Tandberg Posts Q2

Announces revenue of $204.6M, operating profit of $43.0M

July 17, 2009

2 Min Read

OSLO -- TANDBERG(R) (OSLO: TAA.OL), today announced financial results for the second quarter ended June 30, 2009.

Overview of 2Q09:

  • Revenue of USD 204.6M (+5.0%)

  • Operating profit of USD 43.0M (+4.3%)

  • Cash flow from operations of USD 52.6M (+47%)

  • Healthy balance sheet with USD 208.1M in cash

  • Strong reception of new products

    FINANCIALS

    Second quarter revenues were USD 204.6M compared with USD 194.9M in the same quarter last year, representing 5% year-over-year growth. Gross margin for the quarter was 66.1%, compared with 65.9% in the same quarter last year. Selling, general & administrative (SG&A) expenses for 2Q09 totaled USD 78.6M, compared with USD 77.0M in 2Q08. Operating profit was USD 43.0M compared with USD 41.2M in the same quarter last year. Earnings per share (after tax) was 0.24 USD in 2Q09 compared with 0.26 USD in the same quarter in 2008.

    The Company generated cash flow from operations of USD 52.6M in the quarter, which after a net cash outflow from investments of USD 16.2M and dividends paid of USD 21.0M, gave total cash inflow of USD 15.4M. As of June 30, the Company had a cash balance of USD 208.1M and an equity ratio of 64.4%.

    OPERATIONS

    Reviewing second quarter results, Lars Ronning, President of TANDBERG Asia Pacific (excluding China and Japan), stated, "The second quarter was marked by consistent execution. Equipped with the strongest product portfolio in the industry, TANDBERG and its loyal partners executed well on the value-based selling model. Strong cash flow generation and a healthy balance sheet reflect the Company's long-term approach.

    "TANDBERG has made steady progress in positioning itself for the second half through its focus on video network leadership and standards-based telepresence. In network products, the Company cemented its technology leadership by being the only vendor to demonstrate 1080p symmetric transcoding.

    "In telepresence, TANDBERG has taken a community approach to not lock anyone out of the meeting. The TANDBERG telepresence server is a unique differentiator for the Company, enabling connectivity with Microsoft Office Communications Server clients and immersive third-party telepresence systems that may be at partner or supplier locations. This seamless interoperability and B2B communication makes TANDBERG the telepresence solution of choice for organizations such as Ericsson and Bayer.

    "The Company has focused on the network and telepresence markets, resulting in increased market share. The Company will also add the Small and Medium-Sized Business (SMB) market to its development plans. As a first step, the Company launched the TANDBERG Quick Set C20, providing easy access to the quality video previously available only to larger customers."

    Tandberg ASA (OSE: TAA)

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