Light Reading Mobile – Telecom News, Analysis, Events, and Research
News Wire Feed  

Net Insight Reports Lower Full-Year Profit

February 14, 2013 |
STOCKHOLM --

Fourth Quarter 2012

  • Net Sales of SEK 68.3 million (80.3) a decrease of 14.9% compared to the same period previous year. In comparable currencies the decrease was 13.5%.
  • Operating earnings, adjusted for restructuring expenses of SEK 3.0 million, amounted to SEK 0.8 million (16.1), corresponding to an adjusted operating margin of 1.2% (20.0)
  • Earnings per share of SEK -0.01 (0.06).
  • Total cash flow of SEK -4.7 million (0.8).

    January - December 2012

  • Net sales of SEK 280.3 million (294.5) corresponding to a decrease of 4.8% compared to the same period previous year. The decrease in comparable currencies amounts to 3.5%.
  • Operating earnings, adjusted for restructuring expenses of SEK 3.0 million, amounted to SEK 5.7 million (42.8), corresponding to an operating margin of 2.1% (14.5).
  • Earnings per share of SEK 0.03 (0.13).
  • Total cash flow of SEK -10.4 million (-39.6).

    Fourth quarter

    Revenues of 68 MSEK (80 MSEK) are 15 % below the same period in the previous year. The revenue decline is driven by the same events as explained in the full year comment below. In summary it relates to project delays in Eastern Europe, Middle East and Africa while Western Europe and APAC performed well and ahead of previous year. The gross margin reached 59 % (62 %) a difference mainly due to increased depreciation of capitalized R&D. The fourth quarter result is affected by a one-time restructuring charge of 3 MSEK. Excluding the restructuring charge the operating earnings reached 1 MSEK (17 MSEK). The restructuring charge relates to the efficiency and cost reduction program announced in October that reduces our total cost base by 25 MSEK for 2013. During the quarter we had a good flow of repeat business from customers across the world but it was the first quarter in a long time where we actually did not close any large single projects, which of course affects the result negatively. As communicated earlier, single large projects will have a significant effect on our quarterly financial performance.

    Full year

    Already the first three quarters indicated relatively flat revenues and, with a weak top line in the fourth quarter, we end the full year with total revenues of 280 MSEK (295 MSEK). The reported decline is 5 % and currency adjusted the decline would be 3.5 %. The gross margin reached 60 % (62 %) and the slight decline is mainly due to increased depreciations on capitalized R&D. The full year operating result, excluding the restructuring charge of 3 MSEK, reached 6 MSEK (43 MSEK). The decline is explained by; 22 MSEK of increased Operating Expenses, increased depreciation on R&D by 11 MSEK and lower revenues.

    There are three main reasons why we were not able to grow in 2012. Projects identified and targeted for 2012 in Eastern Europe, Middle East and Africa did not materialize as planned and were delayed, but not lost. Secondly, five of our ten largest target project opportunities were DTT-projects, none of which materialized during the year, again not lost but delayed. Thirdly and consequently, the average order size declined significantly meaning more efforts to reach "flat" revenues.

    Nevertheless, we had very important customer wins and we launched many new products. Overall we did business with over 100 of our total 175 customers around the world. We did business with over 25 new customers globally. We continued to win the DTT expansions and increase our business and presence in important countries like China and Brazil. The projects became smaller than expected but just as an example, we already count 20 different customers in China where we recently strengthened our presence.

    Net Insight AB



    • Currently we allow the following HTML tags in comments:

    Single tags

    These tags can be used alone and don't need an ending tag.

    <br> Defines a single line break

    <hr> Defines a horizontal line

    Matching tags

    These require an ending tag - e.g. <i>italic text</i>

    <a> Defines an anchor

    <b> Defines bold text

    <big> Defines big text

    <blockquote> Defines a long quotation

    <caption> Defines a table caption

    <cite> Defines a citation

    <code> Defines computer code text

    <em> Defines emphasized text

    <fieldset> Defines a border around elements in a form

    <h1> This is heading 1

    <h2> This is heading 2

    <h3> This is heading 3

    <h4> This is heading 4

    <h5> This is heading 5

    <h6> This is heading 6

    <i> Defines italic text

    <p> Defines a paragraph

    <pre> Defines preformatted text

    <q> Defines a short quotation

    <samp> Defines sample computer code text

    <small> Defines small text

    <span> Defines a section in a document

    <s> Defines strikethrough text

    <strike> Defines strikethrough text

    <strong> Defines strong text

    <sub> Defines subscripted text

    <sup> Defines superscripted text

    <u> Defines underlined text

    Network Computing encourages readers to engage in spirited, healthy debate, including taking us to task. However, Network Computing moderates all comments posted to our site, and reserves the right to modify or remove any content that it determines to be derogatory, offensive, inflammatory, vulgar, irrelevant/off-topic, racist or obvious marketing/SPAM. Network Computing further reserves the right to disable the profile of any commenter participating in said activities.

     
    Disqus Tips To upload an avatar photo, first complete your Disqus profile. | View the list of supported HTML tags you can use to style comments. | Please read our commenting policy.
     
    Related Content
    Most Popular
    Read
    White Papers SPONSORED CONTENT
    Featured
    Resource Library SPONSORED CONTENT
    Mach-Zender Modulator
    A modulator that uses a phase shift to create 1s and 0s