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Sweden's Net Insight Q3 sales drop 29%, posts net loss

By Reuters News


Overview

  • Sweden live media transport firm's Q3 net sales fell 29% yr/yr to SEK 103.9 mln

  • Company posted Q3 operating loss and net loss, citing continued financial weakness

  • Gross margin improved sequentially, driven by higher share of software revenue


Outlook

  • Net Insight says focus remains on converting commercial opportunities into revenue and recurring business

  • Company sees continued commercial progress in both Media and Time Synchronization segments

  • Net Insight highlights expansion in Media and Time Synchronization with new product launches and customers


Result Drivers

  • SOFTWARE REVENUE - Co said improved gross margin was driven by higher share of software revenue

  • MEDIA OFFERING EXPANSION - Co continued expansion of Media offering with new product launches, including Nimbra 1020G

  • TIME SYNCHRONIZATION CUSTOMERS - Co expanded Time Synchronization business with two new customers in defense and data center segments


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Miss

SEK 103.90 mln

SEK 117.80 mln (1 Analyst)

Q3 Loss Per Share

SEK 0.02

Q3 Net Loss

SEK 8 mln

Q3 EBIT

-SEK 5.10 mln

Q3 EBIT Margin

-4.90%


Analyst Coverage

  • Wall Street's median 12-month price target for Net Insight AB is SEK3.00, about 26.8% above its October 28 closing price of SEK2.37

  • The stock recently traded at 4,316 times the next 12-month earnings vs. a P/E of 29 three months ago


Reuters Recommended Reads

  • Oct 27 - Sweden's Assa Abloy slightly beats Q3 sales estimates on strength in Americas and EMEIA divisions

  • Oct 28 - Sweden's Acast Q3 sales rise 25% on US growth

  • Oct 27 - Sweden's Storytel Q3 sales rise 16% as subscribers grow


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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