Axis Communications, the global leader in network video [1], has published financial results for the first nine months of 2006 which confirm sales growth of 44% 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 period January to September 2006 rose by 32% to SEK (Swedish Krona) 841 million (R875 million), compared to SEK636 million (R661 million) for the same period in 2005.
Network video accounted for 89% of Axis's total sales and for the reported period net sales revenue in this core product set climbed 44% to SEK738 million (R767 million).
Operating profit also rose sharply, up 56% to SEK150 million (R156 million) for the first nine months of 2006, compared to the previous period in 2005. Gross margins were maintained at 54% over the reported period, and edged slightly higher for the third quarter to 55%. Axis also delivered a 70% rise in operating profit of SEK68 million (R71 million) for the third quarter of 2006, compared to same quarter in 2005.
Axis's EMEA region delivered strong sales growth reporting for the first nine months of 2006 at SEK389 million (R405 million), an increase of 38%. In addition, for the third quarter of 2006, the EMEA region delivered a record quarterly sales total, with EMEA net sales at SEK139 million (R145 million).
During the period January to September 2006, Axis strengthened its position as market leader in network video by recruiting more than 60 new employees, primarily in sales and support functions to make Axis even more responsive to market demands.
Major orders have included Stockholm Transport (SL) with an order for 1 200 network cameras for installation in the city's subway and commuter train stations. New product launches have included the AXIS 207MW, the world's smallest megapixel network camera.
Roy Alves, country manager for Axis Communications in Africa, commented: "These figures show the continued rapid growth of the network video market and our ability to keep ahead of the market in terms of product development and investment in people. The EMEA area remains our largest region for sales and I am pleased that we have reported another quarter of record sales for our region. We share this success with our partners in the Axis partner programme which has now grown to 5 426 members within EMEA."
[1] Axis Communications is the leading player in the network camera market with 47% 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 $54.7 million in 2004 and is set to grow by 50% per year over the next five years to reach a value of $360.6 million in 2009, in EMEA alone, according to the same report.
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Axis increases the value of network solutions. The company is an innovative market leader in network video and print servers. Axis's 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 Nordic list, Mid Cap, Information Technology. Axis operates globally with offices in 17 countries and in cooperation with distributors and system integrators in 70 countries. Markets outside Sweden account for more than 95% of sales. Information about Axis can be found at www.axis.com.
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