TANDBERG Reports Fourth Quarter 2009 Results

USA - English

• USA - English
• USA - English
• USA - English
• USA - English

SINGAPORE, Feb. 23 /PRNewswire-Asia/ -- TANDBERG(R)(OSLO: TAA.OL), today announced unaudited financial results for the fourth quarter ended December 31, 2009.

    Overview of 4Q09:

    -- Revenue of 270.0 MUSD (+20%) with record performance in all Theatres
    -- Operating profit of 60.0 MUSD (+14%)
    -- Cash balance of 306.6 MUSD and no debt
    -- No disruption to organization and partner base from pending Cisco
       transaction
    -- TANDBERG first company to demonstrate immersive three-screen
       telepresence interoperability with Cisco TelePresence as well as High
       Definition interoperability with Microsoft Office Communicator R2

FINANCIALS

Fourth quarter revenues were 270.0 MUSD compared with 225.5 MUSD in the same quarter last year, representing 20% year-over-year growth. Gross margin for the quarter was 65.3%, compared with 66.6% in the same quarter last year. Selling, General & Administrative (SG&A) expenses for 4Q09 totaled 101.4 MUSD, compared with 85.3 MUSD in 4Q08. Operating profit was 60.0 MUSD compared with 52.8 MUSD in the same quarter last year.

For the full year, revenue totaled 902.6 MUSD in 2009 compared with 808.8 MUSD in 2008, or 12% growth. Operating profit was 193.8 MUSD for 2009 and 176.7 MUSD for 2008.

The Company generated cash flow from operations of 75.1 MUSD in the quarter, which after a net cash outflow from investments of 14.2 MUSD, gave total cash inflow of 60.9 MUSD. As of December 31, the Company had a cash balance of 306.6 MUSD, no debt, and an equity ratio of 64.0%.

OPERATIONS

Reviewing fourth quarter results, Fredrik Halvorsen, Chief Executive Officer, stated, "Consistent execution in the field and year-end spending drove results for the fourth quarter. Importantly, the Company's continued investments in its employees, partners and product portfolio have positioned the Company to drive market expansion. Throughout 2009, TANDBERG continued to hire and train employees, and supported the growth of its partners through channel-specific training programs and by providing access to 29 state-of-the- art demonstration centers. Investments in total solution selling, along with JITC certification of industry-leading network products, resulted in strong network growth for the year. In addition, continuing its commitment to open standards and interoperability, TANDBERG demonstrated high-definition interoperability between standards-based video and telepresence systems and Microsoft Office Communicator R2. The Company was also the first to demonstrate immersive three-screen telepresence interoperability with Cisco TelePresence for expanded company-to-company collaboration.

In 2009, TANDBERG and its partners continued to outgrow the rest of the industry with no disruption from the pending Cisco transaction. TANDBERG employees are looking forward to joining the Cisco organization, bringing greater innovation to the market and accelerating the adoption of video and telepresence. The transaction is expected to close in the first half of calendar 2010."

MARKETS

In 4Q09, TANDBERG sold 19,289 endpoints compared with 17,584 endpoint units in the same quarter last year, a 10% year-on-year increase. Revenue from network products grew 39%, accounting for 25% of group revenues. The Company saw record performance from all three Theatres.

ASIA PACIFIC

Revenue in APAC during 4Q09 totaled 30.1 MUSD, compared with 25.6 MUSD in the same quarter last year.

North Asia had solid execution across China and Japan with the right team and leadership in place. Continued investment in the channel and the organization led to several defining wins in the region.

South Asia had a solid quarter with strong traction across the region in healthcare, finance and defense, including several key telepresence wins. The region also saw strong momentum in its partner base.

Build out of the team and partner base remains the priority for the APAC Theatre.

MARKET EXPANSION

TANDBERG has set out to build a global video community, where everyone has access to high quality video. In order to achieve this goal, systems must be interoperable for company-to-company communication. TANDBERG has consistently been the first to deliver the most advanced interoperability solutions to the market, and was the first to demonstrate immersive three-screen telepresence interoperability with Cisco TelePresence, as well as High Definition interoperability with Microsoft Office Communicator R2. (View video: http://www.tandberg.com/media/index.jsp?id=1518 )

TRANSACTION UPDATE ON CISCO ACQUISITION

TANDBERG has undertaken the required regulatory filings in all jurisdictions. As previously communicated, the transaction is anticipated to close during the first half of 2010. Payment to shareholders who have tendered is anticipated within 14 days after the satisfaction or waiver of all conditions to the offer, including applicable regulatory approvals.

ABOUT TANDBERG

TANDBERG 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 http://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.

    For further information contact:

     Nilesh Pritam
     TANDBERG
     Tel:    +65-6236-9231
     Mobile: +65-9369-5477
     Email:  [email protected]

SOURCE TANDBERG