16 Juli 2009
TANDBERG Reports Second Quarter 2009 Results
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=0D=0A=0D=0ATANDBERG Reports Second Quarter 2009 Results=0D=0A=0D=0ARevenue=
of 204.6 MUSD and Operating Profit of 43.0 MUSD in 2Q09=0D=0A=0D=0AOSLO=
and NEW YORK, July 16, 2009 - TANDBERG=AE (OSLO: TAA.OL), today announced=
financial results for the second quarter ended June 30, 2009.=0D=0A=0D=0AOverview=
of 2Q09:=0D=0A=0D=0A*Revenue of 204.6 MUSD (+5.0%)=0D=0A*Operating profit=
of 43.0 MUSD (+4.3%)=0D=0A*Cash flow from operations of 52.6 MUSD (+47%)=
=0D=0A*Healthy balance sheet with 208.1 MUSD in cash=0D=0A*Strong reception=
of new products=0D=0A=0D=0AFINANCIALS=0D=0ASecond quarter revenues were=
204.6 MUSD compared with 194.9 MUSD in the same quarter last year, representing=
5% year-over-year growth. Gross margin for the quarter was 66.1%, compared=
with 65.9% in the same quarter last year. Selling, general & administrative=
(SG&A) expenses for 2Q09 totaled 78.6 MUSD, compared with 77.0 MUSD in=
2Q08. Operating profit was 43.0 MUSD compared with 41.2 MUSD in the same=
quarter last year. Earnings per share (after tax) was 0.24 USD in 2Q09=
compared with 0.26 USD in the same quarter in 2008.=0D=0A=0D=0AThe Company=
generated cash flow from operations of 52.6 MUSD in the quarter, which=
after a net cash outflow from investments of 16.2 MUSD and dividends paid=
of 21.0 MUSD, gave total cash inflow of 15.4 MUSD. As of June 30, the Company=
had a cash balance of 208.1 MUSD and an equity ratio of 64.4%.=0D=0A=0D=0AFINANCIAL=
TABLES=0D=0A=0D=0AClick for financial tables=0D=0A[http://www.tandberg.com/collateral/ir/qr_2009_q2.pdf?elq=3D267CBC83F09842B89C1BAA07CFD1BEB1]=
=0D=0A=0D=0A. =0D=0A=0D=0AOPERATIONS=0D=0AReviewing second quarter results,=
Fredrik Halvorsen, Chief Executive Officer, stated, “The second quarter=
was marked by consistent execution. Equipped with the strongest product=
portfolio in the industry, TANDBERG and its loyal partners executed well=
on the value-based selling model. Strong cash flow generation and a healthy=
balance sheet reflect the Company’s long-term approach.=0D=0A=0D=0A”TANDBERG=
has made steady progress in positioning itself for the second half through=
its focus on video network leadership and standards-based telepresence.=
In network products, the Company cemented its technology leadership by=
being the only vendor to demonstrate 1080p symmetric transcoding.=0D=0A=
=0D=0A”In telepresence, TANDBERG has taken a community approach to not lock=
anyone out of the meeting. The TANDBERG telepresence server is a unique=
differentiator for the Company, enabling connectivity with Microsoft Office=
Communications Server clients and immersive third-party telepresence systems=
that may be at partner or supplier locations. This seamless interoperability=
and B2B communication makes TANDBERG the telepresence solution of choice=
for organizations such as Ericsson and Bayer.=0D=0A=0D=0A”The Company has=
focused on the network and telepresence markets, resulting in increased=
market share. The Company will also add the Small and Medium-Sized Business=
(SMB) market to its development plans. As a first step, the Company launched=
the TANDBERG Quick Set C20, providing easy access to the quality video=
previously available only to larger customers.”=0D=0A=0D=0AMARKETS=0D=0AIn=
2Q09, TANDBERG sold 15,663 endpoint units compared with 16,483 endpoint=
units in the same quarter last year, a 5% year-on-year decrease (a 4% increase=
excluding OEM units).=0D=0A=0D=0ARevenue from network products grew 25%,=
and service revenues grew 22% year-on-year.=0D=0A=0D=0AAMERICAS=0D=0ARevenue=
in the Americas during 2Q09 totaled 99.0 MUSD compared with 87.8 MUSD the=
same quarter last year. The Northeast Commercial and the Public Sector=
teams performed particularly well, while the Theatre experienced funding=
delays at the State and Local levels.=0D=0A=0D=0AThe Theatre saw record=
interest from C-level executives and drew an enthusiastic response from=
customers overall, with TANDBERG booth traffic increasing 100% over 2008=
at InfoComm, a major industry trade show. The introduction of the new SMB=
product during the US partner summit was received well by partners.=0D=0A=
=0D=0AThe Americas Public Sector group enters the third quarter with the=
strongest team in the industry and a total Federal solution that includes=
JITC Certified endpoints, infrastructure and management platform. The Public=
Sector team has strong vertical expertise in Education, Transportation,=
and Energy, key areas for the stimulus funding, and was awarded “Best in=
Show” for demonstrating telepresence at the recent DODIIS conference.=0D=0A=
=0D=0AGoing forward, the Americas will develop an SMB practice and solidify=
the Company’s leadership in value-based selling. The Theatre will also=
continue to execute on the channel initiative.=0D=0A=0D=0AEMEA=0D=0ARevenue=
in EMEA during 2Q09 totaled 80.7 MUSD, compared with 81.7 MUSD in the same=
