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Annual Repor t 2000
TANDBERGTelevision
Europe, Middle East, AfricaAdvent UKAntena Servizi ItalyAntenna Hungaria HungaryAPTN UKArab Radio & TV JordanArcade NetherlandsARD GermanyATV TurkeyAVS GermanyBBC UKBBC Prime UKBezeq IsraelBotswana Television BotswanaBT UKBSkyB UKCable & Wireless UKCanal + EuropeCanal Digital ScandinaviaCanal France International FranceCasema NetherlandsCasTel NetherlandsChannel 5 UKCML UKCyprus Telecom CyprusDanmark Radio DenmarkDBS IsraelDetecon GermanyDeutsche Telekom GermanyDeutsche Welle GermanyDigita FinlandDigital Space IrelandElettronica Industriale ItalyEBU SwitzerlandEsken TV TurkeyEuronews FranceEutelsat FranceFlextech UKFrance 3 FranceFrance Telecom FranceGilat IsraelGlobecast Northern Europe UKHRT CroatiaIHA TurkeyIrdeto NetherlandsIRN UKKinnevik / MTG group SwedenKPN NetherlandsLBC LebanonLink Research UKMadritel SpaniaMatav IsraelMediakabel NetherlandsMesaj TV TurkeyMIR Teleport RussiaMNET South AfricaMTV Networks Europe UKMultichoice South AfricaNDS UKNEC Europe UKNilesat EgyptNTL UKNTV RussiaOpen Interactive UKOrbit Saudi ArabiaORF AustriaORT RussiaPace UKPagi Poland
Polsat PolandRadio France International FranceRAI ItalyREN-TV RussiaRetevision SpainReuters Television UKRTE IrelandRTL GermanyRTL2 GermanyRTV SloveniaSAT-1 GermanySatlink IsraelSES LuxembourgShowtime UKSiemens GermanySTG SwitzerlandStjarn-TV SwedenStofa DenmarkStream ItalySwisscom SwitzerlandSyned GreeceTelecom Danmark DenmarkTeleDanmark Cable TV DenmarkTelefonica SpainTelemedia South AfricaTele + ItalyTelespazio ItalyTeracom SwedenTDF FranceTeleGreenland GreenlandTelenor Satellite Services EuropeTelewest UKTelewizja Polska PolandTelia Infomedia TV SwedenTelia Networks SwedenThomcast FranceThomson Broadcast Systems FranceTNT RussiaTV2 NorwayTV5 FranceTV-Cabo PortugalTVN PolandUPC NetherlandsVideopole FranceWahlberg & Selin SwedenWTN UKYLE FinlandZDF Germany
Asia PacificABC AustraliaABS ChinaAsia Television Hong KongAustar AustraliaBCL New ZealandBeijing Telecom ChinaCCTV ChinaChannel 7 AustraliaChannel 9 AustraliaChannel 11 ThailandChina Telecom ChinaCNBC Asia Hong KongCTM MacauDatastream Technology BruneiDoordarshan IndiaEssel Shyam IndiaFoxTel AustraliaKBS KoreaKDD Japan
NEC JapanNetwork Ten AustraliaOptus Comms AustraliaOptus Vision AustraliaPTT IndonesiaPTV TaiwanRTB BruneiSARFT/INC ChinaSatelindo IndonesiaSBS AustraliaShaanxi Province ChinaShanghai Cable Network ChinaShanghai Telecom ChinaShin Satellite ThailandSingapore Technology SingaporeSKY AustraliaSky NZ New ZealandSky PerfecTV JapanStar TV Hong KongSumitomo JapanSunTV IndiaTelecom Malaysia MalaysiaTeleport SingaporeTelstra AustraliaTV NZ New ZealandTV Today IndiaTVB Hong KongTzu Chi Television TaiwanUBC ThailandUCOM ThailandVietnam TV Vietnam
The AmericasAscent Network Services USAAzteca Americas USABellSouth USACanadian Broadcasting Corporation CanadaCaracol ColumbiaCisco Systems USAEchostar USAFox USAHarmonic USAHeartland Video USAIBM USAIDB USAInnova MexicoIntelsat USAMRC USANBC USANetSat BrazilNTU USAPanamsat USAPramer ArgentinaRCN ColumbiaSER-SAT ArgentinaSinclair Broadcasting USASky LA USATelevisa MexicoTribune Broadcasting USATurner Broadcasting USATV Bandeirantes BrazilTV Globo BrazilUSA Broadcasting USAVyvx USAWarner Brothers USAWolf Coach USAZenith USA
Major Customers
This is TANDBERG Television 1
Key Financial Figures 2
Foreword by the President and Chief Executive Officer 3
Report of the Board of Directors 4 - 6
Profit and Loss Account 7
Balance Sheet 8
Cash Flow Analysis 9
Notes to the Financial Statements 10 - 16
Auditor’s Statement 17
Shares and Shareholders 19 - 20
Business Overview - Building Core Business 21 - 30
Looking Forward 31 - 32
Contents
Annual Report 20001
The company’s solutions enable the delivery of video, audio
and data across various networks including cable, satellite,
terrestrial, IP and telecom. TANDBERG Television is a recognised
innovator in digital broadcasting and its broad technology
offering is complimented with the highest quality systems
integration and customer service.
Headquartered in Norway, TANDBERG Television employs 615
highly skilled and knowledgeable people, and has sales and
24-hour support and monitoring operations in Asia, Australia,
Europe and the USA. The company’s customers include major
broadcasters, network operators and convergence and media
players around the world.
TANDBERG Television is one of the industry leaders in the provision
of open infrastructure solutions to the global broadcast industry.
This is TANDBERG Television
Annual Report 2000 2
Key Financial Figures
NOK 1,000 2000 1999 1998 1997
Operating revenue 1,187,574 483,503 274,616 233,862
Operating profit (90,576) 8,383 57,809 53,647
Operating margin -8% 2% 21% 23%
Profit before tax (68,374) 39,084 80,621 59,136
Net profit for the year (73,471) 25,003 57,835 40,486
Earnings per share, fully diluted (NOK) n.a. 0.66 1.82 1.44
Total assets 1,024,047 2,828,305 670,755 317,928
Cash and bank 343,345 374,401 590,236 255,251
Total equity 710,887 2,557,021 587,761 253,955
Equity ratio 69% 90% 88% 80%
Shares outstanding, year end 54,727,248 54,527,248 32,198,543 29,125,796
Average fully diluted number of shares 55,240,053 38,027,993 31,704,724 28,054,730
• The 2000 figures exclude extraordinary items relating to the balance sheet revaluations totalling NOKm 1,794
• Operating margin = Operating profit / Revenue
• Earnings per share = Net income / Average number of fully diluted outstanding shares
• Equity ratio = Equity / Total assets
• Average fully diluted number of shares is the average outstanding shares plus the average outstanding options calculated on a daily basis
Annual Report 20003
To our shareholders, customers, partnersand employees
The first year of the 21st century saw TANDBERG Television make
significant moves to build on our core digital broadcasting
business and to establish us as a key player in enabling digital
media delivery. Throughout every part of our business we
increased our focus on adding value, to create an organisation
that delivers to all our stakeholders.
It would be fair to say that 2000 was a year of two halves. In the
first half of the year TANDBERG Television experienced a difficult
time as the company came to grips with the challenges of
merging the acquired NDS Digital Broadcasting Business with the
existing company. The opportunities that the merger offered for
market leadership were clear, but global harmony was by no
means easy.
The second half of 2000 saw considerable achievements
across the company:
Financial: we started to deliver on our financial promise,
reporting positive second half performances that bucked the
trends of our competitors, and of the technology markets in
general.
Management: we are building a world-class management team
with the skills and vision to lead us to the top. New
appointments during 2000 included a new Chief Operating
Officer, Chief Technology Officer and myself as President and
Chief Executive Officer. We appointed senior regional managers
and put key people in critical positions.
Operations: we introduced a quality programme ‘Operation
Excellence’ designed to create a truly world-class organisation,
meeting the highest quality standards and decreasing our time to
market.
Technology: we focused on turning our R&D skills into the
solutions that our customers require. We built on core business
areas such as digital terrestrial television, winning significant
contracts around the world. New markets, such as IP and
broadband, were also targeted with solutions that leverage our
core digital broadcasting skills.
We continued to create business value add and to deliver to
our stakeholders:
Customers: we retained all of our major customers and added
new ones to our portfolio through major contracts wins, such as
in Australia. We achieved closer relationships with our customers
and increased our customer service operations, expanding our
business in areas such as systems integration.
