23 April 2009
TANDBERG Reports First Quarter 2009 Results
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=0D=0A=0D=0ATANDBERG Reports First Quarter 2009 Results=0D=0A=0D=0ARevenue=
of 193.3 MUSD and Operating Profit of 40.8 MUSD in 1Q09=0D=0A=0D=0AOSLO=
and NEW YORK, April 23, 2009 - TANDBERG=AE (OSLO: TAA.OL), today announced=
financial results for the first quarter ended March 31, 2009.=0D=0A=0D=0AOverview=
of 1Q09:=0D=0A=0D=0A*=0D=0A=0D=0ARevenue of 193.3 MUSD (+8.5%)=0D=0A=0D=0A*=
=0D=0A=0D=0AOperating profit of 40.8 MUSD (+9.2%)=0D=0A=0D=0A*=0D=0A=0D=0ACash=
flow from operations of 36.0 MUSD (+52%)=0D=0A=0D=0A*=0D=0A=0D=0AVolume=
of 16,610 units (+10.2%)=0D=0A=0D=0A*=0D=0A=0D=0ASignificant new products=
launched in the quarter=0D=0A=0D=0A*=0D=0A=0D=0AIndustry seeing effects=
of constrained capital expenditures=0D=0A=0D=0AFINANCIALS=0D=0AFirst quarter=
revenues were 193.3 MUSD compared with 178.1 MUSD in the same quarter last=
year, representing 9% year-over-year growth. Gross margin for the quarter=
was 66.0%, compared with 65.6% in the same quarter last year. Selling,=
general & administrative (SG&A) expenses for 1Q09 totaled 74.3 MUSD, compared=
with 69.8 MUSD in 1Q08. Operating profit was 40.8 MUSD compared with 37.4=
MUSD in the same quarter last year. Earnings per share (after tax) were=
0.25 USD in 1Q09 compared with 0.22 USD in the same quarter in 2008.=0D=0A=
=0D=0AThe Company generated cash flow from operations of 36.0 MUSD in the=
quarter, which after a net cash outflow from investments of 17.2 MUSD,=
gave total cash inflow of 18.8 MUSD. As of March 31, the Company had a=
cash balance of 193.4 MUSD and an equity ratio of 65.6%.=0D=0A=0D=0AFINANCIAL=
TABLES=0D=0A=0D=0AClick for financial tables.=0D=0A[http://www.tandberg.com/collateral/ir/qr_2009_q1.pdf?elq=3D68B8FB0E0151432DAC9DC3ACF131BCC0]=
=0D=0A=0D=0AOPERATIONS=0D=0AReviewing first quarter results, Fredrik Halvorsen,=
Chief Executive Officer, stated, “The first quarter reflected an unwavering=
focus on sales execution and balance sheet discipline at TANDBERG.=0D=0A=
=0D=0AThe quarter results were mixed. The video industry is seeing the effects=
of constrained capital expenditures and prolonged sales cycles across geographies.=
At the same time, TANDBERG’s flexible business model and operational integrity=
enabled high-quality earnings and strong cash flow.”=0D=0A=0D=0AThe quarter=
was also distinguished by significant new product introductions from the=
Company. Filling out an already strong personal video line-up, the E20=
video IP phone and Movi High-definition PC video solution started shipping=
this quarter. For executive offices and team rooms, the new TANDBERG Profile=
systems are making superior 1080p high-definition video conferencing accessible,=
with the 52″ single screens shipping this quarter followed by the 42″ single=
screen and 52″ dual screen systems in 2Q09. With the telepresence-grade=
TANDBERG Codec C60, which shipped in 1Q09, TANDBERG has provided its integrator=
channel with advanced solutions for building out installations easily and=
without compromising quality. These shipments complete a major product=
cycle upgrade for endpoints and the Company is confident that its portfolio=
is the strongest in the industry. The product line roll-out will be completed=
in 2Q09, with a focus on partner training, with the full impact to be seen=
in the second half of the year.=0D=0A=0D=0AThe interest in telepresence=
and video conferencing has never been higher. The Company believes the=
technology will continue to become essential to every communications platform.=
=0D=0A=0D=0AMARKETS=0D=0AIn 1Q 2009, TANDBERG sold 16,610 endpoint units=
compared with 15,077 endpoint units in the same quarter last year, a 10%=
year-on-year increase. Revenue from network products grew 47%, and service=
revenues grew 23% year-on-year.=0D=0A=0D=0AAMERICAS=0D=0ARevenue in the=
Americas during 1Q09 totaled 94.3 MUSD compared with 80.4 MUSD the same=
quarter last year. Canada and Southeast businesses performed well. Positive=
momentum in the Public Sector offset prolonged Enterprise decision cycles.=
The Theatre also had several marquee wins featuring TANDBERG Total Telepresence=
solutions.=0D=0A=0D=0AIn the first quarter, the Public Sector practice=
was successfully formed, merging the Federal team with State, Local, Education=
and Medical teams. The New Way of Working program was launched, drawing=
over 800 clients and partners to Executive Briefing Centers. Also in the=
quarter, the Theatre experienced strong network and service sales.=0D=0A=
=0D=0AThe Americas will continue to focus on ROI and business case selling=
for C-level executives. The roll out of the new product set to the partner=
base will be completed, and continued focus will be placed on the partner=
excellence program.=0D=0A=0D=0AEMEA=0D=0ARevenue in EMEA during 1Q09 totaled=
80.3 MUSD, compared with 77.7 MUSD in the same quarter last year. The most=
mature markets, including the Nordics and Germany, held up well, while=
emerging markets such as Russia and Eastern Europe showed weaker performance.=
=0D=0A=0D=0AEMEA strengthened its position in the Public Sector, particularly=
in the UK and the Nordics. It also established a strong competitive position=
with TANDBERG Total Telepresence and its interoperability story. In addition,=
