TANDBERG Reports First Quarter 2007 Results.Revenue of 128.5 MUSD and Operating Profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of 29.2 MUSD in 1Q07 OSLO & NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- TANDBERG[R] (OSLO:TAA TAA - Track Average Amplitude .OL), today announced financial results for the first quarter ended March 31, 2007. Overview of 1Q07: * Revenue of 128.5 MUSD with volume of 12,866 units * Pre-tax profit of 29.5 MUSD * Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. reflect investments in strategic initiatives * Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses of 9.9 MUSD (after non-recurring $12mn cash settlement costs) * Business priorities for 2007 defined and communicated FINANCIALS First quarter revenues were at 128.5 MUSD compared with 82.7 MUSD in the same quarter last year. Gross margin for the quarter was 67.2%, compared with 69.1% in the same quarter last year. Selling, general & administrative (SG&A) expenses for 1Q07 totaled 51.6 MUSD, compared with 36.2 MUSD in the same quarter last year. Operating profit was 29.2 MUSD compared with 17.7 MUSD in the same quarter last year. Earnings per share (after tax) were 0.195 USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. in 1Q07 compared with 0.113 USD in the same quarter last year. The Company generated cash flow from operations of 9.9 MUSD in the quarter, inclusive of inclusive of prep. Taking into consideration or account; including. non-recurring settlement costs and the impact of taxes and changes in working capital amounting to 30.5 MUSD. Investments amounted to 9.1 MUSD and the net repurchase of shares amounted to 9.8 MUSD, resulting in a total cash outflow of 9.1 MUSD. As of March 31, the Company had a cash balance of 140.3 MUSD and an equity ratio of 61.9%. OPERATIONS Discussing first quarter results, Fredrik Halvorsen, Chief Executive Officer, stated, "The market drivers and solid execution enabling TANDBERG's growth in the second half of 2006 continued into 2007. In addition, the industry continued its rapid movement towards converged IP communications A general term for networks that use the IP protocol for voice (VoIP) and video traffic. See IP telephony. , with video becoming an integral part of a total communication solution. To capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. this momentum, TANDBERG will continue to step up investment in R&D, marketing, sales and operations. The Company also announced targeted strategic initiatives to drive a distinct position within the changing competitive landscape. While inventory levels increased, continued tight working capital management is evident from the balance sheet as DSO See CSO. reached a low of 60.2 days. MARKETS In 1Q07, TANDBERG sold 12,866 units compared with 8,124 units in the same quarter last year, a 58.4% increase. AMERICAS Revenue in the Americas Theatre during 1Q07 totaled 65.9 MUSD compared with 42.9 MUSD the same quarter last year, with continued strong sales performance and pipeline development. The Theatre experienced balanced growth and consistent execution across the Enterprise sector, especially in Canada and the Pacific Northwest. The Americas team experienced solid traction with the end-to-end solution (jargon) end-to-end solution - (E2ES) A term that suggests that the supplier of an application program or system will provide all the hardware and/or software components and resouces to meet the customer's requirement and no other supplier need be involved. Compare: turn-key solution. , which now includes Experia, TANDBERG's telepresence Meaning "long distance presence," it refers to videoconferencing applications that feel like a live meeting. Notable features are larger screens that may approach a virtual reality environment and sensors that keep at least one window focused on whomever is speaking at the moment. offering, and Movi, the Company's PC video solution which is being trialed with customers. New Executive Briefing Centers showcasing the solutions, and the TANDBERG 1700 MXP MXP In currencies, this is the abbreviation for the Mexican Peso. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. , the only High Definition executive desktop system on the market, have been very well received by customers. Enterprise channel development remains a key focus for the Americas, and a new VP of Channels was hired in the first quarter. EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. Revenue in EMEA during 1Q07 totaled 49.8 MUSD, compared with 31.7 MUSD in the same quarter last year. All regions performed well in the Theatre, particularly Northern Europe and the UK. The EMEA team is experiencing good traction in developing large accounts, and in leveraging a usage and adoption program to assist existing customers in driving business benefits. Strengthening the channel delivery model for total solution sales continues to be a key area of focus. A new