Light Reading
Weak quarter ends a challenging year for Swedish optical equipment vendor

Net Insight Reports Lower Full-Year Profit

Light Reading
News Wire Feed
Light Reading
2/14/2013
50%
50%

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
    (0)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View
    Educational Resources
    sponsor supplied content
    Educational Resources Archive
    Flash Poll
    From The Founder
    It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
    LRTV Custom TV
    Advantech Accelerates 100G Traffic Handling

    10|17|14   |   7:56   |   (0) comments


    Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
    LRTV Huawei Video Resource Center
    Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

    10|16|14   |   4:49   |   (0) comments


    Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
    LRTV Huawei Video Resource Center
    Huawei's Comprehensive Storage Solutions Vital for SVR

    10|16|14   |   6:16   |   (0) comments


    SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
    LRTV Huawei Video Resource Center
    Mexico's Servitron's Impression of Huawei at CCW 2014

    10|16|14   |   6:35   |   (0) comments


    Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
    LRTV Huawei Video Resource Center
    Building a Better Dubai

    10|16|14   |   2:06   |   (0) comments


    Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
    LRTV Huawei Video Resource Center
    Huawei Lights Up Malaysia Partner Maju Nusa

    10|16|14   |   1:59   |   (0) comments


    Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
    LRTV Custom TV
    Evolving From HFC to FTTH Networks

    10|15|14   |   2:19   |   (0) comments


    Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
    LRTV Custom TV
    Exploring the Future of Cable Access

    10|15|14   |   6:23   |   (0) comments


    Cisco's Brett Wingo looks at where cable access architectures are heading, discussing the impact of DOCSIS 3.1, CCAP, Remote PHY, SDN, virtualization of cable networks and related technologies.
    LRTV Custom TV
    Optimizing & Monetizing WiFi

    10|15|14   |   5:53   |   (0) comments


    Cisco's Vince Pandolfi outlines the reasons for cable WiFi's rapid growth, lays out the issues with the technology and explains the new Cisco tools that can help operators monitor and improve their WiFi delivery.
    LRTV Huawei Video Resource Center
    Emulex & Huawei Collaboration Mutually Beneficial

    10|14|14   |   4:17   |   (0) comments


    US company Emulex collaborates with Huawei in areas such as blade servers and workload documentation. Mike Heumann of Emulex believes that Huawei has done incredibly well moving from a telecom company into servers and networks, working closely with customers to realize their needs.
    LRTV Huawei Video Resource Center
    Chile's VZION Looks Forward to Seeing More of Huawei

    10|14|14   |   4:43   |   (0) comments


    VZION is a systems integrator company in Chile with a focus on virtulization technology. In this video, Cesar Alcacibar talks about the challenges in virtualization and how Huawei helps his company to achieve the best results possible. Alcacibar is expecting more adoption and integration of Huawei technologies in Chile.
    LRTV Huawei Video Resource Center
    Pro-Datech & Huawei for a High-Tech Singapore

    10|14|14   |   2:59   |   (0) comments


    Pro-Datech Systems is a specialty IT solution provider based in Singapore. For an added value to its customers, the company uses Huawei's hardware and trusted performance and features for a total solution. It's looking forward to the creation of a lab, to be based in Singapore, for the two companies' coorporation on total storage solution.
    Upcoming Live Events
    October 29, 2014, New York City
    November 6, 2014, Santa Clara
    November 11, 2014, Atlanta, GA
    December 2, 2014, New York City
    December 3, 2014, New York City
    December 9-10, 2014, Reykjavik, Iceland
    June 9-10, 2015, Chicago, IL
    Infographics
    WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
    Hot Topics
    Forget the Internet, Brace for Skynet
    Stephen Saunders, 10/15/2014
    HBO Will Go OTT in 2015
    Mari Silbey, Independent Technology Editor, 10/15/2014
    Google: Carriers & Cloud Providers Need to Cooperate
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/16/2014
    Could Data Be the New 'Currency'?
    Ray Le Maistre, Editor-in-chief, 10/16/2014
    CBS Takes OTT Plunge
    Mari Silbey, Independent Technology Editor, 10/16/2014
    Like Us on Facebook
    Twitter Feed