Partners: we increased our spread of commercial and technology
partners to ensure that our solutions are open, interoperable and
available in every corner of the globe.
People: respect lies at the heart of a global employee culture
we are creating. It wasn’t always easy to work for TANDBERG
Television during 2000, but by the end of the year I believe we
had communicated to our people how serious we are about our
business and how much we respect them.
Shareholders: despite a global market depression for technology
stock, our stock performed well during the latter part of 2000
and we are optimistic about our future performance.
Adding Value will continue to be our focal point during 2001.
We operate in a truly exciting market. Digital content is having a
serious social and commercial impact on our lives. The
opportunity to take a piece of information; be it video, audio or
data; and then digitally deliver it to a growing magnitude of
consumer and business devices is creating entirely new
industries. I am proud that the efforts we made during 2000 have
enabled us to end the year with a positive momentum across our
company and with a solid base to move ahead to achieve our aim
of becoming the world’s leading provider of professional delivery
solutions to the media industry.
As we embark on a seriously exciting year for TANDBERG
Television, I want to take a moment to thank our people, our
shareholders, our customers and our partners for your ongoing
commitment and faith in us.
Jørgen Bredesen, President and Chief Executive Officer
Annual Report 2000 4
Main developments and future outlookMarket position
In the first half of the year, the general activity within TANDBERG
Television’s market was slow. Several of the company’s potential
clients remained cautious with their capital expenditure as a
result of the millennium change and related technical problems
due to the date change into the year 2000. However, in the late
summer, the market experienced an increase in momentum, and
the slow first half of the year was contrasted by a second half
with positive market development across geographic regions and
market segments. TANDBERG Television not only capitalised on
the general increase, but also gained ground relative to its
competitors, especially within contribution and distribution
(both fixed & mobile) of digital signals and within the terrestrial
broadcasting of digital television. Within the roll-out of
contribution and distribution of digital television, TANDBERG
Television won deals around the globe, and delivered key
contracts in Canada, Argentina, the US and the UK. The digital
terrestrial broadcasting (traditional VHF/UHF broadcasting)
segment experienced an upswing as Australia, Finland and Spain
initiated investments during the year. Within this segment,
TANDBERG Television has established itself as the leading
infrastructure provider, winning a large majority of the available
contracts, with proven, fully operational systems in place. The
company has positioned itself as one of the main players within
its industry, and has the right technology and sales reach to
benefit from this position in the coming years as the global build
out of digital broadcasting continues.
Product development
TANDBERG Television has a large part of its internal resources
within research and development, which gives the company the
basis for maintaining its technological lead. During the year there
was continued work on improving and upgrading the current
product portfolio, including the launch of the evolution 5000
system, which is an integrated encoding, multiplexing,
modulation and control solution. Adaptation of the evolution
5000 to all major market segments with a range of scrambling
and regional specification support has been an important focus
area during the year 2000.
Other important product launches were a new generation of
decoders, advancements within transmission and control of
digital TV over ATM (telecom) networks, and a new control
system for regional head-ends. Introducing new hardware and
software platforms together with the cost-optimisation and
launch of next generation products has been highly prioritised
on the product development agenda, and is important in
maintaining existing profitability levels.
In addition to expanding existing products and systems, the
company also moved into new market segments through the
introduction of two important products at the IBC exhibition in
Amsterdam. Here the company demonstrated its new
advancements within full-quality broadcasting over IP networks
through the new IP multistreamer, and also its new Digital
Electronic News Gathering (wireless digital TV transmission)
systems, specially suited for the mobile contribution market.
During the year 2000, TANDBERG Television developed its product offering, increased its
geographical domain and targeted new market opportunities. On the whole, the company
leveraged its position as the market’s technological heavyweight, propelling itself into the
new millennium as one of the leaders within its industry.
Report of the Board of Directors
Future outlook
A number of significant measures were taken during the year
to consolidate and restructure the company. In May, Jørgen
Bredesen (44) was appointed President and CEO. With his
successful background from electronics giants Motorola and
Philips, where he held several senior positions, he has the right
combination of strategic and operational experience. He
proceeded to make several key recruitments, and a new top
management team was put in place. A strategic process of
exploring new market opportunities and potential new business
models was initiated, and is well underway in building an
increasingly positive outlook for the company. TANDBERG
Television ended the year 2000 with a fourth quarter showing
good revenue growth and a healthy profit. The strategic logic
behind the recent restructuring of the NDS Digital Broadcasting
Business (DBB), and the combined companies’ geographic reach
and product breadth, gives TANDBERG Television the necessary
base to move the company into new business areas and to take
advantage of new business models.
The Board is therefore optimistic in its predictions for the year
2001 and beyond, and believes that the potential behind
TANDBERG Television’s position as one of the leaders within its
industry gives the company a solid basis for creating future value
for its customers, employees, partners and shareholders.
Discussion of the annual accounts and effecting factors
Income statement, Balance Sheet and Cash Flow 1
2000 was a turnaround year for TANDBERG Television, on the
back of the acquisition of NDS’ Digital Broadcasting Business
(DBB) in late 1999 and the following integration of this business
into the company. In the first half of 2000, revenue and
profitability within DBB was down, incurring significant losses to
the group. As a direct result of this decline, a re-estimation of the
future benefit of DBB’s assets was made. The re-estimation
demonstrated a major permanent impairment in the value of the
assets acquired, and the Board took steps to write off the
intangible assets resulting from the acquisition in full. In
addition, provisions to restructure the DBB operation were made.
The renewed positive outlook for the group is built upon the
assets from the non-DBB part of the company and on the new
opportunities that have emerged over the past six months
through a strategic process of identifying potential new market
to channel the DBB resources into.
TANDBERG Television’s operating revenues in 2000 totalled
NOKm 1,188, while the loss before tax totalled NOKm 1,862. The
total one-off items in this result, including the above-mentioned
write-off of intangible and tangible assets, depreciation of
inventory, and restructuring provisions, totalled NOKm 1,793.
The loss before tax for the year exclusive of these one-off costs
was NOKm 68. Earnings Per Share (EPS) for 2000 was NOK
-34.14 compared to an EPS of NOK 0.66 in 1999. The company’s
other operating expenses were reduced during the year, mainly
as a result of the reduction in staff, but also through stricter cost
control and improved operational focus.
The loss for the year, write-offs and provisions lowered the
group’s equity from NOKm 2,557 to NOKm 711, mainly as a result
of the reduction in total intangible assets from NOKm 1,607 to
NOKm 33, still leaving the company with a healthy equity ratio
of 69% as of December 31, 2000. The total provisions for
restructuring were at year-end NOKm 72.
Note 1 The annual accounts have been prepared on a going-concern basis.
1. Jørgen Bredesen (President and CEO)
2. Jan Chr. Opsahl (Chairman)
3. Tharald Brøvig
4. Arne A. Jensen
5. Dr. Mike Windram
6. Helen Karlsen (Employee Representative)
7. Ralph Høibakk (Alternate Director)
8. Dr. Abraham Peled (Deputy Chairman)
1
4
5
3
6 87
2
Annual Report 20005
Annual Report 2000 6
The majority of these provisions will be applied in the first half of
2001. As the one-off charges consist mainly of balance sheet
revaluations, they do not have a cash effect, and together with a
limited negative cash flow of NOKm 7 from operations,
TANDBERG Television has maintained a strong financial position.
As of 31 December, 2000, the group had cash and liquid assets
of NOKm 343. There is also a potential in reducing the group’s
working capital level from the current NOKm 594 to free up
further capital.
Internal and external environmentPersonnel and organisation
During the year, TANDBERG Television went through significant
organisational change, as focus was put on integrating the
merged units into one global operation, which is headquartered
in Norway, has a major operation in the UK, and sales offices in
the USA, Hong Kong, Australia, France and Germany. In addition,
an agreement to outsource the company’s UK production unit to
a third party manufacturing company, ACW, was signed, which
will refocus TANDBERG Television on its key areas. The transition
has commenced, and is expected to be completed in the second
quarter of 2001. At the end of 2000 the company had 615
employees, of whom 490 worked outside Norway, and during the
first half of 2001, approximately 85 further employees will be
transferred to ACW as a part of the company’s outsourcing of
the UK manufacturing. The know-how and technology resource
represented by its staff, when combined with the strength of its
customer base, gives the company the mix of structure and
creativity necessary to produce leading edge solutions.
TANDBERG Television recognises that its employees are its key
assets, and is committed to maintaining a stimulating working
environment for staff through providing opportunities for career
development. The company aims to attract and retain the best
people within the digital television industry.
