INTERIM REPORT JANUARY – JUNE 2010
Net Insight AB [publ] Corporate Reg. No 556533-4397
Second Quarter 2010
· Net sales of SEK 71.5 million (62.6).
· Software license and support revenue of SEK 19.0 million (15.3).
· Gross Margin of 74.3% (78.7) applying the same accounting treatment as in
· Gross Margin of 66.4% (78.7).
· Operating earnings of SEK 11.9 million (11.0), corresponding to an operating
margin of 16.6% (17.6).
· Net income of SEK 8.7 million (7.9).
· Net profit margin of 12.2% (12.7).
· Earnings per share of SEK 0.02 (0.02).
· Total cash flow of SEK 3.3 million (-34.5).
January – June 2010
· Net sales of SEK 132.0 million (123.1).
· Software license and support revenue of SEK 34.8 million (32.2).
· Gross Margin of 74.5% (77.2) applying the same accounting treatment as in
· Gross Margin of 66.1% (77.2).
· Operating earnings of SEK 18.1 million (21.3), corresponding to an operating
margin of 13.7% (17.3).
· Net income of SEK 72.7 million (15.1). The improvement is a one-time effect
related to the IPR transaction in Q1.
· Net profit margin of 55.1% (12.3).
· Earnings per share of SEK 0.19 (0.04).
· Total cash flow of SEK 56.4 million (-13.5).
A strong quarter with revenue growth of 14%
We are delivering a strong second quarter both from a financial and strategic
Revenue is up with 14% compared to last year and 18% from the first quarter 2010. We
also see a healthy operating margin of 17%.
For the first half of the year, the operating earnings are slightly down compared to
last year, as a result of increased investments in sales and marketing. This in turn has
led to an increased order flow and more business opportunities.
The company is progressing well towards our strategic objectives to leverage our DTT
leadership, to expand our business in broadcast and media as well as finding new
business in the area of CATV/IPTV.
I am very proud to count six important DTT wins over the past six months. We just
recently, in the middle of July, announced a very significant win in Poland where a
combined offering of Ericsson and Net Insight was the winning solution for a new DTT
network. Earlier in the quarter we won what I regard as a very significant and strategic
project when Teracom of Sweden selected Net Insight for the world’s first all IP-based
During the end of the quarter we have been greatly involved with the FIFA World Cup live
transmissions from South Africa. The Nimbra platform was used by nine different
customers to bring live TV signals to over 80 countries. For the first time ever our
customer ESPN transmitted live 3D feeds from South Africa to viewers across the United
States. I can also mention that our participation was successful and we have received
positive feedback from our customers which holds us in good stead for the future.
In regards to the CATV/IPTV business area we received an order with a large cable
operator in Canada, a new customer to Net Insight, which is encouraging for future
opportunities in the cable TV market.
Geographical expansion is of strategic importance to us and during the second quarter we
have entered new markets with new partners and reached new customers successfully. The
new markets entered during the second quarter are the Philippines and South Africa. I am
satisfied with the first half of the year and at the moment I see no lack of business
opportunities for the quarters ahead.
The full report can be found below.
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 22nd, 2010 at 08.30 am CET.
Stockholm, July 22nd, 2010
Chief Executive Officer
For more information, please contact:
Fredrik Trägårdh, CEO Net Insight AB
Tel: +46 (0) 8-685 0400, firstname.lastname@example.org
Thomas Bergström, CFO, Net Insight AB
Tel.: +46 (0) 8-685 04 00, email:email@example.com
Net Insight AB
Net Insight AB (publ)
126 14 Stockholm
Tel +46 (0) 8 685 04 00
Corporate Reg. No. 556533-4397
Interim report January – June 2010 http://hugin.info/130084/R/1433345/379218.pdf