Currently viewing and reading

TANDBERG Reports Third Quarter 2009 Results

Posted by Dana in October 16th 2009

TANDBERG (OSLO: TAA.OL), 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

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 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 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.”

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.