Health, environment and safety
Sick leave in the group is low, less than 1%. No serious work-
related injuries or accidents have occurred or been reported
during the year which have resulted in material damage to plant
or injuries to individuals. The working environment is good, and
the company does not carry out any activities that pollute the
environment.
Shareholders and capital
At the start of 2000, TANDBERG Television had a share capital of
NOK 109,054,496 consisting of 54,527,248 shares at NOK 2 par
value. During the year, the company issued 200,000 shares, and
at 31 December 2000 TANDBERG Television had a share capital
of 109,454,496 made up of 54,727,248 shares at NOK 2 par
value. There were no major changes in shareholder structure
during 2000. In addition, the company has the authorisation to
issue a further 2,900,000 shares to option programmes and
500,000 shares for share-save schemes.
Application of profit/loss
The Board proposes that the net loss for 2000 of TANDBERG
Television ASA amounting to NOKm 859 is deducted from other
equity with NOKm 475, and NOKm 384 from share premium
reserve. Total equity after this loss equals NOKm 1,631 whereof
distributable equity equals NOK 0. The Board does not propose
the payment of a dividend.
Jan Chr. Opsahl,
Sign
Chairman
Arne A. Jensen
Sign
Ralph Høibakk,
Sign
Alternate Director
Dr. Abraham Peled,
Sign
Deputy Chairman
Dr. Mike Windram
Sign
Jørgen Bredesen,
Sign
President and CEO
Tharald Brøvig
Sign
Helen Karlsen,
Sign
Employee Representative
Erik Engebretsen,
Sign
Executive Director of
TANDBERG Television ASA
Lysaker, 2 March 2001
The Board of Directors of TANDBERG Television ASA
Profit and Loss Account1 JANUARY TO 31 DECEMBER 2000 (NOK 1,000)
TANDBERG Television ASA TANDBERG Television GROUP
1998 1999 2000 Note 2000 1999 1998
OPERATING REVENUE
0 0 0 Operating revenue 2 1,187,574 483,503 274,616
0 0 0 Total 1,187,574 483,503 274,616
OPERATING EXPENSES
0 0 0 Cost of goods sold -557,373 -242,788 -143,346
1,523 2,166 2,612 Salaries and other personnel costs 4 -403,174 -132,332 -44,524
0 0 -98 Ordinary depreciation 6,7 -84,073 -30,601 -1,960
-858 -3,365 -11 289 Other purchasing, sales and administration costs -233,530 -69,399 -26,977
-2,381 -5,531 -13,999 Total operating costs -1,278,150 -475,120 -216,807
-2,381 -5,531 -13,999 OPERATING PROFIT BEFORE WRITE-OFFS -90,576 8,383 57,809
AND PROVISIONS
WRITE-OFFS AND PROVISIONS
0 0 0 Write-off intangible and fixed assets 6,7 -1,565,590 0 0
0 0 -26,700 Other provisions -227,886 0 0
0 0 -26,700 Total write offs and provisions -1,793,476 0 0
-2,381 -5,531 -40,699 OPERATING PROFIT -1,884,052 8,383 57,809
FINANCIAL INCOME/EXPENSE
0 11,468 -894,297 Income/loss on investments in group companies 0 0 0
19,850 55,930 101,154 Financial income 3 25,168 35,324 25,116
-21 -90 -1 Financial expense 3 -2,966 -4,623 -2,304
19,829 67,308 -793,144 Net financial items 22,202 30,701 22,812
17,448 61,777 -833,843 PROFIT BEFORE TAX -1,861,850 39,084 80,621
-4,892 -17,327 -25,031 Taxes on income 20 -5,097 -14,081 -22,786
12,556 44,450 -858,874 NET PROFIT FOR THE YEAR -1,866,947 25,003 57,835
Earnings per share NOK 5 -34,14 0,66 1,83
Earnings per share, fully diluted NOK 5 n.a. 0,66 1,82
Annual Report 20007
Annual Report 2000 8
Balance SheetAS OF 31 DECEMBER 2000 (NOK 1,000)
TANDBERG Television ASA TANDBERG Television GROUP
1998 1999 2000 Note 2000 1999 1998
Assets
FIXED ASSETS
Intangible assets
Intellectual property rights, patents, goodwill
0 0 0 and trade names 6 0 1,574,018 74
6,805 6,805 7,489 Deferred tax benefits 20 33,424 32,700 5,655
6,805 6,805 7,489 Total intangible assets 33,424 1,606,718 5,729
6,498 Machinery and outfittings 7 154,607 198,303 3,942
Financial fixed assets
472 1,373,065 1,197,417 Loans to group companies 9 0 0 0
46,299 718,420 231,488 Shares in subsidiaries 8 0 0 0
0 0 0 Shares in other companies 10 75 75 75
46,771 2,091,485 1,428,905 Total financial fixed assets 75 75 75
53,576 2,098,290 1,442,892 Total fixed assets 188,106 1,805,096 9,746
CURRENT ASSETS
0 0 0 Inventory 11 149,401 179,859 5,671
0 0 0 Advance payments to suppliers 12 26,001 26,001 17,202
0 0 0 Accounts receivable 13 289,804 286,129 39,184
0 92,516 79,308 Other current receivables 27,390 156,819 8,716
0 92,516 79,308 Total receivables 343,195 468,949 65,102
457,342 291,806 208,983 Cash and bank 14 343,345 374,401 590,236
457,342 384,322 288,291 Total current assets 835,941 1,023,209 661,009
510,918 2,482,612 1,731,184 Total assets 1,024,047 2,828,305 670,755
Equity and debt
EQUITY
Paid in equity
64,397 109,054 109,454 Share capital 15,16 109,454 109,054 64,397
12,880 1,895,555 1,521,465 Share premium 15 1,521,465 1,895,555 12,880
77,277 2,004,609 1,630,919 Total paid in equity 1,630,919 2,004,609 77,277
430,093 474,543 0 Other equity 15 -920,032 552,412 510,484
430,093 474,543 0 Total retained earnings -920,032 552,412 510,484
507,370 2,479,152 1,630,919 Total equity 710,887 2,557,021 587,761
Provisions
0 0 0 Pension obligations 19 51 1,126 683
0 0 0 Other provisions 18 72,022 22,085 0
0 0 0 Total provisions 72,073 23,211 683
Short term debt
7 537 3,123 Accounts payable 138,784 133,280 26,267
3,029 0 685 Tax payable 20 2 485 14,660 19,177
512 284 47 Tax withholdings -12,680 -1,299 4,452
0 2,639 96,410 Other short term debt 17 112,497 101,432 32,415
3,548 3,460 100,265 Total short term debt 241,087 248,073 82,311
3,548 3,460 100,265 Total debt 313,160 271,284 82,994
510,918 2,482,612 1,731,184 Total debt and equity 1,024,047 2,828,305 670,755
Lysaker, 2 March 2001. The Board of Directors of TANDBERG Television ASA
Jan Chr. Opsahl,
Chairman
Dr. Abraham Peled,
Deputy Chairman
Tharald Brøvig Arne A. Jensen Dr. Mike Windram
Helen Karlsen
Employee
Representative
Ralph Høibakk
Alternate Director
Jørgen Bredesen,
President and CEO
Erik Engebretsen,
Executive Director of
TANDBERG Television ASA
Cash Flow Analysis1 JANUARY TO 31 DECEMBER 2000 (NOK 1,000)
TANDBERG Television ASA TANDBERG Television GROUP
1998 1999 2000 Note 2000 1999 1998
Cash flow from operations
17,448 61,777 -833,843 Profit before tax -1,861,850 39,084 80,622
0 -3,029 0 Tax payments in the period -17,957 -19,177 -16,058
0 0 98 Ordinary depreciation 6,7 84,073 30,601 1,960
21 90 662,580 Items classified as investment or financing 1,571,052 4,623 -3,159
7 -92,410 2,586 Movements in stocks, creditors and debitors 32,287 -322,681 6,043
7,790 -3,024 81,819 Change in other accruals 185,107 -71,702 2,303
25,266 -36,596 -86,761 Net cash flow from operations -7,287 -339,252 71,711
Cash flow from investments activities
0 0 -6,498 Purchase of fixed assets 7 -31,444 -1,799 292 -2,362
0 -672,121 -204 Purchase of shares in other companies 0 0 0
0 0 0 Receipts from disposals of other investments 0 0 234
0 -672,121 -6,702 Net cash flow from investment activities -31,444 -1,799,292 -2,128
Cash flow from financing activities
-21 -90 -1 Interest paid -2,966 -4,623 -2,303
267,705 1,927,332 10,641 Proceeds from share issues 10,641 1,927,332 267,705
-472 -1,372 593 0 Group loans 0 0 0
0 -11,468 0 Group contributions 0 0 0
267,212 543,181 10,640 Net cash flow from financing activities 7,675 1,922,709 265,402
292,478 -165,536 -82,823 Net change in liquidity during the year -31,056 -215,835 334,985
164,864 457,342 291,806 Liquid assets at 1 January 374,401 590,236 255,251
457,342 291,806 208,983 Liquid assets at 31 December 343,345 374,401 590,236
Annual Report 20009
Annual Report 2000 10
Note 1 Accounting principlesConsolidation principles
The consolidated accounts include the parent company
TANDBERG Television ASA and companies in which the parent
owns more than 50% of the voting stock. All inter-company
transactions, profits, receivable and payables are eliminated in
the consolidated accounts.
