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TANDBERG Reports Second Quarter 2007 ResultsOSLO, Norway & NEW YORK --(Business Wire)-- TANDBERG(R) (OSLO: TAA.OL), today announced financial results for the second quarter ended June 30, 2007. Overview of 2Q07: -- Revenue of 143.8 MUSD with volume of 13,512 units -- Operating profit of 33.3 and pre-tax profit of 32.2 MUSD -- Operating expenses reflect investments in strategic initiatives -- Cash flow from operations of 25.8 MUSD FINANCIALS Second quarter revenues were at 143.8 MUSD compared with 96.5 MUSD in the same quarter last year. Gross margin for the quarter was 67.1%, compared with 66.3% in the same quarter last year. Selling, general & administrative (SG&A) expenses for 2Q07 totaled 57.1 MUSD, compared with 39.7 MUSD in the same quarter last year. Operating profit was 33.3 MUSD compared with 20.7 MUSD in the same quarter last year. Earnings per share (after tax) were 0.213 USD in 2Q07 compared with 0.128 USD in the same quarter last year. The Company generated cash flow from operations of 25.8 MUSD in the quarter which after a net cash outflow from investments of 10.7 MUSD and a dividend of 14.6 MUSD, gave a total cash inflow of 0.5 MUSD. As of June 30, the Company had a cash balance of 140.9 MUSD and an equity ratio of 63.4%. OPERATIONS Discussing second quarter results, Fredrik Halvorsen, Chief Executive Officer, stated, "The industry momentum experienced in 1Q was maintained in 2Q. The Company executed solidly, and continued to grow. Video is becoming an integral part of the total converged IP communication solution. TANDBERG is capturing this industry opportunity through continued investment in R&D, sales and scaling of its organization. In addition, the Company is executing on the strategic initiatives announced in 1Q07 to drive a distinct position within the changing competitive landscape. Continued tight working capital management is evident from the balance sheet with DSOs at 59.8 days and stable inventory." MARKETS In 2Q07, TANDBERG sold 13,512 units compared with 9,148 units in the same quarter last year, a 47.7% increase. AMERICAS Revenue in the Americas Theatre during 2Q07 totaled 77.2 MUSD compared with 52.8 MUSD the same quarter last year, maintaining strong sales performance. The Theatre continued to experience balanced growth and consistent execution, with strong growth in network and services sales. These results reflect good industry momentum carried over from 1Q including development in the telepresence space, as executive buyers are actively evaluating Experia and joint TANDBERG and HP Halo solutions. The recent partner summit and trade shows attracted record levels of interest, and the TANDBERG 1700 MXP, the only HD executive workstation in the market, continues to outpace projections. Channel development in the enterprise sector remains a key area of focus for the Americas team. EMEA Revenue in EMEA during 2Q07 totaled 51.9 MUSD, compared with 33.3 MUSD in the same quarter last year. All regions performed well, particularly Northern Europe and Spain. The EMEA team experienced good traction in developing channels and global accounts. In addition, there was increased interest in the total solution, including telepresence. EMEA will continue to invest to strengthen the organization. ASIA PACIFIC Revenue in APAC during 2Q07 totaled 14.7 MUSD, compared with 10.4 MUSD in the same quarter last year. Theatre performance was on track for the quarter, with particularly strong results in Australia. Investments into China and Japan continue. STRATEGIC INITIATIVES IP communication is now being rapidly embraced, driving convergence of voice, video, and desktop collaboration. To take advantage of this market opportunity and establish a distinct position as a provider of Natural Communication, TANDBERG continues to execute along the three priorities outlined for 2007: Sustain strong operating fundamentals: The Company maintained its focus on consistent execution in the field. Address areas of opportunity in the core business in 2007: TANDBERG has built a leadership position through its total solution offering. The Company has continued to expand on this solution in the first half of 2007 launching: -- TANDBERG Experia adaptive telepresence solution provides meeting participants with an in-person experience -- while being miles or continents apart. The Experia advantage is in its ability to adapt to multiple environments and to interoperate with other standards-based traditional video systems, providing the telepresence experience to a wider market. -- TANDBERG Movi PC videoconferencing enables everyone in an organization to communicate visually from anywhere. Movi is a centralized network device, with no locally installed software and a simple user interface, making it much easier to deploy and use than other PC video tools. -- TANDBERG Entrypoint video access system is a first-of-its-kind solution that allows any videoconferencing user to simply connect at a moment's notice with an enterprise, calling one main number to directly access information over a video menu system. This innovation opens the door to much more ad hoc use of video, dramatically expanding the use of existing video investments. Invest aggressively to capture the converged IP communication opportunity. TANDBERG has outlined a SIP strategy that includes making video available and accessible on any enterprise network. Delivering on SIP, TANDBERG will provide customers the ability to connect people, not devices. The Company will execute this SIP strategy through both tighter integration of TANDBERG video systems with existing VOIP offerings and internal development. ORGANIZATION Tom Husebo is named Head of Investor Relations, a role previously held by Terje Rogne. WEBCAST/CONFERENCE CALL DETAILS Today at 5:00 pm Central European Time or 11:00 am Eastern Time, Fredrik Halvorsen, Chief Executive Officer, will host a live webcast/conference call from Oslo, Norway. Additionally, a PowerPoint presentation will accompany the webcast/conference call. To access the webcast, please visit: https://tandbergevents.webex.com For those who prefer to dial-in, the conference call can be accessed at +1.888.217.3982 (U.S. callers) +1.617.614.3936 (international). The audience passcode for the call is TANDBERG. An online archive of the broadcast will be available within one business day.
