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TANDBERG Reports Third Quarter 2009 ResultsOSLO & NEW YORK --(Business Wire)-- TANDBERG® (OSLO: TAA.OL), today announced financial results for the third quarter ended September 30, 2009. Overview of 3Q09: Revenue of 234.7 MUSD (+11.6%) Operating profit of 50.0 MUSD (+10.2%) Cash flow from operations of 72.0 MUSD (+35%) Continued telepresence innovation Recommended voluntary cash offer from Cisco (News - Alert) FINANCIALS Third quarter revenues were 234.7 MUSD compared with 210.3 MUSD in the same quarter last year, representing 11.6% year-over-year growth. Gross margin for the quarter was 65.6%, compared with 65.9% in the same quarter last year. Selling, General & Administrative (SG&A) expenses for 3Q09 totaled 89.5 MUSD, compared with 81.7 MUSD in 3Q08. Operating profit was 50.0 MUSD compared with 45.3 MUSD in the same quarter last year. Earnings per share (after tax) was 0.23 USD in 3Q09 compared with 0.35 USD in the same quarter in 2008. The Company generated cash flow from operations of 72.0 MUSD in the quarter, which after a net cash outflow from investments of 14.1 MUSD and the Codian (News - Alert) loan note payment of 20.0 MUSD, gave a total cash inflow of 37.9 MUSD. As of September 30, the Company had a cash balance of 245.7 MUSD, no debt, and an equity ratio of 64.8%. OPERATIONS Reviewing third quarter results, Fredrik Halvorsen, Chief Executive Officer, stated, "Consistent execution and strong performance from the Public Sector team in the US drove third quarter results. Moreover, TANDBERG continued to expand the market with the strongest total solution. The Company continued to generate strong cash flow and maintain a healthy balance sheet. To meet growing customer demand, TANDBERG continued to drive innovation in the telepresence market by introducing the new immersive TANDBERG Telepresence (News - Alert) T1. The immersive T1 provides the same rich experience, multi-vendor interoperability and intuitive interface as the award-winning TANDBERG Telepresence T3. The T1 received excellent reviews at the recent EMEA Partner Summit and will enable the Company's partners to bring immersive telepresence to a wider user base. The announcement enhances TANDBERG's award-winning telepresence portfolio, including the TANDBERG T3, the TANDBERG Codec C90, and the best-in-class TANDBERG Telepresence Servers." MARKETS In 3Q09, TANDBERG sold 18,260 endpoints compared with 17,487 endpoint units in the same quarter last year, a 4% year-on-year increase. Revenue from network products grew 34%, and service revenues grew 18% year-on-year. AMERICAS Revenue in the Americas during 3Q09 totaled 129.7 MUSD compared with 109.1 MUSD the same quarter last year. Public Sector outperformed in the quarter, driven by the strongest team in the industry. In particular, Federal performance was very strong, and the State and Local business in the East also showed good growth. The Company continued to invest in the Public Sector, aggressively expanding the team during the quarter. Mixed performance and execution issues in State and Local West were also addressed in the quarter. The Commercial business continued to experience prolonged sales cycles, but the team executed well in all areas and gained momentum in network sales. Partners and customers reacted positively to the Cisco offer. EMEA Revenue in EMEA during 3Q09 totaled 78.1 MUSD, compared with 77.4 MUSD in the same quarter last year. Focus on the Public Sector paid off in the quarter, in particular in the UK. Good performance was also reported in the Netherlands, Germany, France and Sweden. Norway, Russia and Central Eastern Europe experienced a challenging quarter. The EMEA team exercised good cost control and performance management. Strong services sales continued across all markets. The Theatre also saw record high participation at the Partner Summit and a positive reaction from partners and customers around the Cisco offer. The EMEA team will focus on establishing a strong position in the mid-market, and on executing on the Public Sector and Channels initiative. ASIA PACIFIC Revenue in APAC during 3Q09 totaled 26.9 MUSD, compared with 23.8 MUSD in the same quarter last year. The North Asia team showed