NDS Group reports drop in revenue, net profit
NDS Group said its revenue and net profit dropped for its first-quarter earnings that ended Sept. 30.
NDS’ revenue for the quarter was down 11 percent, to $182.2 million, from the $204.8 million in the same quarter a year ago. Revenue from the companies conditional access (CA) platform fell 19 percent, while the revenue from integration, development and support services increased by 4 percent.
NDS said one reason for the lower revenue was that its customers are re-using set-top boxes and smart cards when their subscribers leave, which means fewer sales in those areas.
"NDS' results this quarter reflect lower revenues from several large customers whose CA contracts have been renewed with certain volume discounts and new pricing to reflect different smart card change-over policies, as well as smart card recycling by certain customers,” said NDS CEO and Chairman Abe Peled. “This is in line with our guidance for fiscal 2009. In addition, our results have been impacted by unusually large currency fluctuations during the period. At this point, the worldwide economic uncertainty has not been reflected in our operational results or outlook; however, we remain cautious and are monitoring the field results closely.”
NDS’ net profit fell to $13.38 million, or 23 cents, which was down 71 percent from the $46.29 million, or 79 cents per share, from the same quarter a year ago.
News Corp., which is NDS Group’s parent company, is working on a deal with private equity group Permira Advisors to buy NDS and take the company private. If the deal goes through, News Corp. will own 49 percent of NDS, while Permira will have a 51 percent stake (story here).
Earlier this year, Cox Communications announced that it was working with NDS on an interactive set-top box interface that will eventually be used for the cable operator’s tru2way deployments (story here).
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