Full year 2009
- Net sales of SEK 232.8 million (274.3).
- Software license and support revenue of SEK 62.7 (62.1).
- Improved gross margin at 76.4% (72.4).
- Operating margin of 14.6% (13.8)
- Earnings before tax of SEK 31.6 million (40.9).
- Total cash flow of SEK 0.3 million (23.5).
- Earnings per share of SEK 0.09 (0.18). Decrease on net income level affected by larger capitalized loss carry forwards in 2008.
Fourth quarter 2009
- Net sales of SEK 52.2 million (70.2).
- Software license and support revenue of SEK 15.1 million (11.0).
- Gross margin of 74.1% (74.7).
- Operating margin of 4.2% (14.0)
- Earnings before tax of SEK 2.3 million (10.4)
- Total cash flow of SEK –3.8 million (18.8).
- Earnings per share of SEK 0.03 (0.10). Decrease on net income level affected by larger capitalized loss carry forwards in 2008.
CEO comments
Our revenues have not been growing as planned during the year and I see three main reasons for this. During 2009 the repeat business declined but remains substantial, we had no large projects in the delivery phase and investment decisions slipped in many markets during the year. The macro economic conditions 2009 are well known at this point and clearly had a negative effect on our industry.
Despite that, we are able to report positive earnings and cash flow for the full year, supported by a strong gross margin.
Much of our business is project based causing revenue fluctuations over time. EMEA developed strongly but both Asia Pacific and the Americas are behind 2008. We won new orders for Digital Terrestrial TV networks and our position is strong among broadcasters and media centric network operators. During 2009 we have also won new important business for both Cable TV and IPTV networks.
Another very positive development is that we added many new customers and six new countries to our market reach. Brazil and India are two new and potentially large markets for Net Insight where we have won business with leading broadcasters and communications service providers. In the Middle East and China we continued to deliver equipment to significant TV production, contribution and distribution networks. An important step in our expansion strategy has also been taken during the year as we won some initial business together with large global system integrators.
The industry is preparing for the current global “explosion” of video network traffic and Net Insight is able and ready to help customers effectively meet that industry change. We often win business based on our well-proven ability to always deliver 100% Quality of Service, lowest total cost of ownership and our ability to combine IP and optical transport in a one-box solution. 2009 demonstrated that we are truly helping customers reduce complexity and operating costs while enabling new revenue generating services.
Our new customer wins, the significantly enhanced IP offering and our healthy financial position make us well prepared for the future.
I reiterate that Net Insight is well positioned and we continue to confidently drive along our strategic direction for growth in the years ahead.
The full report can be downloaded here: Year-end report 2009 (pdf)
Stockholm, 19 February 2010
Fredrik Trägårdh
Chief Executive Officer
For more information, please contact:
Fredrik Trägårdh, CEO Net Insight AB,
Tel: +46 (0) 8-685 0400, fredrik.tragardh@netinsight.net
Thomas Bergström, CFO, Net Insight AB
Tel.: +46 (0) 8-685 04 00, thomas.bergstrom@netinsight.net
Box 42093
126 14 Stockholm
Tel +46 (0) 8 685 04 00
www.netinsight.net
Corporate Reg. No. 556533-4397