Global Revenues of USD 204.6M and Operating Profit of USD 43.0M in 2Q09
HONG KONG, July 17 /PRNewswire-Asia/ -- 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."
MARKETS
In 2Q09, TANDBERG sold 15,663 endpoint units compared with 16,483 endpoint units in the same quarter last year, a 5% year-on-year decrease (a 4% increase excluding OEM units).
Revenue from network products grew 25%, and service revenues grew 22% year-on-year.
ASIA PACIFIC
Revenue in APAC during 2Q09 totaled USD 24.9M, compared with USD 25.3M in the same quarter last year. The team delivered a significant Australia deal in the New South Wales Department of Education and Training, equipping over 2,300 schools.
In North Asia, China experienced good traction with high-profile customer wins, and identified improvement opportunities in Japan. The Region will see continued investment in the organization, with particular emphasis on an improvement plan for Japan. The South Asia team performed well, and observed strong interest in the telepresence solution.
2009 STRATEGIC INITIATIVES
Entering 2009, the Company's priorities were to take a network-centric approach to video, to establish technology leadership in telepresence, and to make high quality video accessible to everyone. TANDBERG made distinct progress towards these goals in the second quarter.
Network-centric approach: TANDBERG expanded its network portfolio in the quarter. First, TANDBERG released 1080p capability in its multipoint control units with no port loss, solidifying its technology leadership. The Company also became the only vendor to demonstrate1080p symmetric transcoding, an advanced quality standard.
In addition, the Company introduced a compact version of the award winning chassis-based TANDBERG Telepresence Server and the Compliance Appliance, an industry-first scalable recording solution serving industries from healthcare to finance.
Telepresence: The Company's Total Telepresence portfolio experienced strong traction with leading Fortune 500 companies, including Ericsson and Bayer, who are selecting TANDBERG as a way to drive efficiencies, improve business processes and decrease carbon emissions.
TANDBERG's approach to telepresence is to bridge the worlds of video conferencing and telepresence, regardless of network or product. Putting the TANDBERG Telepresence Server at the core of the network enables customers to build a video community and strongly differentiates TANDBERG.
-- As previously introduced, the interoperability between Microsoft Office Communications Server 2007 and TANDBERG Telepresence Server offers customers a rich and integrated communications experience.
-- The Company announced in the second quarter that the TANDBERG telepresence is the first and only immersive telepresence solution that maintains the multi-screen, high-definition telepresence experience when calling out to a third-party telepresence system.
-- In addition, TANDBERG customers can connect with customers and suppliers. This ability will be enhanced through a memorandum of understanding with BT to deliver the first global non-proprietary solution for inter-company telepresence and video conferencing.
Video accessible to everyone: Bringing video to a wider audience, TANDBERG announced that it will serve the SMB market. The TANDBERG Quick Set C20, introduced in the second quarter, is the first-of-its-kind 1080p video conferencing solution designed specifically to meet the unique needs of the SMB. The Quick Set C20 makes implementing high-quality, easy-to-use visual communications solutions, or expanding existing solutions, simple.
About TANDBERG
TANDBERG is the leading global provider of telepresence, high-definition video conferencing and mobile video products and services with dual headquarters in New York and Norway. TANDBERG designs, develops and markets systems and software for video, voice and data. The company provides sales, support and value-added services in more than 90 countries worldwide. TANDBERG is publicly traded on the Oslo Stock Exchange under the ticker TAA.OL. Please visit http://www.tandberg.com for more information. TANDBERG is a trademark or registered trademark in the U.S. and other countries.
For further information contact:
Nilesh Pritam
TANDBERG
Tel: +65-6236-9231 / +65-9369-5477
Email: nilesh.pritam@tandberg.com
