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Transmode reports Q4 revenue of SEK 246.4m, up 23% yr/yr, net profit of SEK 34.2m
Announced Date: 2/23/2012 Published Date: 2/23/2012

Transmode of Stockholm, a global supplier of packet optical networking solutions, reported the following results for its fourth quarter and year ended December 31, 2011 in accordance with IFRS standards:

SEK MillionsQ4Q3%Q4%
 Dec 31 2011Sep 30 2011changeDec 31 2010change
      
Revenue246.4273.8-10.0 200.423.0
EMEA195.6217.3-10.0 161.421.2
Americas41.548.1-13.7 34.121.7
APAC9.38.410.7 4.989.8
      
Gross profit130.6134.2-2.7 100.629.8
% revenue53.049.0 50.2 
      
R&D expenditure33.126.624.4 27.520.4
% revenue13.49.7 13.7 
      
SG&A expenditure55.441.334.1 46.219.9
% revenue22.515.1 23.1 
      
Total operating expenditure85.864.832.4 74.814.7
% revenue34.823.7 37.3 
      
Net profit/loss34.253.5-36.1 19.773.6
% revenue13.919.5 9.8

Additional results and notes

  1. Sales for the full year were SEK 916.9 million, up 31% compared to SEK 699.3 million, gross margin was 50.5% versus 51.3%, and net profit for 2011 was SEK 116.3 million compared to SEK 81.4 million in 2010.

  2. Headcount was 228 at December 31, 2011 compared to 197 a year earlier, the increase due to hirings in product development, sales and supply departments leading to higher operating expenses.

  3. Cash and cash equivalents at the end of the year totalled SEK 293.8 million against SEK 206.0 million as of December 31, 2010.

  4. Transmode noted that given its year-on-year growth of 38% in local currencies, the company grew faster than the metro WDM market estimated at 30% by Infonetics.

Outlook

Transmode continues to see a need for investment in equipment that increases the capacity of optical fibre networks and said that at present there is nothing to suggest these needs are reducing. Also the company sees no effect on its business of economic difficulties, primarily in Europe.

Karl Thedéen, Transmode CEO, commented:

  • "For the full year, we have achieved our financial objectives with sales growth of 38% in local currencies and an adjusted operating margin of 18%".

  • "To the summary of 2011, we can also add the introduction of new innovative products for Ethernet transport and 100 Gbit/s per wavelength and new business in mobile backhaul and video distribution networks... we also secured a number of new accounts, conducted our IPO and relocated to new premises".