TANDBERG Television (OSE:TAT) delivered revenues of MUSD 100.1 in 2Q06, up 40% compared to MUSD 71.2 in 2Q05. The gross margin was 58.2%, up from 55.1% in the same quarter in 2005. Operating profit was MUSD 18.9 compared to MUSD 12.2 in the same quarter last year. Pre-tax profit was MUSD 21.3, up from MUSD 12.2 in the same period in the previous year.
The cash balance at the end of the quarter was MUSD 95.7 and included net cash income from operations of MUSD 8.2 down from MUSD 13.0 in the same period in 2005. Net cash inflow in the quarter was MUSD 6.3. Total assets for the group were MUSD 538.5, with an equity ratio of 84% at 30 June 2006. Total shares outstanding at the end of the quarter were 80,529,876.
Market & Products
2Q06 saw TANDBERG Television maintain its position as a clear technology leader in the digital media infrastructure market.
During the quarter TANDBERG Television exhibited its integrated compression, on-demand and interactive solutions and delivered addresses at over 15 industry events in Asia, Europe and North America. These included Broadcast Asia in Singapore, The ANGA Cable show in Cologne and the National Association of Broadcasters (NAB) convention in Las Vegas. TANDBERG Television made a major impact at these important exhibitions with demonstrations of HD MPEG-4 compression, the launch of a new IP-based systems architecture and new on-demand and interactive applications for digital television systems. Our presence at these industry events under the newly integrated TANDBERG Television brand met with a very positive market reaction as the company continues to differentiate itself based on best in class technology and an increasingly broad scope of supply. At the Broadband World Forum in Hong Kong the International Engineering Consortium (IEC) presented TANDBERG Television with an InfoVision Award for its High Definition Intelligent Compression Engine (HD-ICE) for MPEG-4 AVC and SMPTE VC-1.
TANDBERG Television delivered continued momentum in HDTV, IPTV and digital television market with key contracts and deployments across all regions:
-- In the Americas a further order from a leading satellite digital television service provider valued at MUSD 5.9
-- In the EMEIA region, Estonia's Levira selected TANDBERG Television for MPEG-4 AVC digital terrestrial roll-out and we experienced a consumer-driven increase in HD encoding demand in the run-up to the FIFA 2006 World Cup
-- In APAC a deal with Japan's NTT to expands its IPTV rollout in Japan and the provision of HD MPEG-4 AVC encoding for CCTV to deliver to FIFA 2006 World Cup across China
TANDBERG Television made a number of executive appointments in the quarter, strengthening its existing team with proven industry leaders in the sales and systems architecture functions.
Outlook
The Board continues to be encouraged by a further quarter of top-line growth, solid gross margins and profitability. TANDBERG Television has continued to develop its strong technology portfolio and the Board supports the continued focus on successful integration and execution of the operational plan.
Basis of Preparation
The interim consolidated, financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and IFRIC interpretations issued and effective at the time of preparing these statements. The Board of Directors of TANDBERG Television ASA
Jan Chr. Opsahl, Chairman Eric Cooney, CEO
About TANDBERG Television
Whether it's advanced compression systems, on-demand or interactive television, TANDBERG Television (TAT.OL) delivers the technology and expertise that is moving digital video forward. The company's award-winning solutions are used by the world's leading network operators, broadcasters and content owners to deliver new viewer experiences and advertising opportunities. With a broad suite of open, standards-based products, TANDBERG Television offers the highest quality digital TV solutions including IPTV, HDTV, video-on-demand, advertising on-demand, and interactive TV applications to customers in the Americas, Asia Pacific, Europe, Middle East and Africa. For more information, please visit www.tandbergtv.com.