Transmode Holding AB: Interim Report April - June 2012

April - June 2012 * Sales were SEK 270.3 (215.6) m, corresponding to an increase of 25.3% and 22.4% adjusted for exchange rate fluctuations. * Operating profit was SEK 44.0 (26.7) m and operating margin was 16.3% (12.4%). Adjusted operating profit for the second quarter 2011 was SEK 37.1 m and adjusted operating margin was 17.2%. The adjustment was for expenses of SEK 10.4 m relating to Transmode's IPO on NASDAQ OMX Stockholm. * Net profit was SEK 34.8 (22.2) m for the quarter. * Earnings per share after dilution were SEK 1.25 (0.81). * Cash flow from operating activities was SEK 0.4 (16.9) m. * New five-year frame agreement signed with XO Communications of the US. * Transmode launched its network management product suite Enlighten(TM) and support for network synchronization, Intelligent Sync (iSync). January-June 2012 * Sales were SEK 505.5 (396.7) m, corresponding to an increase of 27.4% and 25.3% adjusted for exchange rate fluctuations. * Operating profit was SEK 83.5 (34.9) m and operating margin was 16.5% (8.8%). Adjusted operating profit for the first half-year 2011 was SEK 53.6 m and adjusted operating margin was 13.5%. The adjustment was for expenses of SEK 18.7 m relating to Transmode's IPO on NASDAQ OMX Stockholm. * Net profit was SEK 66.0 (28.6) m for the period. * Earnings per share after dilution were SEK 2.38 (1.06). * Cash flow from operating activities was SEK 31.3 (19.5) m. CEO's Statement: Transmode's Profitable Growth Continues "Sales increased to SEK 270.3 m in the second quarter of the year, up 25.3% on the corresponding quarter of the previous year. I'm pleased that again in this quarter, we grew in all three regions. Overall, the company posted an operating profit of SEK 44.0 m in the quarter, corresponding to an operating margin of 16.3%. This healthy operating profit was driven by revenue gains, a gross margin of 49.0% and continued operational efficiency. The most important contract in the quarter was the five-year frame agreement we signed with XO Communications of the US for deliveries of WDM equipment to their nationwide network. Furthermore, Transmode has launched its Enlighten(TM) management suite, which makes it easier for our customers to manage and plan their optical networks. We also launched our innovative offering for network synchronization under the "iSync" banner. To summarize, we are pleased with a very positive first half-year that demonstrates that our growth strategy with its focus on geographical expansion, innovative products and operational efficiency, is successful. Therefore, we are continuing to invest for profitable growth. " Karl Thedéen, CEO, Transmode The Interim Report is attached and available via the link at the end of this press release. Invitation to press and analysts conference Transmode Holding AB will hold a conference call (in English) for the media, investors and analysts on 24 July at 09:00 CEST where CEO Karl Thedéen, and CFO Tomas Kihlstrand, will present and comment on Transmode's Interim Report. Participate in the conference call on +44 (0) 20 3003 2666, or the Swedish number +46 (0)20 089 6377, stating "Transmode conference call" a few minutes before the scheduled start. The conference and presentation will also be streamed live on Transmode's website: http://www.transmode.com/en/interim- reports/interim-reports. The Interim Report along with historical quarterly data is also available on the Transmode website at www.transmode.com. The information in this announcement is required to be disclosed by Transmode Holding AB under the Swedish Securities Markets Act (Sw. lagen om värdepappersmarknaden). This information was released for publication at 08:00 AM CEST on 24 July,2012. For more information please contact: Ola Elmeland Vice President Marketing & Communications Transmode Systems AB Telephone: +46 8 506 882 71 Email: ola.elmeland@transmode.com About Transmode Transmode is a global provider of packet-optical networking solutions that enable fixed line and mobile network operators to cost effectively address the capacity needs created by the rapid growth in video and data traffic. These solutions are important building blocks in next-generation high-speed optical networks that support services such as broadband backhaul, mobile data backhaul, video delivery services and cloud computing. Transmode's solutions are based on Wavelength Division Multiplexing (WDM) and packet optical transport technologies, which are designed to increase the capacity, flexibility and functionality of optical metro core and metro access networks. Transmode's Intelligent WDM (iWDM(TM)) approach gives key advantages to customers, such as ultra-low latency, low power consumption and innovative network design. Transmode is headquartered in Stockholm, Sweden and is listed on the NASDAQ OMX Stockholm Exchange (TRMO). Since 2000 the company has installed more than 30,000 systems for over 400 fixed and mobile network operators, service providers, large enterprises and public institutions in over 40 countries across the globe. For additional information about Transmode, please visit www.transmode.com. Press release PDF: http://hugin.info/134733/R/1628740/521602.pdf TRMO Interim Report Q2 2012: http://hugin.info/134733/R/1628740/521603.pdf This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Transmode via Thomson Reuters ONE [HUG#1628740]