Tandberg TV Bounces Back
After the company announced earnings Wednesday, its stock rose from 56 Norwegian Krone (US$8.38) to 66 Krone ($9.88) at close Thursday. The stock lost a bit of ground Friday, closing at 65 Krone ($9.68).
The company reported revenues of $80.7 million for the third quarter, up 9 percent from the $74.4 million it reported in the same quarter last year.
Profits were off. The company earned $9.2 million, compared to $15.1 million in the third quarter of last year. (See IPTV Sluggishness Slugs Tandberg TV.)
Still there was cause for optimism.
Tandberg TV just six weeks ago had lowered expectations for third-quarter results, citing sluggish orders for its video encoders from telcos building IPTV networks. That news sent the stock down 38 percent the day after the September 5 announcement. (See Tandberg TV Stock Off 38% After Warning.)
At the time, the company adjusted its expected third-quarter revenues from $100 million to $80 million, and the figure proved right. Third-quarter revenues came in at $80.7 million.
Tandberg TV described a much rosier picture for the fourth quarter Wednesday. "We are picking up from September 5th; we are seeing early signs of renewed growth in the IPTV segment," CEO Eric Cooney told investors Wednesday.
Another bright spot was Tandberg TV's order backlog, which increased 15 percent from the previous quarter to an all-time high of $81 million.
Tandberg TV expects some of that backlog to "unwind" into reportable revenue in the fourth quarter. The company had said in early September it expected fourth-quarter revenues in the $84 million to $88 million range, and it held to that guidance Wednesday.
— Mark Sullivan, Reporter, Light Reading