The cost of shares in subsidiaries is eliminated against the equity
of the subsidiary at the date of acquisition or establishment. Any
amount paid in excess of the underlying equity is attributed to the
various assets and liabilities of the subsidiary and any remaining
amount is classified as goodwill. A corresponding policy is
followed when acquiring a business that is not incorporated. The
cost of business acquired includes beyond the purchase price, all
directly related external costs related to the acquisition.
Companies and businesses acquired or started up during the
year are included in the consolidated accounts from the time
TANDBERG Television acquired the control of or started up the
other entity.
Translation of foreign subsidiaries
The profit and loss accounts of foreign subsidiaries are
translated at the average exchange rates for the year. Balance
sheet items for integrated companies are translated at the
historical exchange rates except for monetary items, which are
translated at the exchange rates prevailing on 31 December. The
corresponding translation gains and losses are charged to profit
and loss accounts. For other subsidiaries, all balance sheet items
are translated at the exchange rate prevailing on 31 December.
Translation gains and losses are charged against equity.
Operating revenues
Income from the sale of goods is recognised at the date of
delivery. Income from services is recognised as the service is
provided. Long term manufacturing contracts (projects) are
accounted for according to the percentage of completion
method. Where losses are anticipated on a project, provision is
made for the full amount of any expected loss.
Classification
Current assets and current liabilities include all balance sheet
items expected to be realised within 12 months. An item is
classified as extraordinary if it is material in amount, unusual in
nature and is expected to occur infrequently or irregularly.
Accounts receivable
Accounts receivable from customers are recorded at face value
and written down by the amounts of any expected losses.
Inventories
Inventories of raw materials and components purchased from
third parties are valued at the lower of FIFO cost or net realisable
value. Inventories of work in progress and finished goods are
valued at the cost of production.
Shares
Shares in subsidiaries are valued at the lower of cost and
estimated long-term value.
Machinery and outfittings
Machinery and outfittings are depreciated on a straight-line
basis over 3-5 years.
Leasehold improvements are depreciated over the lifetime
of the lease.
Patents, similar rights and research & development
Patents and similar rights were, until fully written off, amortised
based upon expected revenues to be generated from these
assets over the next 15 years.
Self-generated research and development are expensed as
operating costs as they are incurred.
Foreign currency
Current assets and liabilities denominated in foreign currencies
are valued at the exchange rate applicable at the date of the
balance sheet to the extent not hedged through forward
exchange contracts in which case the forward rate is used.
Employee share purchase schemes
The Group has share option schemes or share saving
programmes that include all employees in EMEA and the
Americas. To the extent the options or shares are issued at less
than the market value, the difference between market and issue
price is charged as a payroll expense.
Social security taxes related to the difference between strike
price and market price at year end are provided for over the
lifetime of the programmes.
Pension arrangements
The Group has a defined benefit plan for its Norwegian and
German employees arranged through an insurance company.
Pension liabilities are recognised in the balance sheet in
accordance with the Norwegian provisional pension accounting
standard. The employees in the other foreign subsidiaries are
covered through defined contribution plans.
Notes to the Financial Statements
Taxes
The tax charge in the profit and loss statement consists both of
taxes payable for the period and the change in deferred taxes.
The change in deferred taxes reflects future taxes payable or
receivable that arise as a result of the year’s activities. Deferred
taxes are included as a fixed asset or long-term liability in the
balance sheet. A deferred tax asset is only recognised to the
extent it is assured beyond reasonable doubt it will be realised.
Cash flow statement
The cash flow statement is prepared according to the provisional
standard issued by the Norwegian Accounting Standards Board.
Note 2 Operating revenuesOperating revenues by region (NOKm):
Region 2000 1999 1998
EMEA* 676.2 382.0 227.2
Americas 312.6 73.0 27.5
APAC** 198.8 28.5 19.9
Total 1,187.6 483.5 274.6
* Europe, Middle East and Africa. ** Asia and the Pacific region
Note 3 Financial market risksTANDBERG Television is exposed to currency risk as it has large
income in EURO, USD, and GBP, with large costs in GBP and NOK.
This results in a net exposure to USD and EURO, with a negative
net exposure to GBP, relative to NOK. Major contracts in other
currencies have to some extent been hedged by currency forward
contracts to reduce the degree of currency risk. As of 31.12.2000,
the group had two outstanding contracts, against EURO (EURm
2,0) and Australian Dollars (AUDm 1,7).
Note 4 Contracts of employmentNo senior employee of the group has a contract of employment
that provides for more than one year's salary as compensation in
the event of leaving employment.
(NOK 1,000) 2000 1999 1998
Salaries 313,766 97,812 31,925
Social security cost 29,405 11,605 4,953
Pension costs 20,505 5,481 1,337
Other payments 39,497 17,434 6,327
Total 403,174 132,332 44,542
Payments to senior employees (1,000)
CEOs Board of Directors
Salary and other compensation GBP 589 NOK 755
Pension Costs GBP 8 NOK 0
Total GBP 597 NOK 755
The CEO salary includes payments relating to the transition
between the former and new CEO. The Chairman of the Board has
60,000, and the CEO has 100,000 share options in the company.
A loan of NOK 1.408.000, at a 5% annual interest rate, was given
to the CEO during the year 2000. The loan was fully repaid in
February 2001. No other loans or guarantees have been given to
the chairman of the board, directors or related parties.
The executive director of TANDBERG Television ASA had a total
salary of NOKm 1.1, 215,000 stock options, and is a member of
the company’s pension plan agreement. The cost for 2000 was
NOK 74.447.
Auditor
The auditor’s fee for 2000 has been charged to expense with NOK
440,000 for the parent company while other fees to the auditor
amounted to NOK 282,000.
Estimated audit fees for the Group amounted to NOK 1,146,000
and NOK 4,105,738 for other services.
Note 5 Earnings per shareEarnings per share is calculated on the basis of profit for the
year, divided by the time weighted average number of shares
issued, calculated on a daily basis.
2000 1999 1998
Profit for the year (NOK 1.000) -1,866,947 25,003 57,834
Average number of shares 54,663,803 37,884,485 31,661,343
Earnings per share -34,14 0,66 1,83
Average number of shares fully diluted 55,240,053 38,027,993 31,704,724
Earnings per share, fully diluted* n.a.** 0,66 1,82
* Dilution effects include share options issued in 1998, 1999 and 2000. See note 15.
** In the presentation of earnings per share, any dilution effect which increases earnings per share shall not be presented according to Norwegian generally accepted accountingstandards.
Note 6 Intangible assetsNOK 1,000 Goodwill Patents and Trademark Total
similar rights
Acquisition cost at 1 January 535,450 1,050,287 420 1,586,157
Additions during the year 0 0 0 0
Disposals during the year 0 0 0 0
Acquisition cost at 535,450 1,050,287 420 1,587,15731 December
Accumulated depreciation 6,851 4,900 388 12,139at 1 January
Depreciation for the year 9,943 6,900 32 15,598
Write downs during the year 518,656 1,038,487 0 1,557,143
Written off on disposal 0 0 0 0
Accumulated depreciation 535,450 1,050,287 420 1,586,157at 31 December 2000
Book value at 31 December 2000 0 0 0 0
Annual Report 200011
Annual Report 2000 12
As a result of negative cash flows in 2000 and expected future
cash flows for the foreseeable future related to the operations
purchased from Ordinto Investments Limited on 14 October
1999, the Board of Directors decided to write off intangible
assets and goodwill with effect from second quarter of 2000.
Impairment reviews have been conducted at year end in order to
assess the value of the intangible assets. The review indicated no
basis for a reversal of the write-off. The goodwill, patents and
similar rights were related to this acquisition.
