Tandberg TV revenues top $78 million

TANDBERG Television (TAT) delivered revenues of $85.3m in 4Q06, up 9% compared to $78.5m in 4Q05. The gross margin was 57.3%, compared with 58.2% in the same quarter in 2005. Operating profit was $11.2m compared to $16.2m in the same quarter last year. Pre-tax profit was $14.5m (including $2.7m from the disposal of investments), compared to $18.0m in the same period in the previous year.

The cash balance at the end of the quarter was $125.2m and included net cash income from operations of $4.9m, compared with $21.7m in the same period in 2005. Total assets for the group were $568.8m, with an equity ratio of 84% at 31 December 2006. Total shares outstanding at the end of the quarter were 80,529,876.

On January 15th, 2007 TAT announced that it had reached agreement with ARRIS Inc, a US NASDAQ listed company to combine the two companies through an acquisition of all outstanding TANDBERG Television shares by ARRIS, subject to certain conditions as noted in the press release of January 15th, 2007. The offer price of NOK 96 consists of NOK 80 cash and NOK 16 in ARRIS shares, although ARRIS can increase the cash portion of the offer at its discretion. The TAT Board of Directors, and TAT Officers have unanimously recommended that TAT shareholders accept the offer.

TAT has recently received enquiries from shareholders and the market relating to the process leading up to the announced bid on January 15th, 2007. TAT has been advised by Deutsche Bank since 2002 in exploring strategic opportunities. Subsequent to the profit warning announced September 6th, 2006, TAT received a number of unsolicited approaches from industry participants, and instructed Deutsche Bank to approach other potentially interested parties. A number of parties conducted due diligence, culminating in the receipt of competitive bids, of which ARRIS’ bid delivered the highest value to TAT shareholders. Having reviewed the competitive landscape, increasing consolidation of both customers and competitors, and the loss of business opportunities to larger competitors, the Board concluded that a combination to create a larger scale operation, at the premium offered by ARRIS was in the best interests of shareholders.

It is expected that the offer document will be issued to TAT shareholders before the end of February, 2007.

Password must contain the following:

A lowercase letter

A capital (uppercase) letter

A number

Minimum 8 characters

;
SVGLogoHR_NOTAG-200

The Latest in Sports Video Production & Technology
in Your Inbox for FREE

Daily Email Newsletters Monday - Friday