good growth in China. The South Asia team experienced good traction for telepresence products throughout the region, as well as solid wins in the Judicial and Defense segments in South East Asia. The Company continued to invest in the organization and in channels. RECOMMENDED VOLUNTARY CASH OFFER BY CISCO On October 1, TANDBERG announced a recommended voluntary cash offer by Cisco to acquire 100% of the shares of TANDBERG ASA. The proposal was recommended unanimously by TANDBERG's Board of Directors. For clarification, the Board wants to emphasize that the management team will continue in their existing functions, and with their existing total compensation packages. The offer period started on Friday 9 October 2009 and ends 9 November 2009 at 17:30 CET. The offer document has been sent to all registered shareholders of TANDBERG as of 2 October 2009 and is available on www.carnegie.no. The acquisition is expected to close during the first half of calendar year 2010, subject to customary closing conditions, including regulatory review in the United States and elsewhere. OSLO and NEW YORK, October 15, 2009The Board of Directors of TANDBERG asa Jan Chr. Opsahl (sign.) Fredrik Halvorsen (sign.) Chairman Chief Executive Officer WEBCAST/CONFERENCE CALL DETAILS Today at 5:45 pm Central European Time and 11:45 am Eastern Time, Fredrik Halvorsen, Chief Executive Officer, will host a live webcast/conference call. 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 +1.617.614.4912 (international), +1.800.591.6948 (U.S. callers) and 0808.234.7616 (U.K. callers). The audience passcode for the call is TANDBERG. Fourth quarter results will be presented on February 3, 2010 at 5:45 pm CET / 11:45 am ET. For further information please contact Geir Olsen, ph. +44 7766254782. 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, 2008, revised for new standards and interpretations adopted for 2009 as explained in note 1 to the 2008 annual financial statements. The enclosed consolidated condensed financial statements should be read in conjunction with the 2008 annual financial statements, which include a full description of the Group's accounting policies. ABOUT TANDBERG TANDBERG is the leading provider of telepresence, high-definition videoconferencing and mobile video 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. TANDBERG GROUP, JULY - SEPTEMBER 2009 (IFRS - non audited figures) CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME JUL - SEP JAN - SEP JAN - DEC Figures in USD million 2009 2008 2009 2008 2008 Operating revenues 234.7 210.3 632.6 583.3 808.8 Cost of goods sold 80.7 71.7 215.8 199.5 274.9 Operating expenses 89.5 81.7 242.3 228.4 313.7 Depreciation 14.5 11.6 40.7 31.4 43.5 Operating profit 50.0 45.3 133.8 123.9 176.7 Net financial items (13.7 ) 9.7 (20.2 ) 6.5 21.6 Profit before tax 36.3 55.0 113.6 130.4 198.3 Tax* 10.5 15.4 32.9 36.5 63.7 Profit after tax 25.8 39.7 80.7 94.0 134.6 Other comprehensive income Exchange differences on translating foreign operations, net of applicable tax 9.8 (8.0 ) 14.8 (3.7 ) (16.9 ) Total comprehensive income 35.6 31.7 95.5 90.3 117.7 * Estimated tax for 2009 quarterly results is 29%; 2008 28%. QUARTERLY RESULTS 2008 2009 Q1 Q2 Q3 Q4 2008 Q1 Q2 Q3 Operating revenues (USD million) 178.1 194.9 210.3 225.5 808.8 193.3 204.6 234.7 Operating profit (USD million) 37.4 41.2 45.3 52.8 176.7 40.8 43.0 50.0 Operating margin (%) 21.0 21.1 21.6 23.4 21.9 21.1 21.0 21.3 Pre-tax profit margin (%) 19.5 20.9 26.2 30.1 24.5 20.4 18.5 15.5 EPS after tax (USD) 0.221 0.261 0.354 0.418 1.198 0.250 0.240 0.230 EPS after dilution (USD) 0.219 0.258 0.350 0.413 1.185 0.250 0.240 0.230 SEGMENT INFORMATION JUL - SEP 2009 Figures in USD million Americas EMEA APAC Products Unallocated/Eliminations Total Operating revenues Endpoints 78.9 49.8 14.4 - - 143.1 Network 30.6 14.8 7.9 - - 53.3 VAS 20.2 13.5 4.6 - - 38.3 Total 129.7 78.1 26.9 131.7 (131.7 ) 234.7 Operating profit 14.0 6.6 1.8 37.9 (10.3 ) 50.0 Accounts receivable 75.2 57.4 15.7 148.3 Accounts payable 30.1 3.3 7.3 31.1 (28.6 ) 43.2 JUL - SEP 2008 Figures in USD million Americas EMEA APAC Products Unallocated/Eliminations Total Operating revenues Endpoints 74.2 49.0 14.9 - - 138.1 Network 19.6 15.0 5.2 - - 39.8 VAS 15.3 