INTERIM REPORT JANUARY - MARCH 2009
Net Insight AB (publ), Corporate Reg. No. 556533-4397
January - March 2009
• Net sales amounted to SEK 60.4 million (64.7).
• Net income before tax increased by 63% to SEK 10.0 million (6.2).
• Net income after tax increased by 17% to SEK 7.2 million (6.2).
• Software license and support revenue increased by 24% to SEK 16.9 million (13.6).
• Total cash flow amounted to SEK 20.9 million (-22.4).
• Net profit margin was 11.9 % (9.5).
• Earnings per share amounted to SEK 0.02 (0.02).
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.