Net Insight Provides Earnings Guidance for the Second Quarter 2017; Provides Sales Guidance for the Second Half-Year 2017
July 04, 2017 at 02:30 am EDT
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Net Insight provided earnings guidance for the second quarter 2017. The company is reporting that net sales for the second quarter 2017 were down by some 30% on the corresponding quarter of the previous year. This means that second-quarter net sales are expected at SEK 90 95 million, operating loss in the SEK 25 - 30 million interval, and negative cash flow of SEK 25 - 28 million. Some of the earnings downturn is due to the live OTT initiative. The sales downturn for the second quarter primarily depends on the: the global media market is in fundamental transformation, with customer needs and consumer behavior being the drivers of change. This means sales processes involve more parties, take longer and are more complex than previously. In the second quarter, some customers were hesitant, needing more time to adapt their business to the new media landscape; in 2016, sales were positively impacted by several global events including the Brazil Summer Olympics and the UEFA Euros in France. Many customers decided to upgrade their systems at this time. The outcome was that 2016 was Net Insight's strongest-ever year, with sales of SEK 504 million and operating profit of SEK 52 million; net Insight executed strategic restructuring in 2016 designed to create a more customer-centered organization. Instead of product segments, Net Insight created a portfolio with a complete offering. Its organization was also altered, with new competence hired, which is taking time to have its full impact. A new Head of Sales is now in place in North America, and the change process is now largely complete. The expected outcome is a more homogeneous, effective and productive organization.
The company simultaneously reported that estimated sales for the second half-year 2017 will be consistent with the corresponding period of 2016.
Net Insight AB is a Sweden-based company engaged in the provision of communications equipment. The Company develops, commercializes and sells routing solutions for the transfer of video, voice and data under the brand name Nimbra. Its activities are divided into four business areas: Broadcast and Media Networks (BMN), offering network solutions for the production and contribution of media services; Digital Terrestrial Television (DTT), providing the distribution of television (TV) programs from a central location (headend) to transmission towers within region; Cable TV & Internet Protocol Television (CATV/IPTV), which distributes TV, video, broadband and telephony to households; and Over the Top (OTT), offering video over the Internet solutions. Its customers include broadcasters, media companies, telecom and satellite operators, as well as cable TV/IPTV providers. Net Insight AB operates in Europe, the Middle East and Africa (EMEA), Asia and Pacific (APAC) and the Americas.