Net Insight publishes Interim Report for the period January - September 2007

INTERIM REPORT, JANUARY- SEPTEMBER 2007
Net Insight AB (publ), Corporate Reg. No. 556533-4397

January-September 2007

• Net sales increased by 96% to SEK 167.2 million (85.1)
• Operating earnings improved to SEK 14.7 million (-28.1)
• Net income improved to SEK 15.4 million (-27.2)
• Gross margin of 70.6% (70.3%).
• Service and software revenue increased by 146% to SEK 37.6 million (15.3).
• Operating cash flow significantly improved to SEK 9.7 million (-31.4).
• Earnings per share amounted to SEK 0.04 (-0.07)

Third quarter 2007

• Net sales increased by 67% to SEK 58.3 million (35.0)
• Operating earnings improved to SEK 6.5 million (-3.5)
• Net income improved to SEK 6.7 million (-3.3)
• Gross margin of 70.6% (70.8%)
• Service and software revenue increased by 174% to SEK 12.6 million (4.6)
• Earnings per share amounted to SEK 0.02 (-0.01)

The third quarter 2007 is our strongest so far and it is the fourth consecutive quarter with positive net income and the sixth consecutive quarter with increasing revenue. The strong underlying market demand for more network capacity and high quality media services continue to spur our business with increasing sales, improving our financial performance and a continued strong gross margin.

Our Nimbra platform has proven to be a very efficient and reliable solution for DTT (Digital Terrestrial TV) networks where we offer very strong, unique and quantifiable customer advantages. One good example of this is the new Time Transfer function for GPS-free time synchronization of communications and also other types of networks. Based on this strong offering for DTT networks we continue to win new customers and extension orders in this important segment.

The ongoing deployment of the Norwegian DTT network continued and on September 1, the customer went live with the first part of the network.

In addition to its unique features for DTT networks, the Nimbra platform is a true multi-service transport solution that opens up new business opportunities for network operators such as media contribution, interactive services, Mobile TV and Wimax (Worldwide Interoperability for Microwave Access). We now have a solid base of large customers, which have continued to place expansion orders for their networks throughout the quarter. The first generation backbone networks with Nimbra One switches are being upgraded to the high-capacity Nimbra 680 switch enabling our customers to offer more capacity and new services.

We also continue to broaden our customer base and have won new important customers during the quarter. In Europe we established ourselves in a new large market with a great potential for further business.

Our momentum in the US market has increased with growing sales and we added a new large media operator to our customer base. This again proves our strong position in the market and how well the Nimbra platform meets the ever increasing demands for broadcast and media transport.

In Asia, the activity level has steadily increased since we opened our Singapore office to support our market establishment in the region. As one very good example I want to mention that following extensive qualification testing and in tough competition with many other vendors, we won a major order in Korea in the third quarter. We see a growing interest and further opportunities for our voice, data and video transport solutions in the Asian region.

More: Full Report