411 | 61 017 | 61 415 |
| Amount in SEK thousands | Mar 31, 2009 | Mar 31, 2008 | Dec 31, 2008 |
|---|---|---|---|
| ASSETS | |||
| Fixed assets | |||
| Intangible assets | |||
| Capitalized expenditures for development | 75 285 | 70 224 | 67 864 |
| Tangible fixed assets | |||
| Equipment | 4 250 | 3 683 | 3 830 |
| Equipment for leasing | 0 | 4 313 | 0 |
| Financial assets | |||
| Shares in group companies | 18 398 | 3 387 | 18 398 |
| Deferred tax asset | 24 242 | 0 | 27 078 |
| Deposits paid, long-term | 362 | 185 | 359 |
| Total fixed assets | 122 537 | 81 792 | 117 529 |
| Current assets | |||
| Inventory | 24 965 | 24 334 | 30 136 |
| Customer receivables | 68 320 | 37 453 | 62 608 |
| Other receivables | 16 751 | 10 288 | 9 706 |
| Receivable other group companies | 0 | 11 749 | 0 |
| Cash and bank balances | 171 379 | 104 141 | 149 880 |
| Total current assets | 281 415 | 187 965 | 252 330 |
| TOTAL ASSETS | 403 952 | 269 757 | 369 859 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | |||
| Shareholders' equity | |||
| Restricted shareholders' equity | |||
| Share capital | 15 597 | 14 865 | 15 196 |
| Other contributed capital | 170 648 | 159 581 | 180 224 |
| Group contribution | 8 812 | 2 092 | 8 812 |
| Non-restricted equity/Accumulated deficit | 100 762 | 7 411 | 61 415 |
| Total shareholders' equity | 295 819 | 183 949 | 265 646 |
| Long term liabilities | |||
| Long term liabilities | 1 357 | 2 188 | 1 551 |
| Guarantee provisions | 5 472 | 9 531 | 5 168 |
| Total long-term liabilities and provisions | 6 829 | 11 719 | 6 719 |
| Current liabilities | |||
| Accounts payable | 15 224 | 22 088 | 26 411 |
| Liabilities, subsidaries | 30 775 | 15 898 | 22 513 |
| Other liabilities | 55 305 | 36 103 | 48 571 |
| Total liabilities | 101 304 | 74 089 | 97 495 |
| TOTAL LIABILITIES AND SHAREHOLDERS´ EQUITY | 403 952 | 269 757 | 369 859 |
This interim report has been prepared in accordance with International Financial Reporting Standards (IFRS) and the structure follows IAS 34 Interim Financial Reporting. Except as described below, the accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2008, as described in those annual financial statements. The following new standards and amendments to standards are mandatory for the first time for the financial year beginning 1 January 2009.
IAS 1 (revised), Presentation of financial statements. The revised standard prohibits the presentation of items of income and expenses (that is 'non-owner changes in equity') in the statement of changes in equity, requiring 'non-owner changes in equity' to be presented separately from owner changes in equity. All 'non-owner changes in equity' are required to be shown in a performance statement. Entities can choose whether to present one performance statement (the statement of comprehensive income) or two statements (the income statement and statement of comprehensive income). The group has elected to present an income statement and a statement of comprehensive income.
IFRS 8, Operating segments. IFRS 8 replaces IAS 14, 'Segment reporting'. It requires a 'management approach' under which segment information is presented on the same basis as that used for internal reporting purposes. This has resulted in that the following segments are presented in the financial statement, EMEA, North America and APAC. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker has been identified as the Chief Executive Officer that makes strategic decisions.
IAS 23, Borrowing costs. The revised standard requires that borrowing costs related to construction of qualifying assets has to be capitalized as part of the cost of acquisition. Currently the company has no borrowings why the implementation of the standard currently has no practical effect.
The other standards, amendments to standards and interpretations that are mandatory for the first time for the financial year beginning 1 January 2009, are not currently relevant for the group.
The company's auditors have not examined this report.
As previously announced, the Annual General Meeting decided in accordance with the proposals from the Board of Directors, to determine the annual report, allocation of result and discharge the Board Members and CEO from liability, and approved guidelines for remuneration and other terms of employment for the group management. The Annual General Meeting also decided to adopt the employee stock option plan 2009/2013, amendment of the articles of association and the number of board members to be six members without deputies. Lars Berg was reelected as chairman of the board, board members Clifford H. Friedman, Bernt Magnusson, Ragnar Bäck, Gunilla Fransson and Arne Wessberg were re-elected.
Interim report for January – June 2009: 28 August 2009 Interim report for January – September 2009: 22 October 2009
Stockholm, 13 May 2009
Chief Executive Officer
For more information, please contact: Fredrik Trägårdh, CEO Net Insight AB Tel.: +46 (0) 8-685 04 00, email: [email protected]
Lars Kevsjö, CFO Net Insight AB Tel.: +46 (0) 8-685 04 00, 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
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