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Transmode Holding AB's Interim Report for January-September 2011

October 27, 2011 - London

Stockholm, Sweden - 27 October 2011 - Transmode, a global supplier of packet optical networking solutions, today announced the Interim Report for the period January to September 2011.

July - September 2011

  • Sales were SEK 273.8 (174.4) m, corresponding to an increase of 57.0% and by 64.5% adjusted for exchange rate fluctuations.
  • Operating profit was SEK 69.4 (30.5) m and operating margin was 25.3% (17.5%).
  • Net profit was SEK 53.5 (22.1) m.
  • Earnings per share after dilution were SEK 1.94 (0.88*).
  • Cash flow from operating activities was SEK 31.4 (60.1) m.
  • The new mobile backhaul contract with Virgin Media has resulted in significant deliveries already in the third quarter.

January - September 2011

  • Sales were SEK 670.5 (498.9) m, corresponding to an increase of 34.4% and by 42.1% adjusted for exchange rate fluctuations.
  • Operating profit was SEK 104.3 (81.8) m and operating margin was 15.6% (16.4%). Adjusted operating profit was SEK 123.0 (81.8) m and adjusted operating margin was 18.4% (16.4%), after adjustments for expenses of SEK 18.7 (-) m relating to Transmode's IPO on NASDAQ OMX Stockholm.
  • Net profit was SEK 82.1 (61.7) m.
  • Earnings per share after dilution were SEK 3.02 (2.45*).
  • Cash flow from operating activities was SEK 50.9 (84.3) m.

Earnings per share after dilution have been restated for 2010, see Interim Report.

"In the third quarter of the year, sales increased to SEK 274 m, or by 57% year-on-year. It is especially pleasing that all three regions until September achieved good year-on-year growth.  In EMEA, the increase was sharp thanks to the announced mobile backhaul contract with Virgin Media. In the Americas, we've now recovered the somewhat slower start to the year and sales for the first nine months are now up nearly 39% on the same point of the previous year. Overall, the company posted total operating profit of over SEK 69 m in the quarter, equating to an extraordinary operating margin of 25.3% - the highest in the company's history".
Karl Thedéen, Transmode's Chief Executive Officer.

The full Interim Report is attached and available via the link at the end of this press release.

Conference Call
Transmode Holding AB invites media, investors and analysts to a telephone conference (in English) at 09:00 AM CEST, October 27, 2011 where the Interim Report will be presented by Karl Thedéen, CEO, and Tomas Kihlstrand, CFO.

To access the telephone conference, please call UK +44 (0)20 3003 2666 alternatively, call the Swedish number +46 (0)8 505 204 24 and state that you are joining the "Transmode conference call" a few minutes before the scheduled start. The conference and presentation can also be followed live online, see Transmode's homepage:

The Interim Report along with historical quarterly data is also available on the Transmode website at

The information in this announcement is required to be disclosed by Transmode Holding AB under the Swedish Securities Markets Act (Sw. lagen om värdepappersmarknaden). This information was released for publication at 08:00 AM CEST on 27th October 2011.

For more information please contact:

Ola Elmeland
Vice President Marketing & Communications
Transmode Systems AB
Telephone: +46 8 506 882 71

About Transmode
Transmode is a global provider of packet-optical networking solutions that enable fixed line and mobile network operators to cost effectively address the capacity needs created by the rapid growth in video and data traffic. These solutions are important building blocks in next-generation high-speed optical networks that support services such as broadband backhaul, mobile data backhaul, video delivery services and cloud computing. Transmode's solutions are based on Wavelength Division Multiplexing (WDM) and packet optical transport technologies, which are designed to increase the capacity, flexibility and functionality of optical metro core and metro access networks. Transmode's Intelligent WDM (iWDM(TM)) approach gives key advantages to customers, such as ultra-low latency, low power consumption and innovative network design.

Transmode is headquartered in Stockholm, Sweden and is listed on the NASDAQ OMX Stockholm Exchange (TRMO). Since 2000 the company has installed more than 20,000 systems for over 300 fixed and mobile network operators, service providers, large enterprises and public institutions in over 40 countries across the globe.

For additional information about Transmode, please visit 

TRMO Interim Report 2011 Q3
Press release PDF

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.

Source: Transmode via Thomson Reuters ONE



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