14 Oktober 2008
TANDBERG Reports Third Quarter 2008 Results
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=0D=0A =0D=0ARevenue of 210.3 MUSD and Operating Profit of 45.3 MUSD in=
3Q08 =0D=0A =0D=0AOSLO and NEW YORK, October 14, 2008 - TANDBERG=AE (OSLO:=
TAA.OL), today =0D=0Aannounced unaudited financial results for the third=
quarter ended September =0D=0A30, 2008. =0D=0A =0D=0AOverview of 3Q08:=
=0D=0A =0D=0A*Revenue of 210.3 MUSD with volume of 17,487 units =0D=0A*Operating=
profit of 45.3 MUSD and pre-tax profit of 55.0 MUSD =0D=0A*Cash flow from=
operations of 53.4 MUSD =0D=0A*Launched full standards-compliant telepresence=
portfolio =0D=0A*Expanded relationship with HP =0D=0A =0D=0AFINANCIALS=
=0D=0AThird quarter revenues were 210.3 MUSD compared with 165.3 MUSD=
in the same =0D=0Aquarter last year, representing 27% year-over-year growth.=
Gross margin for =0D=0Athe quarter was 65.9%, compared with 65.5% in the=
same quarter last year. =0D=0ASelling, general & administrative (SG&A)=
expenses for 3Q08 totaled 81.7 =0D=0AMUSD, compared with 62.9 MUSD in=
the same quarter last year. Operating =0D=0Aprofit was 45.3 MUSD compared=
with 38.7 MUSD in the same quarter last year. =0D=0AEarnings per share=
(after tax) were 0.35 USD in 3Q08 compared with 0.22 USD =0D=0Ain the=
same quarter last year. =0D=0A =0D=0AThe Company generated cash flow from=
operations of 53.4 MUSD in the quarter, =0D=0A =0D=0Awhich after a net=
cash outflow from investments of 14.0 MUSD, gave a total =0D=0Acash inflow=
of 39.4 MUSD. As of September 30, the Company had a cash balance =0D=0A=
=0D=0Aof 93.6 MUSD and an equity ratio of 66.1%. =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_2008_q3.pdf?elq=3DCC5C263AD44C4BA6BC107153BDBCA629]=
=0D=0A =0D=0A. =0D=0A =0D=0AOPERATIONS =0D=0AReviewing third quarter=
results, Fredrik Halvorsen, Chief Executive Officer, =0D=0A =0D=0Astated,=
“During challenging economic times, our customers are turning to =0D=0Avideo=
to help them reduce costs and stay competitive. Video has the =0D=0Apotential=
to significantly reduce costs and offer a defendable Return on =0D=0AInvestment,=
contingent on three conditions being met. First, there must be a =0D=0A=
=0D=0Acomplete portfolio for enterprise-wide deployment. Second, the ability=
to =0D=0Aseamlessly integrate video conferencing and telepresence is required=
to =0D=0Amaximize the benefits and usage of the deployment. Third, a global=
service =0D=0Aand delivery capability will ease implementation and protect=
the investment. =0D=0A =0D=0ATANDBERG delivered on these three imperatives=
in the third quarter, =0D=0Astrengthening its competitive positioning.”=
=0D=0A =0D=0ALaunch of an industry-defining telepresence portfolio. Expanding=
the market, =0D=0A =0D=0ATANDBERG introduced a telepresence portfolio that=
includes the =0D=0Astandards-compliant immersive TANDBERG Telepresence=
T3 system, a new =0D=0Atelepresence server and a new package of TANDBERG-certified=
services that =0D=0Acomplete the telepresence experience. According to=
Tim Cureton, group head =0D=0Aof telecommunications at HSBC, ‘The TANDBERG=
T3 will take our use of =0D=0Acollaborative global telepresence meetings=
to a new level, in addition to =0D=0Aadding to our portfolio of green=
technologies that reduce unnecessary travel =0D=0A =0D=0Aexpense and maintain=
our status as a carbon-neutral company.’ =0D=0A =0D=0AEnabling seamless=
integration of telepresence and video conferencing, in =0D=0AHigh Definition.=
The TANDBERG Telepresence Server bridges the worlds of =0D=0Atelepresence=
and video conferencing, enabling immersive and cost-effective =0D=0Atelepresence=
across the enterprise. Dominick Dodd, Principal Analyst at =0D=0AFrost=
& Sullivan, concluded, ‘This announcement is part of a bold move by =0D=0ATANDBERG=
to leap frog the current generation of telepresence solutions. To =0D=0Afully=
realize all of the extensive benefits of telepresence, organizations =
=0D=0Amust be able to connect with their existing base of video conferencing=
=0D=0Asystems and desktops, and with those of customers and suppliers.=
TANDBERG =0D=0Ahas ‘joined the dots’ of the telepresence puzzle, pulling=
together the =0D=0Aessential elements of interoperability, services, and=
network with a =0D=0Acomprehensive range of endpoint options.’ =0D=0A=