Depreciation rates are disclosed in Note 1.
Note 7 Machinery and outfittingsNOK 1,000 Machinery and outfittings
Acquisition cost at 1 January 237,297
Additions during the year 31,944
Disposals during the year 0
Acquisition cost at 31 December 269,241
Accumulated depreciation at 1 January 38,989
Depreciation for the year 67,198
Write downs during the year 8,447
Written off on disposal 0
Accumulated depreciation at 31 December 114,634
Book value at 31 December, 2000 154,607
As a result of negative cash flows in 2000 and expected future
cash flows for the foreseeable future related to the operations
purchased from Ordinto Investments Limited on 14 October
1999, the Board of Directors decided to write down certain fixed
assets with effect from second quarter of 2000.
Depreciation rates are disclosed in Note 1.
Note 8 Shares in subsidiariesShare Nominal No. of Owner- Book valuecapital value shares ship (NOK)
TANDBERG Television Systems AS (Lysaker, Norway)
NOK 111,350,000 NOK 10 11,135,000 100 % 210,667,000
TANDBERG Television Ltd. (Southampton, UK)
GBP 43,146,863 GBP 1 43,146,863 100 % 01
TANDBERG Television Inc. (Orlando, USA)
USD 2,347,677 USD 1 2,347,677 100 % 17,666,629
TANDBERG Television Pty Ltd. (East Sydney, Australia)
AUD 90,188 AUD 1 90,188 100 % 460,740
TANDBERG Television Ltd. (Hong Kong)
HKD 2,437,885 HKD 1 2,437,885 100 % 2,490,100
TANDBERG Television GmbH (Ismaning, Germany)
DEM 48,896 DEM 48,896 1 100 % 203,750
Total 231,488,219
1 The shares have been fully written off in 2000 from the original costs of NOKm 551.
Note 9 Group loansLong term loans from parent company to group companies were
at December 31, 2000 amounting to:
Company NOK Local currency Interest rate(1,000) (1000)
TANDBERG Television Systems AS 1,038,896 NOK 1,038,896 Nibor + 1%
TANDBERG Television Ltd. 503,642 GBP 38,724 Libor + 1% 1
TANDBERG Television Inc. 29,472 USD 3,727 Libor + 1%
TANDBERG Television Ltd. 2,768 AUD 2,646 Libor + 1%
TANDBERG Television Pty. Ltd. 1,024 HKD 198 Libor + 1%
1The loan is subordinated and interest is only accruing to the
extent TANDBERG Television Ltd. shows a net profit for the year.
No interest has been charged for 2000. A provision of NOKm 341
has been made against this loan.
Note 10 Shares in other companiesShare Nominal No. of shares Interest Book valuecapital value (NOK)
Norteam AS 500,000 1,000 75 15% 75,000
Note 11 Inventories(NOK 1,000) 2000 1999 1998
Raw materials and components 93,844 93,787 10
Work in progress 17,435 24,774 3,605
Finished goods 38,123 61,298 2,056
Total 149,401 179,859 5,671
Note 12 Advances to suppliersThe group has made an advance payment of NOKm 30 to
Hadeland Produkter AS, a sub-contractor to the company. The
advance is secured on the inventories of Hadeland Produkter AS.
TANDBERG Television has placed orders at Hadeland Produkter
AS for an amount of NOKm 73 at year end. The Group has made a
provision of NOKm 4 against possible obsolescence.
Note 13 Accounts receivableA provision for losses on account receivables from customers of
NOK 16,805,000 has been made in the consolidated accounts.
The provision in the consolidated accounts in the previous year
was NOK 13,650,000. Included in accounts receivables are
accrued income related to long term projects amounting to
NOKm 29,3.
Note 14 Liquid assetsLiquid assets include restricted deposits for taxes withheld from
employees of NOK 2,941,405 (NOK 2,584,761 in 1999) in the
consolidated figures and NOK 91,943 (NOK 153,566 in 1999) in
the parent company accounts. Certain companies in the group
have a joint bank account and the companies participating in this
arrangement are jointly and severally liable for the accounts.
At the General Meeting on 16 April 1998, the Board was
authorised to issue up to 600,000 shares each of NOK 2,
- nominal value at a price to be decided by the Board. The
authorisation may be exercised until December 31 2001.
At the Extraordinary General Meeting on 8 October 1999 the
Board was authorised to issue up to 2,000,000 shares each of
NOK 2 - nominal value at a price of between NOK 2 - and
NOK 300 - per share. The authorisation may be exercised until
8 October 2001. It will, at the annual shareholders meeting in
2001, be proposed prolonged to 2003 on unchanged terms.
At the Ordinary General Meeting 27 April 2000, the Board was
authorised to issue up to 6,000,000 shares each of NOK 2
- nominal value at approximately market price for the purpose of
equity issues or non-cash contributions. The authorisation may
be exercised until the Annual General Meeting in 2001.
At the Ordinary General Meeting 27 April 2000, the Board was
authorised to issue up to 300,000 shares each of NOK 2
- nominal value at a price decided by the Board for the benefit
of employee options. The authorisation may be exercised until
26 April 2002.
At the Extraordinary General Meeting on 4 December 2000 the
Board was authorised to issue up to 500,000 shares each of
NOK 2 - nominal value at a price decided by the Board for the
benefit of employees abroad. The authorisation may be exercised
until the Annual General Meeting in 2002. It will, at the Annual
General Meeting in 2002, be proposed to be prolonged to 2003
on unchanged terms.
Options granted
The Board resolved in 1998 to exercise the authority granted to it
by the Annual General Meeting held on 16 April 1998 by issuing
options over 535,000 shares to senior employees at an initial
exercise price of NOK 52 per share, increasing thereafter by 1%
per month. The balance of the share option plan up to 600,000
shares was issued at NOK 72 in 1999. The share option
agreement is valid for three years, and up to one third of the
options may be exercised each year.
Note 15 Equity and ownership structure (NOK 1,000)
TANDBERG Television ASA
Share capital Share premium reserve Other equity Total
Equity as of 31 December 1999 109,054 1,895,555 474,543 2,479,152
Share issue 28 March, 2000 400 10,241 10,641
Net Profit for the year -384,331 -474,543 -858,874
Equity as of 31 December 2000 109,454 1,521,465 0 1,630,919
TANDBERG Television Group
Total Equity
Equity as of 31 December 1999 2,557,021
Share issue 10,641
Currency translation adjustment 10,172
Net Profit for the year -1,866,947
Equity as of 31 December 2000 710,887
At 31 December 2000 TANDBERG Television had a share capital of 109,454,496 made up of 54,727,248 shares at NOK 2 par value.
Authorisations to the Board of Directors
Authorisation date 16.04.98 17.06.97 08.10.99 27.04.00 27.04.00 04.12.00 Total
Valid until 31.12.01 30.06.01 08.10.01 26.04.02 26.04.01 GM 2002 0
Purpose Option schemes For key employees Option schemes Option schemes Equity issue Share-save program
Balance 01 January 2000 600,000 350,000 2,000,000 2,950,000
New authorisations 300,000 6,000,000 500,000 6,800,000
Allocation of Board authorisations
Allocated as of 01 January 2000 600,000 0 0 600,000
New directed offering 200,000 200,000
New options granted 2,000,000 86,000 2,086,000
Non-allocated 31 December 2000 0 150,000 0 214,000 6,000,000 500,000 6,864,000
Annual Report 200013
Annual Report 2000 14
The Board resolved in the year 2000 to give the Administration
and the Chairman of the Board the authority to issue options
over 2,000,000 shares to employees at an initial exercise price of
NOK 57.50 per share. The share option agreement is valid for
three years, and up to one third of the options may be exercised
each year after the year end results.
At board meetings held in the autumn 2000, the Board resolved in
total to allocate 86,000, out of the authorisation given on April 27
2000 for 300,000 shares, at an initial exercise price of NOK 57.50.
Share saving program
The Board resolved on 10 October 2000 to make 500,000 shares
available for a share saving program for employees outside of
Norway.
Note 16 20 Largest shareholdersAs of 31 December 2000, TANDBERG Television had 4,038
shareholders. 61.48% of its shares where owned by non-
Norwegian investors. A list of the 20 largest shareholders is set
out on page 19.
