18 Februar 2010
TANDBERG Reports Fourth Quarter 2009 Results
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=0D=0A=0D=0ATANDBERG Reports Fourth Quarter 2009 Results =0D=0ARevenue of 270.0=
MUSD and Operating Profit of 60.0 MUSD in 4Q09=0D=0AOSLO and NEW YORK,=
February 18, 2010 - TANDBERG=AE (OSLO: TAA.OL), today announced unaudited=
financial results for the fourth quarter ended December 31, 2009. =0D=0AOverview=
of 4Q09:=0D=0A=0D=0A* =0D=0ARevenue of 270.0 MUSD (+20%) with record performance=
in all Theatres=0D=0A=0D=0A* =0D=0AOperating profit of 60.0 MUSD (+14%)=
=0D=0A=0D=0A* =0D=0ACash balance of 306.6 MUSD and no debt =0D=0A=0D=0A*=
=0D=0ANo disruption to organization and partner base from pending Cisco=
transaction=0D=0A=0D=0A* =0D=0ATANDBERG first company to demonstrate immersive=
three-screen telepresence interoperability with Cisco TelePresence as well=
as High Definition interoperability with Microsoft Office Communicator=
R2 =0D=0A=0D=0AFINANCIALS=0D=0AFourth quarter revenues were 270.0 MUSD=
compared with 225.5 MUSD in the same quarter last year, representing 20%=
year-over-year growth. Gross margin for the quarter was 65.3%, compared=
with 66.6% in the same quarter last year. Selling, General & Administrative=
(SG&A) expenses for 4Q09 totaled 101.4 MUSD, compared with 85.3 MUSD in=
4Q08. Operating profit was 60.0 MUSD compared with 52.8 MUSD in the same=
quarter last year. =0D=0AFor the full year, revenue totaled 902.6 MUSD=
in 2009 compared with 808.8 MUSD in 2008, or 12% growth. Operating profit=
was 193.8 MUSD for 2009 and 176.7 MUSD for 2008.=0D=0AThe Company generated=
cash flow from operations of 75.1 MUSD in the quarter, which after a net=
cash outflow from investments of 14.2 MUSD, gave a total cash inflow of=
60.9 MUSD. As of December 31, the Company had a cash balance of 306.6 MUSD,=
no debt, and an equity ratio of 64.0%. =0D=0A=0D=0AFINANCIAL TABLES=0D=0AClick=
for financial tables [http://www.tandberg.com/collateral/ir/qr_2009_q4.pdf?elq=3De165e9206ddd4d7cba143233c8931c17].=
=0D=0A=0D=0AOPERATIONS=0D=0AReviewing fourth quarter results, Fredrik Halvorsen,=
Chief Executive Officer, stated, “Consistent execution in the field and=
year-end spending drove results for the fourth quarter. Importantly, the=
Company’s continued investments in its employees, partners and product=
portfolio have positioned the Company to drive market expansion. Throughout=
2009, TANDBERG continued to hire and train employees, and supported the=
growth of its partners through channel-specific training programs and by=
providing access to 29 state-of-the-art demonstration centers. Investments=
in total solution selling, along with JITC certification of industry-leading=
network products, resulted in strong network growth for the year. In addition,=
continuing its commitment to open standards and interoperability, TANDBERG=
demonstrated high-definition interoperability between standards-based video=
and telepresence systems and Microsoft Office Communicator R2. The Company=
was also the first to demonstrate immersive three-screen telepresence interoperability=
with Cisco TelePresence for expanded company-to-company collaboration.=
=0D=0AIn 2009, TANDBERG and its partners continued to outgrow the rest of=
the industry with no disruption from the pending Cisco transaction. TANDBERG=
employees are looking forward to joining the Cisco organization, bringing=
greater innovation to the market and accelerating the adoption of video=
and telepresence. The transaction is expected to close in the first half=
of calendar 2010.”=0D=0A=0D=0AMARKETS=0D=0AIn 4Q09, TANDBERG sold 19,289=
endpoints compared with 17,584 endpoint units in the same quarter last=
year, a 10% year-on-year increase. Revenue from network products grew 39%,=
accounting for 25% of group revenues. The Company saw record performance=
from all three Theatres. =0D=0A=0D=0AAMERICAS =0D=0ARevenue in the Americas=
during 4Q09 totaled 129.8 MUSD compared with 108.9 MUSD the same quarter=
last year. The quarter results reflected strong Commercial sector performance,=
particularly in the Northeast region, and good execution from a highly=
motivated sales force. =0D=0AAcross the Theatre, total solution selling=
delivered strong infrastructure sales, with recommendations from the installed=