head of Channels was appointed during the quarter to lead this initiative. ASIA Asia (ā`zhə), the world's largest continent, 17,139,000 sq mi (44,390,000 sq km), with about 3.3 billion people, nearly three fifths of the world's total population. PACIFIC Revenue in APAC APAC Australian Partnership for Advanced Computing APAC Agricultural Policy Analysis Center APAC Asia and Pacific APAC Asian Pacific American Coalition APAC Adapted Physical Activity Council (American Alliance for Health) during 1Q07 totaled 12.7 MUSD, compared with 8.1 MUSD in the same quarter last year. South Asia and Australia continued to show traction while North Asia is performing at expectation, but still below potential. In North Asia, predominantly in China and Japan, the focus remains on building the organization. The Company continues to invest in the region. STRATEGIC INITIATIVES IP communication is now being rapidly embraced, driving convergence of voice, video, and desktop collaboration. To establish a distinct position in this market, TANDBERG will provide a Natural Communication experience to customers, enabling customers to engage in every interaction as though it were an intimate, face-to-face discussion. To deliver on Natural Communication, the Company will develop technology and partner to offer a total solution for video-centric converged IP communication that focuses on seamless interoperability, utility-like reliability, scalability and ease of use. TANDBERG has laid out the following priorities for 2007: * Sustain strong operating fundamentals. The Company will uphold consistent behaviour in the field to maintain long-term/short-term balance. * Address areas of opportunity in the core business in 2007, expanding at the high-end with telepresence, driving our global accounts business, and growing business in Asia. * Invest aggressively to capture the converged IP communication opportunity. In the area of technology development and innovation, the Company will build video-centric solutions and provide visual communication for voice- and desktop-centric applications for converged IP communication. In marketing, TANDBERG will establish a distinct position in the IP communication market. And TANDBERG will build competence and capabilities in its service delivery model and among its channel partners, sales force and the broader organization. WEBCAST/CONFERENCE CALL DETAILS Today at 5:00 pm Central European Time Central European Time Noun the standard time adopted by Western European countries one hour ahead of Greenwich Mean Time, corresponding to British Summer Time Abbrev: (CET) or 11:00 am Eastern Time, Fredrik Halvorsen, Chief Executive Officer, will host a live webcast/conference call from Oslo, Norway. Additionally, a PowerPoint presentation will accompany the webcast/conference call. To access the webcast, please visit: https://tandbergevents.webex.com For those who prefer to dial-in, the conference call can be accessed at +1.617.614.3680 (international) or at +1.800.203.2706 (U.S. callers). The audience passcode for the call is TANDBERG. An online archive of the broadcast will be available within one business day.
OSLO and NEW YORK, April 19, 2007 <
The Board of Directors of TANDBERG asa <
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Jan Chr. Opsahl (sign.) <
Fredrik Halvorsen (sign.)
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Chief Executive Officer
For further information please contact Senior Vice President of Operations Terje Rogne, ph. + 47 98 28 98 02. Second quarter results will be released on July 11, 2007. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] FINANCIAL STATEMENTS - BASIS FOR PREPARATION The enclosed consolidated condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. financial statements have been prepared in accordance with IAS See iPlanet Application Server. 1. (computer) IAS - The first modern computer. It had main registers, processing circuits, information paths within the central processing unit, and used Von Neumann's fetch-execute cycle. 34, "Interim Financial Reporting". SIGNIFICANT ACCOUNTING POLICIES The 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, 2006. The enclosed consolidated condensed financial statements should be read in conjunction with the 2006 annual financial statements, which include a full description of the Group's accounting policies. ABOUT TANDBERG TANDBERG is a leading global provider of visual communication 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 Oslo Stock Exchange An exchange founded in 1819 and trading stocks, bonds, and stock options that is considered the options market of Norway. under the ticker TAA.OL. Please visit www.tandberg.com for more information. TANDBERG is a registered trademark or trademark in the U.S. and certain other countries. All other trademarks are property of their respective owners. |
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