Note 17 Other short term liabilitiesNOK 1,000 31.12.00 31.12.99
Advances from customers 12,436 13,441
Provision for product warranties 67,644 32,761
Accruals 32,417 55,230
Total other short term liabilities 112,497 101,432
Note 18 Restructuring provisionsNOK 1,000 01.01.00 Charged to Utilised 31.12.00
profit and loss
Restructuring provision 22,085 63,467 13,530 72,022
Due to decreasing profitability in the first half of 2000, a detailed
review of the entire group was performed by the Board and
management. Immediate actions were taken, and as a result the
UK-based production facilities will be outsourced during the first
half of 2001. See note 24 for further details. The restructuring
process has resulted in a writedown of inventory of NOKm 79,
writedown of fixed assets of NOKm 8.7 during the year and other
restructuring provisions of NOKm 72 as of 31.12.00.
Note 19 Pension arrangements (NOK 1,000)The group has defined benefit plans for its Norwegian and
German employees through schemes with insurance companies.
Estimated values are used in determining the value of the
pension fund and the accrued pension liability. The group has
defined contribution plans for its US, UK, Australian and Chinese
employees.
For the Norwegian operation the estimates are based on the
following assumptions as at 31 December 2000:
Discount rate 6.0%
Expected return 7.0%
Earnings growth 3.0%
Increase in Social Security contribution (G) 3.0%
Annual pension growth 2.5%
Pension Expense - Norwegian Plan 2000 1999 1998
Current value of pension liability accrued in the year 2,160 1,861 1,208
Interest on accrued pension liability 491 419 287
Expected return on pension fund (615) (487) (324)
Allocated effect of deviations from estimates 0 0 0
Administration expenses 0 0 0
Booked employers' social security taxation 287 253 166
Pension expense - Norwegian Plan 2,325 2,045 1,337
Pension expenses other plans 18,180 3,456 0
Total pension costs 20,505 5,481 1,337
Pension fund and pension liabilities 31.12.00 31.12.99 31.12.98
Estimated accrued liability (10,848) (8,261) (6,273)
Estimated value of pension fund 10,828 7,409 5,653
Effect of estimate changes not yet booked 0 (134) (24)
Book value of net pension fund asset
(pension liability) (20) (986) (596)
Calculated employers' social security taxation (3) (139) (87)
Calculated pension fund asset (pension
liability) in the balance sheet - Norwegian Plan (23) (1,126) (683)
Calculated pension fund asset (pensionliability) in the balance sheet - German Plan (28) n.a. n.a.
Total calculated pension liability - Group (51) (1,126) (683)
Note 20 Taxation(NOK 1,000) TANDBERG Television ASA TANDBERG Television Group
Allocation of tax on income 2000 1999 1998 2000 1999 1998
Taxes payable, Norway 685 0 3,029 3,982 13,874 19,177
Taxes payable, overseas 0 0 0 1,800 408 -
Change in timing differences, Norway -685 0 0 -18,185 -2,762 1,746
Change in timing differences, overseas 0 0 0 17,500 -14,765 -
Tax effect on equity transactions 25,031 17,327 1,863 0 17,327 1,863
Tax expense 25,031 17,327 4,892 5,097 14,081 22,786
TANDBERG Television ASA TANDBERG Television Group
Timing differences 2000 1999 1998 2000 1999 1998
Short term items -32,604 0 0 -293,943 -53,350 -2,999
Long term items -917,378 -24,302 -24,302 -952,649 -25,436 -17,199
Losses carried forward 0 0 0 -104,161 -32,206 0
Total -949,982 -24,302 -24,302 -1,350,753 -110,992 -20,198
Calculated deferred tax -265,995 -6,805 -6,805 -400,271 -32,699 -5,655
Deferred tax recorded in balance sheet -7,489 -6,805 -6,805 -33,424 -32,699 -5,655
Average tax rate 28 % 28 % 28 % 30 % 29 % 28 %
Deferred tax assets in the Group are related to positive timing
differences in TANDBERG Television ASA and TANDBERG
Television Systems AS.
Profit and loss and the balance sheet for 1998 are recomputed in
order to capitalise deferred tax assets.
Reconciliation of taxes on income
TANDBERG Television ASA TANDBERG Television Group
2000 1999 2000 1999
Pre-tax profit -833,843 61,806 -1,861,849 38,635
Permanent differences 7 75 570,683 14,418
Group contribution 0 0 0 0
Bases for tax calculation -833,836 61,881 -1,291,166 53,053
Taxation -25,032 17,327 5,097 14,081
Tax rate 3 % 28 % 0 % 27 %
The tax rate for the Group deviates from 28% due to different tax
rates in UK, USA, China and Australia, in addition to valuation of
deferred tax assets as of 31.12.00.
Tax rate for TANDBERG Television ASA is 3% due to deferred tax
treatment. The principle is disclosed in Note 1.
Losses carried forward (NOK 1,000) as of December 31, 2000
UK
Losses carried forward 104,161
Losses carried forward in UK can be carried forward indefinitely.
There are no losses in other countries that may be carried
forward.
Annual Report 200015
Annual Report 2000 16
Note 21 Shares owned by members of theBoard of Directors, CEO and the AuditorJan Chr. Opsahl 171,240
Dr. Abraham Peled 0
Tharald Brøvig 2,230,800
Arne A. Jensen 20,000
Dr. Mike Windram 0
Helen Karlsen 4,052
Ralph Høibakk 42,748
Jørgen Bredesen 120,000
Erik Engebretsen 0
Auditor 0
The number of shares reported includes any shares held by
children under the age of 18 of the named individual or by
companies controlled by the individual.
Note 22 Guarantee liabilities/other liabilities
Liability (NOK 1,000) Rental due 2000 Annual increase Remaining term
Property lease: Lysaker 8,539 90% of index 3.5 years
Property lease: Stoneham 8,150 19 years
Property lease: Strategic Park 9,863 10 years
Car leases 1,211 1 to 4 years
TANDBERG Television Systems AS entered into a 5 year extended
property lease at Lysaker running from 01.04.2000.
TANDBERG Television ASA has guaranteed lease payments by its
subsidiary of NOK 2,992,000.
The group has given other financial guarantees amounting to
NOKm 33.
As at 31 December, 2000 the group has no secured debt.
TANDBERG Television ASA has given a letter of intent to give
financial support to its subsidiary in UK to the extent required
for it to continue as a going concern for the next 18 months.
Note 23 Commitments and contingenciesProvisions have been made to cover the expected outcome of
proceedings to the extent that negative outcomes are likely and
reliable estimates can be made. While acknowledging the
uncertainties of any litigation, management believes that these
matters will be resolved without a material effect on the financial
position or results of operations.
Note 24 Subsequent eventsTANDBERG Television signed a letter of intent on the 31.10.00
with ACW Technology to transfer its UK-based manufacturing
activities. The final contract was signed 21 February 2001. The
transfer programme will be completed during first half of 2001.
As part of the deal, ACW will sublease the 68,000 sq. feet
manufacturing facilities of TANDBERG Television at Hedge End,
Hampshire, UK and TANDBERG Television’s manufacturing
employees will transfer to ACW. Provisions have been made to
cover the expected costs associated with the transfer
programme.
As a part of the restructuring of the Group, the Board decided on
the 22 February 2001 to merge TANDBERG Television Systems AS
into TANDBERG Television ASA with effect from January 1, 2001.
Annual Report 200017
Annual Report 200019
Sharesand Shareholders
Shareholder policy and financial goals
The digital television market is a high growth sector with an
inherent degree of risk, as this growth may fluctuate. Equity/risk
financing is therefore a prerequisite for TANDBERG Television’s
successful long-term development. Such financing demands
higher return, and it is therefore TANDBERG Television’s goal to
increase shareholder value over time, measured by the
development of the share price, by being among the best
performing technology companies within its industry.
TANDBERG Television will create the conditions for share price
increase on the long term, by growing the company’s earnings per
share, which is to be achieved through organic value creation and
through acquisitions. For the next three-year period, the overall
goal is to organically grow revenues, and thereby boost earnings
per share, in the range of 20-30% on an annual basis, and during
this period reach a 15% pre-tax margin.
For TANDBERG Television’s share price to continually reflect the
company’s growth potential, TANDBERG Television is committed to
having an effective investor relations function, especially since the
company operates in an industry unfamiliar to most investors. As a
service function to the investment community, investor relations
will aim to continually supply information for market participants,
on an equal basis, to form the basis for knowledgeable investment
decisions.
Shares and share capital
At the start of the year, TANDBERG Television had 54,527,248
shares. During 2000, there was one directed offering of 200,000
shares, and at year end 54,727,248 outstanding shares. At the
end of the year there were 2,686,000 outstanding options within
the company, and a fully diluted outstanding number of shares of
57,413,248.