=0D=0AFurther extending and complementing global partner delivery capabilities.=
HP =0D=0A =0D=0Aand TANDBERG expanded their relationship in the third quarter.=
TANDBERG =0D=0Aannounced that the Company will provide HP’s world-class=
managed service and =0D=0A =0D=0Aglobal network solution as an option for=
its global customer base, providing =0D=0A =0D=0Atelepresence and traditional=
video conferencing customers with greater =0D=0Aquality and reliability.=
At the same time, HP will resell TANDBERG =0D=0Atelepresence and high-definition=
visual communication products to enterprise =0D=0A =0D=0Acustomers who=
also purchase HP Halo managed service offerings. =0D=0A =0D=0AMARKETS=
=0D=0AIn 2008, TANDBERG sold 17,487 endpoint units compared with 15,398=
endpoint =0D=0Aunits in the same quarter last year, a 14% increase. Network=
products grew =0D=0A111% year-on-year in revenue terms. =0D=0A =0D=0AAMERICAS=
=0D=0ARevenue in the Americas during 3Q08 totaled 109.1 MUSD compared=
with 92.5 =0D=0AMUSD the same quarter last year. Federal performance was=
strong with solid =0D=0Aexecution across all areas. The Mid-Atlantic,=
Southeast and Midwest regions =0D=0Aalso performed well. =0D=0A =0D=0AProductivity-based=
selling continued to yield good results despite longer =0D=0Adecision=
cycles. Services sales improved, and customer and partner feedback =0D=0Aon=
the new telepresence portfolio was outstanding. Strong activity and =0D=0Ainterest=
levels continued. =0D=0A =0D=0AThe Americas team will continue to invest=
in productivity-based selling and =0D=0Afocus on global channel development.=
=0D=0A =0D=0AEMEA =0D=0ARevenue in EMEA during 3Q08 totaled 77.4 MUSD,=
compared with 54.0 MUSD in =0D=0Athe same quarter last year. Healthy growth=
continued in the Theater, albeit =0D=0Aat a slower rate than the first=
half due to the challenging economic =0D=0Aclimate. North and Central=
Europe continued to perform well. =0D=0A =0D=0AThe new products and services=
portfolio was well-received by customers and =0D=0Achannel partners. A=
record number of partners attended the annual EMEA =0D=0APartner Summit.=
The Theatre saw traction with Systems Integrators and Video =0D=0AConferencing=
Specialists within the quarter, reflecting the value of the =0D=0Apartner=
model. =0D=0A =0D=0AThe EMEA team will continue to invest in demonstrating=
Return on Investment =0D=0Aand in further building out partner network=
and competencies. =0D=0A =0D=0AASIA PACIFIC =0D=0ARevenue in APAC during=
3Q08 totaled 23.8 MUSD, compared with 18.9 MUSD in =0D=0Athe same quarter=
last year. Continued investment in channels and the =0D=0Aorganization=
will be needed in the fourth quarter. =0D=0A =0D=0AWhile not closed in=
the quarter, North Asia progressed well with several =0D=0Alarge deals.=
Continued investment is required for sustainability in China. =0D=0A =
=0D=0ASouth Asia recorded good progress in government sales throughout the=
region. =0D=0A =0D=0AThere was also good momentum in the enterprise business=
in Singapore and =0D=0AHong Kong, and in the education vertical in Australia.=
=0D=0A =0D=0ASTRATEGIC INITIATIVES =0D=0ATANDBERG has set priorities=
to capture market expansion and differentiate =0D=0Athrough a scalable=
and robust network solution. The newly launched immersive =0D=0A =0D=0Atelepresence=
system, complemented by the telepresence server and service =0D=0Aoptions,=
fulfill these commitments. They join the portfolio announced in the =0D=0A=
=0D=0Asecond quarter that includes the TANDBERG Telepresence T1 single=
display =0D=0Asystem and the TANDBERG Codec C90 telepresence engine. =
=0D=0A =0D=0A*The TANDBERG Telepresence T3 immersive system provides an=
executive “across =0D=0A =0D=0Athe table” experience. The exclusive design=
works in tandem with innovative =0D=0Atechnology invisible to the user.=
The Full HD (1080p) telepresence engines, =0D=0Alarge Full HD screens=
and PrecisionHD 1080p cameras, which are positioned =0D=0Afor direct eye=
contact, ensure that participants appear as if they are in =0D=0Aperson.=
The TANDBERG Telepresence T3 is interoperable with all =0D=0Astandards-compliant=
PC, desktop and room video systems, including HD =0D=0Asystems. =0D=0A*The=
industry-first TANDBERG Telepresence Server bridges the worlds of =0D=0Atelepresence=
and video conferencing. Any type of standards-compliant video =0D=0Asystem=
