Net Insight has been carrying out intensive development work that has resulted in a number of finished products for the media market. In view of this and the current economic situation, the company´s board has decided to curtail the company´s highly ambitious development program for the immediate future.
These economy measures aim to cut the company´s cost by half, and they will mean that consultancy services and external development will be drastically reduced. These measures also involve reductions in staff and a general cost review across the entire business.
Up to today, the main source of Net Insight costs has been in development work that has resulted in finished products primarily for the media market. This now means that the company can cut back the rate of new technological development without inconveniencing its customers.
The general recession in the telecom and network markets is quite evident. Nevertheless, customer needs in Net Insight´s prioritized segment, the media market, are so pronounced and so clear for the company to be able to count on substantial business during next year.
"We are now adjusting our cost levels to the prevailing economic climate. In spite of these cut-backs, we will continue to retain considerable development capability and the capacity to produce the new products that our customers demand. This also helps us focus harder on customer orientation and sales," says Tomas Duffy, CEO of Net Insight.
For more details, please contact:
Tomas Duffy, CEO Net Insight AB.
Tel. +46 8 685 04 00, e-mail: tomas.duffy@netinsight.net
Carl-Johan Blomberg, CFO Net Insight AB
Tel. +46 8 685 06 20, e-mail: carl.johan.blomberg@netinsight.net
Carolen Ytander, VP Corporate Communications, Net Insight AB.
Tel. +46 8 685 04 50, e-mail: carolen.ytander@netinsight.net
About Net Insight
Net Insight develops and markets network switches for fibre-optic broadband networks. Using Net Insight solutions, operators can offer everything from new advanced real-time services to studio-quality video, and Internet communication to traditional telephony and data. The services can be supplied across one and the same infrastructure simply and cost-effectively. Net Insight has around 140 employees in Sweden and the USA. The company is listed on the Stockholm Stock Exchange. For more information, please see www.netinsight.net