Investor relations contact
Martin P. Hoff, Finance Director
Tel. +47 67 116 200 E-mail. martin.hoff@tandbergtv.com
Graphs
1. First half 2000: Development of share price vs. Oslo Stock Exchange Technology Index
2. Second half 2000 to date: Development of share price vs. Oslo Stock Exchange Technology index
150
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31 Dec
7 Jan14
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TANDBERG Television share price
OSE Technology Index, rebased
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Annual Report 2000 20
Largest shareholders
Shareholders as of 31.12.2000
Name of Shareholder Shares Percentage (%)
Ordinto Investments 10,210,569 18.66
Chase Manhattan (nom) 3,441,544 6.29
State Street Bank and Client (nom) 2,404,747 4.39
KLP Forsikring 2,294,200 4.19
Gezina 2,230,800 4.08
Chase Manhattan (nom) 1,699,710 3.11
Phildrew Nominees 1,420,028 2.59
Boston Safe Dep (nom) 1,319,030 2.41
Credit Suisse 1,195,488 2.18
Storebrand Livsforsikring 910,100 1.66
Fidelity Funds 837,600 1.53
Vereins Und Westbank (nom) 830,900 1.52
Avanse Forvaltning 815,300 1.49
Goldman Sachs (nom) 781,594 1.43
Gjensidige NOR 771,800 1.41
Vital Forsikring 756,200 1.38
Skandia Grønt Norden 750,000 1.37
Bankers Trust Company (nom) 749,510 1.37
Fidelity Funds 688,700 1.26
Fidelity Funds 553,600 1.01
Sum, top 20 34,661,420 63.33
Remaining 20,065,828 36.67
Total 54,727,248 100.00
21 Annual Report 2000
Business Overview -Building Core Business
TANDBERG Television’s core business is focused on delivering professional solutions to
the global media industry. The company’s track record of technology innovation, coupled
with its proven systems integration and global support capabilities places it in a strong
position in both the Direct To Home television markets and the Contribution and
Distribution sectors.
Annual Report 2000 22
Driven by the need to make best use of precious bandwidth and large-scale
infrastructure investment, digital broadcasting to the home (DTH) is now
enabling the introduction of new services to the living room like home
shopping and banking, enhanced video services such as video-on-demand
or high definition TV and interactive entertainment.
Direct to Home
TANDBERG Television works withleading DTH satellite broadcastersaround the world, including:
• BSkyB• Orbicom• SKY digital• SKY PerfecTV • STAR
For consumers it means a better viewing
experience with more choice, more channels and
a new world of interactive information and
entertainment accessible from their television
sets. For content providers it enables increased
routes to market and an opportunity to innovate.
For broadcasters it means achieving business
economies unavailable with analogue, and creates
new revenue generating services, as well as a
chance to differentiate in service and content.
TANDBERG Television has a strong position in the
DTH sector as one of the leading providers of
digital compression infrastructure to the global
broadcast industry. TANDBERG Television, and its
network of business partners, work closely with
satellite, terrestrial and cable broadcasters to
provide the systems and expertise that help them
deliver their business plans and introduce new
revenue generating services to the consumer.
The company continues its open systems policy
with active participation in standards
organisations, industry groups and
interoperability tests. Through close co-operation
with strategic partners including conditional
access, management and return path vendors,
TANDBERG Television is working to provide
broadcasters with open interoperable solutions
that optimise bandwidth utilisation, decrease
operational costs and provide interactive services.
Integrated DTH solutions
At the heart of TANDBERG Television’s solutions
for the DTH market is the company’s evolution
5000 broadcast system. This range of products,
designed for the management and transmission
of digital TV signals across satellite, cable or
terrestrial networks, includes open solutions for
encoding, multiplexing, modulation, statistical
multiplexing and control software. It meets
customers’ demands for high performance open
systems that are very flexible.
Alongside evolution 5000, TANDBERG Television
produces a range of solutions that meet the
specific needs of customers in the satellite, cable
and terrestrial DTH markets.
Having designed, built and commissioned the
digital infrastructure behind 17 out of the 23
major DTH-Satellite systems world-wide, it is from
this market segment that TANDBERG Television
first gained its experience and proven ability to
deliver large scale complex projects. While only a
few opportunities for new installations remain,
the next few years will see steady repeat business
from the existing customer base as product
performance and feature improvements allow
satellite broadcasters increased service offerings
and tangible cost saving benefits. In addition to
some of the longest established digital operators
increasing channel counts, satellite broadcasters
continue to spearhead the innovation in
interactive service offerings, presenting
corresponding system upgrade and expansion
opportunities for TANDBERG Television.
Satellite
Annual Report 200023
Direct to Home
Cable television’s move from analogue to digital
broadcasting offers a whole new world of
opportunities, both for the cable operators and for
the end-user. With a two-way broadband network,
and the necessary digital technology, cable
subscribers can benefit from improved TV quality, a
wider selection of programmes, video-on-demand,
pay per view, telephony, Internet, gaming and
e-commerce, all directly on the TV. These new
services will provide the cable operators the prospect
of generating additional profit as well as giving them
a competitive edge against other information service
providers via satellite, terrestrial and telecom.
2000 was a successful year for TANDBERG Television
in the digital cable market segment. The signing of a
reseller agreement for return path products with
Cisco late in the year now allows TANDBERG
Television to offer complete 2-way interactive
solutions to the cable industry, supporting additional
revenue opportunities for entertainment
broadcasting, interactivity, web browsing and
telephony across the networks. Given these revenue
generation opportunities for cable operators, a
growing world-wide prospect exists for TANDBERG
Television to utilise its systems design experience
and integration skills, while working with its business
partners, as the cable segment transitions to digital.
TANDBERG Television solutions
Digital cable promises to offer cable operators an
impressive choice of new suppliers and solutions - so
choosing the right partner becomes more important
than ever. The main technology providers in digital
cable will be the companies who understand the
digital world from experience, and are able to offer a
total solution to their customers, including system
design and integration of the necessary third party
products and solutions.
A typical cable TV network consists of a Central Head-
End, with distributed Regional Head-Ends. The
Central Head-End is traditionally the satellite uplink,
the terrestrial compression centre or the main Cable
Head-End. This is where the video and audio is
compressed before multiplexing the services into
transport streams. Signal scrambling (conditional
access) is applied prior to distribution in order to
prevent unauthorised reception of the signals. The
distribution network can be a satellite, terrestrial or
telecom network. In the Regional Cable Head-Ends,
the signals are received, processed/decoded before
redistribution into the cable network in digital or
analogue format.
TANDBERG Television can support complete
solutions for Digital Cable Head-Ends, offering a wide
range of high-quality products such as: encoders,
multiplexers, transport stream descramblers, telecom
adapters, modulators, decoders, monitoring
equipment, system management and network
control. The company’s technology is based upon
open standards, which makes it possible for it to
integrate third party products and solutions, such as
conditional access systems, service information
management, broadband routers and video servers,
into its systems, providing a complete digital Cable
Head-End platform. A modular design ensures easy
system expansion to meet future customer’s
business and technology requirements.
In addition, TANDBERG Television has been one of
the major suppliers of Digital Turn-around solutions
for national Cable Head-Ends in Europe, based on its
ability to provide customised solutions with proven
technology.
Cable TV
Annual Report 2000 24
In November 2000, Switzerland’s largest cable
operator, ntl-owned Cablecom AG, selected
TANDBERG Television to provide a turnkey
solution for the roll out of its SWISSFUN
broadband TV network. Cablecom was in the
process of building a state-of-the-art digital cable
TV network, to offer enhanced services to viewers,
but needed interoperable broadcast management
systems to build the backbone of the network.
TANDBERG Television was chosen to provide
systems from its evolution 5000 range, including
compression and multiplexing equipment that
was subsequently deployed to deliver the
SWISSFUN network to more than 1.4 million
homes across Switzerland. As well as supplying
the solution, TANDBERG Television also provided
the systems integration and support services for
both its own equipment, and interoperable
products from third party vendors.
TANDBERG Television works with leading cable operatorsaround the world, including:
• CableCom• Cable and Wireless • INC • Madritel • Matav • Mediakabel • TeleDanmark
“To achieve this project we needed a partner that could offer us advanced solutions combined
with competitive costs and an open approach to working with other vendors. The solution from
TANDBERG Television does just that, and allows us to provide a reliable digital service to Swiss
cable subscribers, thus offering our viewers a wider choice of home entertainment, such as
interactivity, email and home banking.”
Erich Blunier, Technical Director of Cablecom.
