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Axis Communications Q2 2001 Report: Profitability on the Horizon

Delve into Axis Communications' Q2 2001 report, showcasing sales growth, EBIT highlights, and market trends. Discover the company's strategic segments, focus on network connectivity, and plans for profitability in the second half of 2001.

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Axis Communications Q2 2001 Report: Profitability on the Horizon

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  1. AXIS CommunicationsA world of intelligent networksSecond quarter 2001 Presented by Peter Ragnarsson

  2. Positioning Axis for profitability Axis will be profitable second half of 2001

  3. Highlights - Structure • Clear structure • Netch sold • Mobile Access Server sold • Focus on network connectivity

  4. Highlights - EBIT

  5. Highlights - Sales • Half year 2001 • Sales 353 Mkr (320) • Growth 10% • ThinServers: +17% • Netch: -45% (sold)

  6. Highlights - Sales • Axis grows in weak IT-market • Global company • Market positions • Product portfolio • Broad customer base • Distribution channels

  7. Highlights - EBIT • Reduced production costs • Productions problems solved • Positive impact 3-5 percentage units • Reduced overhead cost level • Costs down >100 M annually • Profitability second half of 2001

  8. Segments • Networked Office • Professional buyers • Organizations >50 employees • Office connectivity OEM • Industrial customers • Camera • IT • Security / surveillance • Technology • Mobile Internet

  9. Networked Office - sales q2 2001 • Total sales 73.4 Mkr (81.5) • Growth –9.9% • Strategic segment • Profitable base

  10. Office Connectivity OEM - sales q2 -01 • Total sales 34.9 Mkr (21.7) • Growth 60.8% • Continuous demand for built-in printserver solutions

  11. Camera - sales q2 2001 • Total sales 56.5 Mkr (44.4) • Growth 27.3% • Launch Axis 2420 • Collaboration with Milestone

  12. Camera • New order approx. $ 1 M • Mexican Election Authority (Instituto Federal Electoral) • Axis Network Cameras part of integrated solution for producing Mexican ID-cards

  13. Mobile Internet - sales q2 2001 • Strategic area • Wireless technologies (WLAN, Bluetooth, etc) • Platform • Technology and market uncertainties

  14. Highlights q2 2001 - EBIT • Towards profitability as planned • Axis (excl. structural costs) up 5.5 Mkr compared to q2-2000 • Heavy R&D investments • Mobile Internet 25 Mkr • R&D total 50 Mkr • Structural changes

  15. Highlights q2 2001 - EBIT • Items influencing EBIT • Temporary production problems solved in June, but unfavourable production allocation impacts also q2 • Administrative costs related to restructuring activities • Lay-off program -20 Mkr

  16. EBIT analysis q2-2001 (proforma q2-2000)

  17. EBIT by quarter (proforma 2000) • R&D overall • 50 Mkr in q2-2001 • New structure • 20 Mkr restructuring costs in q2-2001 • Restructuring costs in q4 and q1 relates to Netch • Towards profitability as planned

  18. ThinServer products - EBIT q1 2001 • Profitability in focus • Action program reduces cost by 15% • EBIT level improved significantly • Action program impacts profitability from q3 and onwards

  19. Mobile Internet products - EBIT q2 -01 • Intensive R&D • Total investment in q2-2001 25 Mkr (19) • Investment level reduced during 2001

  20. Change in liquid funds – q2 2001

  21. Balance sheet - assets

  22. Balance sheet - liabilities & equity

  23. Market trends 2001 • Generally weak market conditions expected for the rest of year 2001 • Market and technology delays in wireless area

  24. Axis 2001 • Focus on network connectivity • Global presence • Industry insider • R&D portfolio • Established channels to markets • Track record

  25. Outlook 2001 • Profitable second half of year 2001

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