15 Oktober 2009
TANDBERG Reports Third Quarter 2009 Results
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=0D=0A=0D=0ATANDBERG Reports Third Quarter 2009 Results =0D=0A=0D=0ARevenue=
of 234.7 MUSD and Operating Profit of 50.0 MUSD in 3Q09=0D=0A=0D=0AOSLO=
and NEW YORK, October 15, 2009 - TANDBERG=AE (OSLO: TAA.OL), today announced=
financial results for the third quarter ended September 30, 2009. =0D=0A=
=0D=0AOverview of 3Q09:=0D=0A*Revenue of 234.7 MUSD (+11.6%)=0D=0A*Operating=
profit of 50.0 MUSD (+10.2%)=0D=0A*Cash flow from operations of 72.0 MUSD=
(+35%)=0D=0A*Continued telepresence innovation=0D=0A*Recommended voluntary=
cash offer from Cisco=0D=0A=0D=0AFINANCIALS=0D=0AThird 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. =0D=0A=
=0D=0AThe 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%. =0D=0A=0D=0AFINANCIAL TABLES=
=0D=0AClick for financial tables [http://www.tandberg.com/collateral/ir/qr_2009_q3.pdf?elq=3Dd07deafcea034badab5ea2704bfbfc53].=
=0D=0A=0D=0AOPERATIONS=0D=0AReviewing 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.=0D=0A=0D=0ATo 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.”=0D=0A=
=0D=0AMARKETS=0D=0AIn 3Q09, TANDBERG sold 18,260 endpoints compared with=
17,487 endpoint units in the same quarter last year, a 4% year-on-year=
increase. Revenue from network products grew 34%, and service revenues=
grew 18% year-on-year.=0D=0A=0D=0AAMERICAS =0D=0ARevenue in the Americas=
during 3Q09 totaled 129.7 MUSD compared with 109.1 MUSD the same quarter=
last year. =0D=0A=0D=0APublic Sector outperformed in the quarter, driven=
by the strongest team in the industry. In particular, Federal performance=
was very strong, and the State and Local business in the East also showed=
good growth. The Company continued to invest in the Public Sector, aggressively=
expanding the team during the quarter. Mixed performance and execution=
issues in State and Local West were also addressed in the quarter. =0D=0A=
=0D=0AThe Commercial business continued to experience prolonged sales cycles,=
but the team executed well in all areas and gained momentum in network=
sales. =0D=0A=0D=0APartners and customers reacted positively to the Cisco=
offer.=0D=0A=0D=0AEMEA=0D=0ARevenue in EMEA during 3Q09 totaled 78.1 MUSD,=
compared with 77.4 MUSD in the same quarter last year. Focus on the Public=
Sector paid off in the quarter, in particular in the UK. Good performance=
was also reported in the Netherlands, Germany, France and Sweden. Norway,=
Russia and Central Eastern Europe experienced a challenging quarter.=0D=0A=
=0D=0AThe EMEA team exercised good cost control and performance management.=
Strong services sales continued across all markets. The Theatre also saw=
record high participation at the Partner Summit and a positive reaction=
from partners and customers around the Cisco offer.=0D=0A=0D=0AThe EMEA=
team will focus on establishing a strong position in the mid-market, and=
on executing on the Public Sector and Channels initiative.=0D=0A=0D=0AASIA=
PACIFIC =0D=0ARevenue in APAC during 3Q09 totaled 26.9 MUSD, compared with=
23.8 MUSD in the same quarter last year. =0D=0A=0D=0AThe North Asia team=
showed good growth in China. The South Asia team experienced good traction=
for telepresence products throughout the region, as well as solid wins=
in the Judicial and Defense segments in South East Asia. The Company continued=
to invest in the organization and in channels.=0D=0A=0D=0ARECOMMENDED VOLUNTARY=
CASH OFFER BY CISCO=0D=0AOn 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.=
=0D=0A=0D=0AFor clarification, the Board wants to emphasize that the management=
team will continue in their existing functions, and with their existing=
total compensation packages. =0D=0A=0D=0AThe offer period started on Friday=
9 October 2009 and ends 9 November 2009 at 17:30 CET. The offer document=
has been sent to all registered shareholders of TANDBERG as of 2 October=
2009 and is available on www.carnegie.no [http://www.carnegie.no/]. =0D=0A=
=0D=0AThe acquisition is expected to close during the first half of calendar=
year 2010, subject to customary closing conditions, including regulatory=
review in the United States and elsewhere.=0D=0A=0D=0AOSLO and NEW YORK,=
October 15, 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=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: https://tandbergevents.webex.com=
[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=0AFourth quarter results will=
be presented on February 3, 2010 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=0AClick for full press release plus financial tables [http://www.tandberg.com/collateral/ir/qr_2009_q3.pdf?elq=3Dd07deafcea034badab5ea2704bfbfc53].=
=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=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=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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