26th July 2006
|
PRESS RELEASE |
| 26th July 2006
|
Axis Communications, the global leader in network video 1, has published financial results for the first six months of 2006 which confirm sales growth of 50% in its core market of network video products compared to the same period in 2005.
Axis has reported continued strong growth from the expanding network video
market. Across Axis Communications, net sales for the first six months of 2006
rose by 35% to SEK* (Swedish Krona)
540 M, compared to SEK 401 M for the same period in 2005. Net sales revenue in
the network video core product set climbed 50% to SEK 469 M.
Operating profit also rose sharply, up 68% to SEK 81 M for the first six months of 2006, compared to the previous period in 2005. Gross margins were maintained at 54.2% over the reported period.
Axis’s EMEA region delivered strong sales growth reporting 2006 half year sales at SEK 250 M, an increase of 35%. In addition, for the second quarter of 2006, the EMEA region delivered a record quarterly sales total, with EMEA net sales at SEK 134 M.
During the first half of 2006, Axis reaffirmed its position as global market leader in network video with an award from US technology analysts Frost and Sullivan for Market Penetration Leadership. The retail and transportation sectors delivered significant new sales contracts during the period. Highlights included the decision by Stockholms Lokaltrafik to install vandal-proof AXIS 225FD across the city’s subway and commuter rail stations. Axis cameras will also be installed in the city’s 2,500 buses.
Steve Gorski, managing director of Axis Communications UK Ltd commented:
“We are delighted to deliver another set of strong financial results. We
continue to reaffirm our brand leadership position in network video in a
fast-growing market. Within EMEA region, Axis’s market share is nearly four
times higher than our nearest competitor. Our commitment to innovation delivers
products such as the AXIS 212 PTZ, allowing pan/tilt/zoom functionality without
any moving parts. With 7,300 sales partners and over 300 Application Development
Partners, Axis continues to grow a partner base that wants to benefit from the
opportunities presented by network video.”
-ends-
* Currency conversion – British Pound equals 13.53 Swedish Krona (SEK),
prices correct as at 26th July 2006
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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 Communications 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 Stockholmsbörsen (XSSE: AXIS). Axis operates globally with offices in 16 countries an in cooperation with distributors, systems 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 UK and Ireland media enquiries, please contact:
Miles Clayton / Tim Rose/Simon Bennett, Agility PR Limited
Tel: 01438 310 139. Email: miles.clayton@agilitypr.co.uk / tim.rose@agilitypr.co.uk / simon.bennett@agilitypr.co.uk