the Theatre had strong network and service sales.=0D=0A=0D=0AGoing forward,=
EMEA will continue to execute around the telepresence initiative and focus=
on educating the partner network on the new solutions. The Theatre will=
also continue tight cost control.=0D=0A=0D=0AASIA PACIFIC=0D=0ARevenue=
in APAC during 1Q09 totaled 18.7 MUSD, compared with 20.0 MUSD in the same=
quarter last year. The Theatre’s disappointing performance reflected a=
challenging economic environment across different markets.=0D=0A=0D=0AResults=
in North Asia reflected a solid performance in China while Japan faced=
a particularly difficult environment and execution issues. Continued investment=
in the organization and channels is a priority.=0D=0A=0D=0ASouth Asia experienced=
longer decision cycles across all regions in the enterprise business.=0D=0A=
=0D=0A2009 STRATEGIC INITIATIVES=0D=0AVideo conferencing: As the economic=
environment continues to be a challenge, the underlying drivers of video=
conferencing remain in place. Organizations are turning to video to do=
more with less and to transform their businesses to meet the changing needs=
of the market. These companies are choosing TANDBERG solutions for an absolute=
level of quality, the completeness of the portfolio and ease-of-use. In=
addition, customers have labeled TANDBERG as a “safe investment” with low=
Total Cost of Ownership, strong integration with Microsoft Office Communications=
Server 2007 and interoperability across product lines and with legacy third=
party systems.=0D=0A=0D=0AFurther validating this technology leadership,=
TANDBERG was the first company to demonstrate 1080p at 60 frames per second.=
The demonstration at VoiceCon in Orlando, FL, showcased TANDBERG FluidHDtm,=
the most natural video communication experience possible.=0D=0A=0D=0AWith=
an unparalleled product line now shipping, focus will be on training the=
sales teams and partners and bringing more Executive Briefing Centers online.=
=0D=0A=0D=0ANetwork-centric approach: As customers recognize the benefits=
of video, the need for scalable video solutions will grow. With an intelligent=
network at the core of large deployments of endpoints, management and security=
controls make it possible to have tens of thousands of users in a single=
video community. The TANDBERG Video Communication Server and TANDBERG Management=
Suite, at the video network core, have been enhanced this quarter for scalability=
and the TANDBERG MSE 8000 multipoint control unit continues to have the=
highest High Definition port capacity.=0D=0A=0D=0AThe Company’s network-centric=
approach to scalable video will enable video endpoints to fully interoperate=
across solutions and markets.=0D=0A=0D=0ATelepresence. The momentum for=
telepresence continues to build. Early success for the TANDBERG T3 is being=
driven by its ease of use, high quality experience and its interoperability=
with standards compliant video conferencing, including PC video and third-party=
telepresence systems.=0D=0A=0D=0AThe opportunity in the telepresence market=
now lies with federation between service, network and video vendors. To=
capture this market, TANDBERG will develop a credible service provider=
partnering proposition and offer certified managed services to ensure the=
best possible telepresence experience for the customer.=0D=0A=0D=0AOSLO=
and NEW YORK, April 23, 2009=0D=0AThe Board of Directors of TANDBERG asa=
=0D=0A=0D=0AJan Chr. Opsahl (sign.)=0D=0AChairman=0D=0A=0D=0AFredrik Halvorsen=
(sign.)=0D=0AChief Executive Officer=0D=0A=0D=0AWEBCAST/CONFERENCE CALL=
DETAILS=0D=0A=0D=0AToday 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 from Oslo, Norway. Additionally, a PowerPoint presentation=
will accompany the webcast /conference call. To access the webcast, please=
visit:=0D=0A=0D=0Ahttps://tandbergevents.webex.com=0D=0A[https://tandbergevents.webex.com/]=
=0D=0A=0D=0AFor 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.=0D=0A=0D=0ASecond quarter results will be presented on July 16,=
2009 at 5:45 pm CET / 11:45 am ET. For further information please contact=
Geir Olsen, ph. +44 7766254782.=0D=0A=0D=0AFINANCIAL TABLES=0D=0A=0D=0AClick=
for full press release plus financial tables.=0D=0A[http://www.tandberg.com/collateral/ir/qr_2009_q1.pdf?elq=3D68B8FB0E0151432DAC9DC3ACF131BCC0]=
=0D=0A=0D=0AFINANCIAL STATEMENTS - BASIS FOR PREPARATION=0D=0AThe enclosed=
consolidated condensed financial statements have been prepared in accordance=
with IAS 34, “Interim Financial Reporting”.=0D=0A=0D=0ASIGNIFICANT ACCOUNTING=
POLICIES=0D=0AThe 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.=0D=0A=0D=0AABOUT TANDBERG=0D=0ATANDBERG=
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=0D=0A=0D=0Awww.tandberg.com=0D=0A[http://www.tandberg.com/]=
=0D=0A=0D=0Afor more information.=0D=0A=0D=0ATANDBERG is a registered trademark=
or trademark in the U.S. and certain other countries. All other trademarks=
are property of their respective owners.=0D=0A=0D=0A=0D=0A=0D=0A =0D=0ACopyright=A9=
2007 TANDBERG =0D=0A1212 Avenue of the Americas. 24th Floor. New York,=
NY 10036 +212.692.6500 =0D=0APhilip Pedersens vei 20. 1366. Lysaker. Norway=
+47.67.125.125 =0D=0AContact a TANDBERG office near you. =0D=0A=0D=0APlease=
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