can be added to a TANDBERG telepresence meeting at the best possible =
=0D=0Aquality, including HD. The server also provides robustness and reliability=
=0D=0Athrough the unique TANDBERG transcoding technology, which allows=
systems =0D=0Awith varying capabilities on different networks with different=
bandwidths to =0D=0A =0D=0Ajoin into the same telepresence meeting. =0D=0A*TANDBERG=
Total Service is delivered by a partner network to offer customers =0D=0A=
=0D=0Aa global offering with localized delivery. Certified managed service=
=0D=0Aproviders ensure continuous managed or hosted service performance.=
The =0D=0ATANDBERG Total Service portfolio includes fulfillment, network=
and =0D=0Amanagement services to guarantee consistency at every stage.=
=0D=0A =0D=0AAnother priority for TANDBERG has been to deepen strategic=
relationships. =0D=0ATANDBERG and HP recently unveiled a new managed service=
offering and an =0D=0Aexpanded reseller agreement. Through the HP and=
TANDBERG alliance, both =0D=0Acompanies will offer customers greater access=
to products and services that =0D=0Acan unite globally dispersed teams=
and enhance the communication experience. =0D=0A =0D=0AIncluded in the=
alliance: 1) HP will resell TANDBERG telepresence and =0D=0Ahigh-definition=
visual communication products to enterprise customers who =0D=0Aalso purchase=
HP Halo managed service offerings; 2) TANDBERG will provide =0D=0AHP’s=
world-class managed service and global network solution, the HP Halo =
=0D=0AVideo Collaboration Service, as an option for its global customer=
base; 3) =0D=0AHP will continue to manufacture and sell its current line=
of fully immersive =0D=0A =0D=0Atelepresence hardware solutions. The resulting=
improvements in the overall =0D=0Avideo collaboration experience can drive=
significantly higher usage rates =0D=0Athat can increase productivity=
at the workplace while decreasing travel =0D=0Acosts and carbon emissions.=
=0D=0A =0D=0AOSLO and NEW YORK, October 14, 2008 =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 =0D=0AHalvorsen,=
Chief Executive Officer, will host a live webcast/conference call =0D=0A=
=0D=0Afrom Oslo, Norway. Additionally, a PowerPoint presentation will accompany=
=0D=0Athe 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 =0D=0A+1.617.614.4912 (international), +1.800.591.6948=
(U.S. callers) and =0D=0A0808.234.7616 (U.K. callers). The audience passcode=
for the call is =0D=0ATANDBERG. =0D=0A =0D=0AAn online video archive=
of the broadcast will be available immediately =0D=0Afollowing the call=
at =0D=0A =0D=0Ahttp://www.tandberg.com/ir/tandberg_q3_2008_earnings_display.jsp=
=0D=0A[http://www.tandberg.com/ir/tandberg_q3_2008_earnings_display.jsp]=
=0D=0A =0D=0AFourth quarter results will be presented on February 2, 2009=
at 5:45 pm CET =0D=0A/ 11:45 am ET. For further information please contact=
Geir Olsen, ph. +44 =0D=0A7825 021739. =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_2008_q3.pdf?elq=3DCC5C263AD44C4BA6BC107153BDBCA629]=
=0D=0A =0D=0A. =0D=0A =0D=0AFINANCIAL STATEMENTS - BASIS FOR PREPARATION=
=0D=0AThe enclosed consolidated condensed financial statements have been=
prepared =0D=0Ain 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 =0D=0Aof the financial=
statements are consistent with the policies used in the =0D=0Aannual financial=
statements for the year ended December 31, 2007. The =0D=0Aenclosed consolidated=
condensed financial statements should be read in =0D=0Aconjunction with=
the 2007 annual financial statements, which include a full =0D=0Adescription=
of the Group’s accounting policies. =0D=0A =0D=0AABOUT TANDBERG =0D=0ATANDBERG=
is the leading provider of telepresence, high-definition =0D=0Avideoconferencing=
and mobile video products and services. The Company has =0D=0Adual headquarters=
in New York and Oslo. TANDBERG designs, develops and =0D=0Amarkets systems=
and software for video, voice and data communication. The =0D=0ACompany=
provides sales, support and value-added services in more than 90 =0D=0Acountries=
worldwide. TANDBERG is publicly traded on the Oslo Stock Exchange =0D=0Aunder=
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 =0D=0Aother countries.=
All other trademarks are property of their respective =0D=0Aowners. =
=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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