Axis Communications, the global leader in network video, 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 M, compared to SEK 636 M for the same period in 2005. Network video accounted for 89% of Axis' total sales in the third quarter and for the reported period net sales revenue in this core product set climbed 44% to SEK 738 M.
Operating profit also rose sharply, up 56% to SEK 150 M for the first nine months of 2006, compared to the same period in 2005. Gross margins were maintained at 54.6% over the first nine months of 2006 and edged slightly higher for the third quarter of 2006 to 55%. Axis also delivered a 70% rise in operating profit of SEK 68 M 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 SEK 389 M, 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 SEK 139 M.
During the last year 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 mega-pixel network camera.
Steve Gorski, managing director for Axis Communications (UK) 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 the largest region for Axis sales, with UK sales representing a significant share of the overall regional total. I am also pleased that we have reported another quarter of record sales for our region. We share this success with our partners in the Axis partner program which has now grown to 5,426 members within EMEA."
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