Interim report January - June 2009

January - June 2009

* Net sales amounted to SEK 123.1 million (137.9).
* Software license and support revenue amounted to SEK 32.2
million (32.0).
* Improved gross margin at 77.2% (70.2).
* Net income before tax amounted to SEK 21.1 million (22.0).
* Total cash flow amounted to SEK -13.5 million (-9.3).
* Earnings per share amounted to SEK 0.04 (0.06).

Second quarter 2009

* Net sales amounted to SEK 62.6 million (73.2).
* Software license and support revenue amounted to SEK 15.3
million (18.4).
* Improved gross margin at 78.7% (71.3).
* Net income before tax amounted to SEK 11.1 million (15.8).
* Total cash flow amounted to SEK -34.5 million (13.2).
* Earnings per share amounted to SEK 0.02 (0.04).
Over the six-month period we report earnings and profitability that
are in line with our plans despite the global market downturn, which
has affected our sales mainly in North America and Asia Pacific.
Sales declined compared to the same period last year but improved
margins and operating expenses according to plan generated healthy
earnings and a continued strong financial position.

The underlying market demand for high quality media transport
solutions is strong. We also see that many larger network rollout
projects are being planned in our segments of the market around the
world but the decision processes are currently somewhat slower
causing delays.

During the second quarter we have continued to win new customers and
our existing customers continue to expand and upgrade the installed
base. The EMEA region has developed strongly during the quarter
partially offsetting the weak quarter in APAC and North America. Our
strong relationship with existing customers is a fundamental driver
and enabled us to win a new customer in Denmark in close cooperation
with BSD, one of our longstanding customers. We also established an
important footprint in southern Europe when a large broadband and
multimedia services provider selected Net Insight. As this new
customer is planning further expansion we also see further business
opportunities.

The Nimbra platform has proven to be the best solution for demanding
contribution networks for live coverage in many countries around the
world and this was once again confirmed when our solution was
selected for live sport transmissions of a European football league.

We have continued to increase our investment in sales and customer
support functions as part of our strategy to expand into new
geographical markets. In the Middle East another step was taken when
Net Insight was awarded an order for a significant TV production and
contribution network in the region.

Our sales in APAC have decreased compared to the same period last
year. Despite uncertain market conditions, we have won new customers
during the period and we see increasing opportunities for our
products in Asia. According to plan, our network of business partners
and resellers has been extended and we are now pursuing opportunities
in most major markets in the region.

In North America we have a strong position among broadcasters and
media network operators and our customers continue to upgrade and
invest in their Nimbra networks. During the second quarter, another
tier one telecom operator bought Net Insight equipment. This order
validates the need for flexible, quality-protecting transport
solutions among service providers in the U.S. and our continued
traction in this market. Our potential in North America remains
significant but the second quarter was weak.

Our Time Transfer function (for GPS-independent synchronization of
Single Frequency Networks) is an important market differentiator. We
also introduced new capabilities in the Nimbra platform during the
quarter, that are now in operation in customer networks. One new
product is the IP Trunk, which makes it possible for a network owner
to use Nimbra nodes to transport signals over a combination of
optical links and IP/Ethernet links. Normally the IP/Ethernet links
and the optical links are handled by different products and the
Nimbra solution has a unique advantage in being able to use both kind
of links at the same time.

Net Insight is well positioned for the future with a solid customer
base, strong offering and healthy financial position.

The full report is available for download (pdf) below.

Stockholm, 28 August 2009

Fredrik Tragardh
Chief Executive Officer

For more information, please contact:
Fredrik Tragardh, CEO Net Insight AB
Tel.: +46 (0) 8-685 04 00, email: fredrik.tragardh@netinsight.net

Net Insight AB
Net Insight AB (publ)Box 42093
126 14 Stockholm
Tel +46 (0) 8 685 04 00
www.netinsight.net
Corporate Reg. No. 556533-4397

This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.

SOURCE: Net Insight AB

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