OSLO and NEW YORK, July 11, 2007
The Board of Directors of TANDBERG asa
Jan Chr. Opsahl (sign.) Fredrik Halvorsen (sign.)
Chairman Chief Executive Officer
Third quarter results will be released on October 15, 2007. PROFIT AND LOSS APR - JUN JAN - JUN JAN - DEC Figures in USD million 2007 2006 2007 2006 2006 -----------------------------------------------------------------
QUARTERLY RESULTS 2006 2007
Q1 Q2 Q3 Q4* 2006 Q1 Q2
-------------------------------------------------------------------
SEGMENT INFORMATION APR - JUN 2007 ----------------------------------------------------------------- BALANCE SHEET 30 JUN 31 DEC Figures in USD million 2007 2006 2006 -----------------------------------------------------------------
CASH FLOW ANALYSIS APR - JUN JAN - JUN
Figures in USD million 2007 2006 2007 2006
-------------------------------------------------------- -------------
Cash flow from operations
Profit before tax 32.2 21.4 61.6 40.5
Taxes paid (9.2) (6.5) (22.0) (12.6)
Ordinary depreciation/ amortization 2.3 1.5 4.3 2.8
Amortization of capitalized development 3.8 2.1 7.3 4.0
Share-based incentive program 3.4 1.2 6.0 1.2
Change in receivables/ payables/
inventories (16.9) (3.9) (22.7) (2.2)
Non-recurring settlement costs - - (12.0) -
Change in other accounts 6.9 7.7 9.2 3.8
Effect of changes in exchange rates 3.4 1.1 3.6 1.8
------------- -------------
Net cash flow from operations 25.8 24.7 35.5 39.3
Cash flow from investments
Investments in tangible/ intangible assets (4.5) (1.7) (7.8) (3.3)
Capitalized development (6.3) (4.9) (12.0) (9.4)
------------- -------------
Net cash flow from investments (10.7) (6.6) (19.9) (12.7)
Cash flow from financing
Proceeds from sale of treasury shares - - 0.1 -
Repurchase of shares - (24.2) (9.9) (38.2)
Dividend paid (14.6) (11.9) (14.6) (11.9)
------------- -------------
Net cash flow from financing (14.6) (36.1) (24.4) (50.1)
Net change in liquid assets during the
period 0.5 (18.1) (8.8) (23.4)
Liquid assets opening balance 140.3 197.5 149.6 202.8
Effect of exchange rate on cash 0.1 (0.1) 0.1 (0.1)
Liquid assets at end of period 140.9 179.3 140.9 179.3
FINANCIAL STATEMENTS - BASIS FOR PREPARATION The enclosed consolidated condensed financial statements have been prepared in accordance with IAS 34, "Interim Financial Reporting". SIGNIFICANT ACCOUNTING POLICIES The accounting policies and methods of computation used in the preparation of the financial statements are consistent with the policies used in the annual financial statements for the year ended December 31, 2006. The enclosed consolidated condensed financial statements should be read in conjunction with the 2006 annual financial statements, which include a full description of the Group's accounting policies. ABOUT TANDBERG TANDBERG is a leading global provider of visual communication products and services. The Company has dual headquarters in New York and Oslo. TANDBERG designs, develops and markets systems and software for video, voice and data communication. 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 www.tandberg.com for more information. TANDBERG is a registered trademark or trademark in the U.S. and certain other countries. All other trademarks are property of their respective owners. |