quarter last year. Demonstration activity was at a record high, and the=
Netherlands, Germany, Italy and the Middle East performed well with several=
key customer wins. The Theatre continued to experience constrained customer=
spending and prolonged sales cycles.=0D=0A=0D=0AThe EMEA Theatre received=
strong customer feedback on the network portfolio, with repeat buying in=
the quarter. In addition, the EMEA team delivered excellent services sales=
across all markets and had a strong positive response to new products,=
including telepresence and the Quick Set C20. There was also good traction=
with partners.=0D=0A=0D=0AThe EMEA team will continue to drive new solutions=
through the partner network, including the TANDBERG Codec C20, C60, and=
C90, and continue to execute on the channel initiative. The Theatre will=
make targeted investments in both people and partners.=0D=0A=0D=0AASIA=
PACIFIC=0D=0ARevenue in APAC during 2Q09 totaled 24.9 MUSD, compared with=
25.3 MUSD in the same quarter last year. The team delivered a significant=
Australia deal in the New South Wales Department of Education and Training,=
equipping over 2,300 schools.=0D=0A=0D=0AIn North Asia, China experienced=
good traction with high-profile customer wins, and identified improvement=
opportunities in Japan. The Region will see continued investment in=0D=0A=
=0D=0Athe organization, with particular emphasis on an improvement plan=
for Japan. The South Asia team performed well, and observed strong interest=
in the telepresence solution.=0D=0A=0D=0A2009 STRATEGIC INITIATIVES=0D=0AEntering=
2009, the Company’s priorities were to take a network-centric approach=
to video, to establish technology leadership in telepresence, and to make=
high quality video accessible to everyone. TANDBERG made distinct progress=
towards these goals in the second quarter.=0D=0A=0D=0ANetwork-centric approach:=
TANDBERG expanded its network portfolio in the quarter. First, TANDBERG=
released 1080p capability in its multipoint control units with no port=
loss, solidifying its technology leadership. The Company also became the=
only vendor to demonstrate1080p symmetric transcoding, an advanced quality=
standard.=0D=0A=0D=0AIn addition, the Company introduced a compact version=
of the award winning chassis-based TANDBERG Telepresence Server and the=
Compliance Appliance, an industry-first scalable recording solution serving=
industries from healthcare to finance.=0D=0A=0D=0ATelepresence: The Company’s=
Total Telepresence portfolio experienced strong traction with leading Fortune=
500 companies, including Ericsson and Bayer, who are selecting TANDBERG=
as a way to drive efficiencies, improve business processes and decrease=
carbon emissions.=0D=0A=0D=0ATANDBERG’s approach to telepresence is to=
bridge the worlds of video conferencing and telepresence, regardless of=
network or product. Putting the TANDBERG Telepresence Server at the core=
of the network enables customers to build a video community and strongly=
differentiates TANDBERG.=0D=0A=0D=0A*As previously introduced, the interoperability=
between Microsoft Office Communications Server 2007 and TANDBERG Telepresence=
Server offers customers a rich and integrated communications experience.=
=0D=0A*The Company announced in the second quarter that the TANDBERG telepresence=
is the first and only immersive telepresence solution that maintains the=
multi-screen, high-definition telepresence experience when calling out=
to a third-party telepresence system.=0D=0A*In addition, TANDBERG customers=
can connect with customers and suppliers. This ability will be enhanced=
through a memorandum of understanding with BT to deliver the first global=
non-proprietary solution for inter-company telepresence and video conferencing.=
=0D=0A=0D=0AVideo accessible to everyone: Bringing video to a wider audience,=
TANDBERG announced that it will serve the SMB market. The TANDBERG Quick=
Set C20, introduced in the second quarter, is the first-of-its-kind 1080p=
video conferencing solution designed specifically to meet the unique needs=
of the SMB. The Quick Set C20 makes implementing high-quality, easy-to-use=
visual communications solutions, or expanding existing solutions, simple.=
=0D=0A=0D=0AOSLO and NEW YORK, July 16, 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. 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 +1.617.614.3933 (international), +1.800.203.4313 (U.S. callers)=
and 0808.234.7616 (U.K.callers). The audience passcode for the call is=
TANDBERG.=0D=0A=0D=0AThird quarter results will be presented on October=
15, 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_q2.pdf?elq=3D267CBC83F09842B89C1BAA07CFD1BEB1]=
=0D=0A=0D=0A. =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=
click here to unsubscribe =0D=0A[http://now.eloqua.com/u.asp?s=3D206&elq=3DDFE99818753A4888BBC82E8838A00EFC]=
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