13.5 3.7 - - 32.5 Total 109.1 77.4 23.8 125.8 (125.8 ) 210.3 Operating profit 6.5 6.0 (0.1 ) 38.6 (5.7 ) 45.3 Accounts receivable 65.5 60.8 11.8 138.1 Accounts payable 29.7 3.8 6.5 30.5 (24.4 ) 46.1 JAN - SEP 2009 Figures in USD million Americas EMEA APAC Products Unallocated/Eliminations Total Operating revenues Endpoints 189.5 154.3 40.4 - - 384.2 Network 78.2 48.3 16.8 - - 143.3 VAS 55.3 36.5 13.3 - - 105.1 Total 323.0 239.1 70.5 376.1 (376.1 ) 632.6 Operating profit 29.3 22.0 3.8 102.3 (23.6 ) 133.8 Accounts receivable 75.2 57.4 15.7 148.3 Accounts payable 30.1 3.3 7.3 31.1 (28.6 ) 43.2 JAN - SEP 2008 Figures in USD million Americas EMEA APAC Products Unallocated/Eliminations Total Operating revenues Endpoints 187.9 158.2 43.6 - - 389.7 Network 48.2 43.1 15.4 - - 106.7 VAS 41.1 35.6 10.2 - - 86.9 Total 277.2 236.9 69.2 350.5 (350.5 ) 583.3 Operating profit 11.2 23.6 (0.3 ) 102.2 (12.9 ) 123.9 Accounts receivable 65.5 60.8 11.8 138.1 Accounts payable 29.7 3.8 6.5 30.5 (24.4 ) 46.1 JAN - DEC 2008 Figures in USD million Americas EMEA APAC Products Unallocated/Eliminations Total Operating revenues Endpoints 258.2 219.8 59.3 - - 537.3 Network 71.5 62.2 21.4 - - 155.1 VAS 56.4 45.9 14.1 - - 116.4 Total 386.1 327.9 94.8 496.8 (496.8 ) 808.8 Operating profit 14.2 30.1 (0.1 ) 156.4 (23.9 ) 176.7 Accounts receivable 41.2 69.5 15.2 - - 125.9 Accounts payable 29.1 31.5 8.0 28.8 (55.6 ) 41.8 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 SEP 31 DEC Figures in USD million 2009 2008 2008 ASSETS Non-current assets Intangible assets Goodwill, patents and development 389.9 390.8 386.5 Deferred income tax assets 5.0 5.0 4.8 Tangible assets 27.3 24.3 20.7 Other non-current assets 2.3 - - Total non-current assets 424.5 420.0 412.0 Current assets Inventory 47.1 55.4 51.4 Accounts receivable 148.3 138.1 125.9 Other current assets 10.5 17.2 7.6 Cash and bank deposits 245.7 93.6 174.8 Total current assets 451.6 304.4 359.7 TOTAL ASSETS 876.1 724.4 771.7 EQUITY AND LIABILITIES Equity Share capital 12.0 12.3 12.3 Treasury shares - (0.3 ) (0.3 ) Share premium 142.1 144.1 142.1 Other equity 413.9 322.6 351.0 Total equity 568.0 478.6 505.1 Non-current liabilities Non-current liabilities 1.5 22.1 1.8 Total non-current liabilities 1.5 22.1 1.8 Current liabilities Accounts payable 43.2 46.1 41.8 Tax deductions and duties payable (4.3 ) (1.2 ) 1.8 Taxes payable 50.6 28.1 45.8 Other current liabilities 217.1 150.7 175.4 Total current liabilities 306.6 223.6 264.8 TOTAL EQUITY AND LIABILITIES 876.1 724.4 771.7 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY JUL - SEP JAN - SEP Figures in USD million 2009 2008 2009 2008 Equity at beginning of period 532.4 445.9 505.1 435.1 Repurchase of shares (net) - - - (27.4 ) Dividend - - (21.0 ) (22.5 ) Profit after tax 25.8 39.7 80.7 94.0 Employee benefits - 1.1 (11.6 ) 3.1 Exchange differences on translating foreign operations 9.8 (8.0 ) 14.8 (3.7 ) Equity as of end of period 568.0 478.6 568.0 478.6 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS JUL - SEP JAN - SEP Figures in USD million 2009 2008 2009 2008 Cash flow from operations Profit before tax 36.3 55.0 113.6 130.4 Taxes paid (2.0 ) (2.0 ) (32.7 ) (37.8 ) Ordinary depreciation/ amortization 5.0 4.4 13.7 12.4 Amortization of capitalized development 9.5 7.2 26.9 19.0 Change in receivables/ payables/ inventories (13.3 ) (16.7 ) (16.6 ) (21.8 ) Change in other accounts 26.4 12.3 38.5 12.4 Effect of changes in exchange rates 10.1 (6.8 ) 17.2 (1.8 ) Net cash flow from operations 72.0 53.4 160.6 112.9 Cash flow from investments Investments in tangible/ intangible assets (3.0 ) (4.7 ) (12.6 ) (14.2 ) Capitalized development (11.0 ) (9.3 ) (32.7 ) (28.9 ) Investments in subsidiaries (0.1 ) - (0.3 ) (17.8 ) Other investments - - (2.0 ) - Net cash flow from investments (14.1 ) (14.0 ) (47.6 ) (60.9 ) Cash flow from financing Repayment/ drawdown of debt (20.0 ) - (20.0 ) - Repurchase of shares - - - (21.5 ) Dividend paid - - (21.0 ) (22.5 ) Net cash flow from financing (20.0 ) - (41.0 ) (44.0 ) Net change in liquid assets during the period 37.9 39.4 72.0 7.9 Liquid assets opening balance 208.1 53.5 174.8 85.2 Effect of exchange rate on cash (0.3 ) 0.7 (1.1 ) 0.5 Liquid assets at end of period 245.7 93.6 245.7 93.6 |
