& cplSiteName &

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        ADD A COMMENT
    From The Founder
    Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
    Flash Poll
    Live Streaming Video
    Charting the CSP's Future
    Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
    Women in Comms Introduction Videos
    Cisco: Mentoring Critical to Attract & Retain Women

    7|19|17   |   6:40   |   (1) comment


    Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
    LRTV Custom TV
    Gigabit LTE With Snapdragon 835

    7|12|17   |     |   (1) comment


    At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
    LRTV Custom TV
    Implementing Machine Intelligence With Guavus

    7|12|17   |     |   (0) comments


    Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
    LRTV Custom TV
    Unlocking Customer Experience Insights With Machine Intelligence

    7|12|17   |     |   (0) comments


    When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
    Women in Comms Introduction Videos
    Verizon VP Talks Network, Career Planning

    7|12|17   |   4:49   |   (0) comments


    Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
    Telecom Innovators Video Showcase
    Masergy's NFV Journey

    7|11|17   |     |   (0) comments


    Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
    Telecom Innovators Video Showcase
    Mavenir on RCS Cloud Platform & Multi-ID

    7|10|17   |     |   (0) comments


    Guillaume Le Mener, head of marketing and corporate development at Mavenir, discussed RCS and the recent launch of Multi-ID, which supports T-Mobile's DIGITS, the revolutionary new technology that breaks down the limitation of one number per phone and one phone per number.
    LRTV Custom TV
    ADTRAN Executive Outlines Trends in Next-Generation 10-Gigabit Cable Networks

    7|10|17   |     |   (0) comments


    Hossam Salib, VP of Cable and Wireless Strategy at ADTRAN, outlines key trends as MSOs begin to deploy next-generation Gigabit and 10-Gigabit cable networks. In the interview, Hossam outlines the advantages of a Fiber Deep architecture, FTTH options including EPON and RFoG, and the importance of SDN and NFV in building next-generation high-bandwidth cable networks.
    LRTV Interviews
    Global Capacity: Bandwidth Demand Driving Ethernet Growth

    7|6|17   |   6:37   |   (0) comments


    At Light Reading's Big Communications Event in Austin, Texas, Global Capacity's VP of Marketing Mary Stanhope talks about how the demand for bandwidth is changing the way service providers deliver broadband services.
    LRTV Interviews
    Colt's Services Chief on Digital Delivery

    7|5|17   |   16:12   |   (0) comments


    Rogier Bronsgeest, the chief customer experience officer (chief CEO!) at Colt, discusses the way in which the service provider interacts with its customers these days and his aggressive net promoter score (NPS) targets.
    Women in Comms Introduction Videos
    BT VP: Women Should Fill Security Talent Gap

    7|5|17   |   6:00   |   (2) comments


    By 2020 there will be six security jobs for every qualified worker, and Kate Kuehn, vice president of Security for BT in the Americas, says BT wants to encourage women to fill the shortage in jobs.
    LRTV Interviews
    Colt Sales Exec on Services Trends

    7|4|17   |   12:59   |   (0) comments


    Colt's sales director for enterprise, James Kershaw, sheds some light on the services currently in demand and how network upgrades are influencing customer demand.
    Upcoming Live Events
    September 28, 2017, Denver, CO
    October 18, 2017, Colorado Convention Center - Denver, CO
    November 1, 2017, The Royal Garden Hotel
    November 1, 2017, The Montcalm Marble Arch
    November 2, 2017, 8 Northumberland Avenue, London, UK
    November 30, 2017, The Westin Times Square
    All Upcoming Live Events
    Infographics
    With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
    Hot Topics
    Mobile to Power Online Video Consumption – Zenith
    Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 7/19/2017
    Can Mushroom Sprout in Crowded SD-WAN Field?
    Carol Wilson, Editor-at-large, 7/18/2017
    AI Will Be Ubiquitous in 2020 but Overhyped in 2017 – Gartner
    Sarah Thomas, Director, Women in Comms, 7/18/2017
    Brocade, Broadcom Merger in Doubt
    Iain Morris, News Editor, 7/19/2017
    Qualcomm Takes Q3 Pummeling From Apple
    Iain Morris, News Editor, 7/20/2017
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
    One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
    Animals with Phones
    Fuzzy Quick Fix Click Here
    If you can't access it, is it really broken?
    Latest Comment
    Live Digital Audio

    Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.