base becoming a major source of new business. Strong momentum and C-level=
participation drove new adopters in telepresence. Sales force productivity=
was at an all time high, driven by an experienced team and continued strong=
investment. Public Sector realignment was also a factor, with customers=
experiencing synergies from the combined Federal and State & Local, Education=
and Medical (SLEM) organizations. In addition, the Company’s loyal base=
of partners increased investment in the business.=0D=0AThe Americas team=
will continue its strong focus on field execution and ramp up investments=
in selected verticals and geographies.=0D=0A=0D=0AEMEA=0D=0ARevenue in=
EMEA during 4Q09 totaled 110.1 MUSD, compared with 91.0 MUSD in the same=
quarter last year. France, Benelux and Russia performed particularly well,=
while Central Eastern Europe continued to experience a challenging climate.=
The highly motivated EMEA sales force executed well, with no disruption=
from the Cisco announcement.=0D=0ASolution selling resulted in strong network=
and service sales, while the telepresence customer base also drove net=
new infrastructure revenue. All four partner groups grew revenue in the=
quarter, with particularly strong performances from Videoconferencing Specialists=
and Service Providers.=0D=0AThe EMEA team will continue to focus on partner=
development.=0D=0A=0D=0AASIA PACIFIC =0D=0ARevenue in APAC during 4Q09=
totaled 30.1 MUSD, compared with 25.6 MUSD in the same quarter last year.=
=0D=0ANorth Asia had solid execution across China and Japan with the right=
team and leadership in place. Continued investment in the channel and the=
organization led to several defining wins in the region.=0D=0ASouth Asia=
had a solid quarter with strong traction across the region in healthcare,=
finance and defense, including several key telepresence wins. The region=
also saw strong momentum in its partner base.=0D=0ABuild out of the team=
and partner base remains the priority for the APAC Theatre.=0D=0A=0D=0AMARKET=
EXPANSION=0D=0ATANDBERG has set out to build a global video community,=
where everyone has access to high quality video. In order to achieve this=
goal, systems must be interoperable for company-to-company communication.=
TANDBERG has consistently been the first to deliver the most advanced interoperability=
solutions to the market, and was the first to demonstrate immersive three-screen=
telepresence interoperability with Cisco TelePresence, as well as High=
Definition interoperability with Microsoft Office Communicator R2. (View=
video: http://www.tandberg.com/media/index.jsp?id=3D1518 [http://www.tandberg.com/media/index.jsp?id=3D1518])=
=0D=0A=0D=0ATRANSACTION UPDATE ON CISCO ACQUISITION=0D=0ATANDBERG has undertaken=
the required regulatory filings in all jurisdictions. As previously communicated,=
the transaction is anticipated to close during the first half of 2010.=
Payment to shareholders who have tendered is anticipated within 14 days=
after the satisfaction or waiver of all conditions to the offer, including=
applicable regulatory approvals. =0D=0AOSLO and NEW YORK, February 18,=
2010=0D=0AThe Board of Directors of TANDBERG asa=0D=0AJan Chr. Opsahl (sign.)=
=0D=0AChairman=0D=0AFredrik Halvorsen (sign.)=0D=0AChief Executive Officer=
=0D=0A=0D=0ACONTACT DETAILS=0D=0AWhile today’s financials release will not=
be accompanied by a live presentation, a PowerPoint presentation can be=
found on the Company’s website, www.tandberg.com [http://www.tandberg.com/].=
=0D=0AFirst quarter results will be made available on April 22, 2010 at=
5:45 pm CET / 11:45 am ET. For further information, please contact Chiyo=
Utsumi, ph. +44 7787 27 8800 / chiyo.utsumi@tandberg.com [mailto:chiyo.utsumi@tandberg.com]=
or Geir Olsen, geir.olsen@tandberg.com [mailto:geir.olsen@tandberg.com].=
=0D=0A=0D=0AFINANCIAL TABLES=0D=0AClick for full press release plus financial=
tables [http://www.tandberg.com/collateral/ir/qr_2009_q4.pdf?elq=3De165e9206ddd4d7cba143233c8931c17].=
=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 www.tandberg.com [http://www.tandberg.com/] for more=
information.=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=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 click here to unsubscribe=
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