PRESS RELEASE
8th March 2006

Axis’ 2005 financial results show soaring demand for its network video solutions

Axis Communications, the IP-Surveillance market leader 1, has recently announced a sharp rise in sales growth and profitability in 2005. Axis’ net sales in the financial year ending 31st December 2005 worldwide were up 29 per cent to SEK* 895 Million from SEK* 691 M in the previous year. Network-based video solutions sales worldwide (including network cameras and video servers) rose by 55 per cent for the full year. 

During the last quarter of 2005, video solutions showed a significant increase in demand, rising by 52 per cent as compared to the final quarter of 2004, with video solutions accounting for 85 per cent of all Axis’ sales in this period. 

Axis’ operating profit for 2005 also climbed by 156% year-on-year to SEK* 128 M (from SEK* 50 M in 2004), as it benefited from its market-leading product portfolio to take full advantage of strengthening growth in demand for network video solutions.

2005 saw the introduction and rapid acceptance of Axis’s seventh-generation ETRAX FS chip for more accurate processing of video images in its devices, and the last quarter of 2005 saw the launch of the Axis 225FD camera which has quickly collected industry accolades, including Detektor International’s ‘Best CCTV product’ award.

Steve Gorski, managing director, Axis Communications (UK) Limited, commented:

“2005 was an outstanding year for Axis, in the UK and across the world. We believe the market for network-based video solutions will see strong, sustained growth through 2006, and, as market leader, Axis is best-placed to fully capitalise on this demand. Our products, customer support and cutting-edge innovation will continue to keep us ahead in a fast-growing market.”

Notes to editors

1 Axis Communications is the leading player in the network camera market with 47 per cent market share in the EMEA region according to industry analyst house IMS Research in its latest market report entitled ‘The World Market for CCTV and Video Surveillance Equipment 2005 Edition’ published in October 2005. The network camera market was worth $547m in 2004 and is set to grow by 50 per cent per year over the next five years to reach a value of $360.6m in 2009, in EMEA alone, according to the same report.

About Axis
Axis increases the value of network solutions. The company is an innovative market leader in network video and print servers. Axis' products and solutions are focused on applications such as security surveillance, remote monitoring and document management. The products are based on in-house developed chip technology, which is also sold to third parties. 

Axis was founded in 1984 and is listed on the O-list (Attract 40) of Stockholmsbörsen (XSSE: AXIS). Axis operates globally with offices in 16 countries and in cooperation with distributors, system integrators and OEM partners in 70 countries. Markets outside Sweden account for more than 95% of sales. Information about Axis can be found at www.axis.com

For further information about Axis Communications in the UK and Ireland, please contact:
Steve Gorski, managing director, Axis Communications (UK) Limited
Tel: 0870 162 0047. Email: steve.gorski@axis.com

For all Axis Communications UK and Ireland media enquiries, please contact:
Miles Clayton / Tim Rose, Agility PR Limited
Tel: 01438 310 139. Email: miles.clayton@agilitypr.co.uk / tim.rose@agilitypr.co.uk