01 Case study:
Turnkey solutions for Cablecom
Suisse
Annual Report 200025
Direct to Home
Analogue terrestrial broadcasting is the world’s
most common television delivery mechanism to
the home and subsequently the transition to
digital broadcasting on these networks offers
significant opportunity for TANDBERG Television.
Both the European based DVB-T and the US
initiative through ATSC Digital Terrestrial
broadcasting deal with the digital delivery of
content (video, audio and data) to viewers homes.
At the home it is received using a conventional
terrestrial antenna and either a Digital TV with an
integrated decoder or a Set-Top-Box decoder
connected to an existing, or new TV.
Serving both DVB-T and ATSC terrestrial
broadcasters and network operators, TANDBERG
Television is the recognised leader in this market.
The company employs engineers who are credited
with having invented the foundation compression
and transmission technologies for digital
terrestrial TV (DTTV) and has gained significant
market share around the world. The company
continues to play a major role in the development
of both the DVB-T and ATSC standards.
The largest activity in digital terrestrial TV (DTTV)
during 2000 has been in the Asia Pacific region,
and especially Australia where TANDBERG
Television has enjoyed significant success, as the
innovators in this region implement infrastructure
to support their service launches. Following first
service launches at the end of 1998, the European
market is steadily growing with several
implementations to launch in 2001, and a number
of trial systems likely to expand into commercial
launches. The Americas and several other ATSC
market opportunities have been delayed due to
debates on reception performance. A resolution to
these debates will restart these markets in 2001.
A combination of both new implementations and
second phase repeat business offers the greatest
opportunities to TANDBERG Television in 2001.
The driver for digital transition can come from a
number of directions. Public service broadcasters
are looking to expand their offerings, commercial
free-to-air broadcasters are seeking new channel
opportunities, while pay-TV providers see
terrestrial as an alternative mechanism -
especially in areas with little cable and satellite
coverage. In areas of high cable penetration, DTTV
is being investigated for the delivery of portable
and mobile reception of video or data services.
The biggest challenge facing DTTV implementers
is the creation of a business case and service mix
attractive enough for consumers to spend money
on Set-Top-Box (STB) reception equipment,
especially in exclusively free-to-air cases where
there is no pay-TV operator to fund the cost of
consumer STBs. In these cases integrated digital
televisions, at little additional cost, are seen as
the solution. While Europe continues to look at a
service mix of free-to-air and pay-TV, America and
Asia are looking towards the superior quality high
definition TV as the way forward.
Whatever the outcome of the service mix decisions,
TANDBERG Television as the leading supplier of
flexible DTTV solutions, is well positioned and
most capable of meeting all national and regional
broadcasting architecture needs.
Digital Terrestrial TV
Annual Report 2000 26
Gold
TANDBERG Television works withleading DTTV operators around theworld, including:
• Australian BroadcastingCorporation (ABC)
• BBC• Network Nine• Network Ten• ntl• OnDigital• Sinclair Broadcasting• Tribune Broadcasting
The world’s athletes weren’t the only people to
grasp gold in Australia during 2000. TANDBERG
Television added to its digital terrestrial trophy
cabinet with significant wins, valued at over
NOKm 195 in the year 2000, with 4 Australian
capital city broadcasters. As Australian television
prepared for the January 2001 launch of digital
terrestrial TV, ABC, Network Nine, Network Ten and
SBS chose TANDBERG Television’s technology,
solutions, systems integration and support expertise
to be deployed in four of the five Australian
capital city free to air television networks.
TANDBERG Television’s solutions and expertise
will play an important role in bringing a new era of
digital television to Australian living rooms and in
helping its partners introduce new revenue
generating services. The systems comprise both
network multiplex management and emission
equipment for Australia’s eight major cities -
Adelaide, Brisbane, Canberra, Darwin, Hobart,
Melbourne, Perth and Sydney. For viewers,
digital terrestrial TV will mean wider choice and a
higher quality TV offering, as new services are
introduced such as interactivity, email and
enhanced channel services
The major test came in January 2001, when the
four networks went live. TANDBERG Television
solutions delivered Australia’s first digital TV
signals, without a single problem.
Australia
“As a major commercial television broadcaster in Australia, committed to the introduction of
digital television, we wanted more than just a product supplier. We were looking for a true
technology partner and an organisation that totally understands digital terrestrial
broadcasting. TANDBERG Television is able to offer us proven high definition and standard
definition compression, transmission and broadcast management solutions, supported by
the expertise of engineers, closely involved with the development of DTT.”
Gerry Thorley, General Manager of Network Operations at Network Ten Pty Limited.
02 Case study:
Going for gold in Australia
Annual Report 200027
Contribution and Distribution
Fixed contribution and distribution (C&D) is where content is
transferred between studios or affiliates to various locations
before it finally reaches the home, either through digital head-
ends or decoded back to analogue formats.
Fixed contribution deals with point-to-point, high quality content
transfer between studios where the material is edited, mixed and
repackaged with, for example, language adjustments, addition of
local news and weather and ad-insertion, for onwards distribution.
Within this sub-segment, customer focus remains, as ever, on
picture quality.
The distribution sector deals with the bulk transmission of
finished programme material from a TV studio or a programme
packager. The quantity of channels being distributed typically
demands cost effective and efficient use of bandwidth, while at
the same time requiring that quality be maintained.
The growth of the digital TV market and the proliferation of
channels and content has led to C&D systems becoming ever
more complex, creating an increasing need for end-to-end
solutions, in preference to merely a collection of black boxes
provided by numerous vendors. TANDBERG Television has been
able to demonstrate an in-depth understanding of these complex
systems and has been well placed to provide tailored solutions
that fulfil customer revenue potentials and provide added value
services such as data delivery to maximise bandwidth utilisation.
The migration from analogue to digital is an area in which
TANDBERG Television has strong credentials. Access to customer
reference sites has played a key role in winning crucial bids.
Investment in technical pre-sales support has enabled
TANDBERG Television to assist those making this transition from
analogue to digital networks. While a comprehensive range of
post-sales support services enables customers to keep their
mission critical transmissions on-air.
TANDBERG Television solutions
TANDBERG Television offers the world's leading range of
compression encoders to provide flexibility, security and optimum
picture quality for all contribution and distribution applications.
Through support of statistical multiplexing the evolution 5000
range of encoders ensures efficient use of bandwidth. Coupled with
a user-friendly system control, flexible conditional access, versatile
programme scheduling and a wide range of professional and
commercial integrated receiver/decoders, TANDBERG Television
remains at the forefront within the fixed C&D market segment.
Satellite C&D is distance transparent and can provide immediate
access to the entire world without the need for complex
terrestrial infrastructure. The advance of telecoms technologies
such as Asynchronous Transfer Mode (ATM) has, however,
recently enhanced interest by broadcasters who can see the
business benefits of having flexible, on-demand bandwidth
accessible through switched telecoms networks.
TANDBERG Television has been investing heavily in advanced
satellite and ATM technologies and a number of key product
launches are to be made to the market during 2001. The global
transition from ATM to Internet Protocol (IP) networks over the
coming months will gather pace, providing TANDBERG Television
with further opportunities primarily in Europe and the USA but
also during 2002 in the Far East. It is the ability to meet both
satellite and telecoms transmission requirements, that ideally
positions TANDBERG Television to offer the best solutions to
meet broadcasters' individual needs.
The backbone of the broadcast market is the contribution and distribution segment.
TANDBERG Television has been at the forefront of this market segment winning many
prestigious system sales and contracts in both the fixed contribution and distribution
and the mobile contribution markets.
Fixed Contribution and Distribution
Annual Report 2000 28
TANDBERG Television works with leading contribution anddistribution organisations around the world, including:
• BT Broadcast Services• FOX Sports Net• Network Ten Ltd• PanAmSat Corporation• Pramer S.C.A.• Telesat Canada
FOX Sports Net selected TANDBERG Television to
provide various digital broadcast system elements
for integration into a national ATM-based content
contribution and distribution network in March
2000. Using ATM technology for connecting
multiple locations and multiplexing different
connections over a single link is becoming an
appealing, cost effective solution for digital
broadcasters. TANDBERG Television has worked
with broadcasters around the globe providing
them with the necessary encoding, decoding,
interface, switching and control tools and signing
FOX Sports Net has proved a significant win.
The FOX Video Network (FVN) will enable regional
production and operational facilities around the
US to transmit and receive regional sports
content. The control of the network, including
encoders, decoders and all broadcast components
will be handled at the FOX Video Network -
Network Operations Center in Los Angeles.
“FOX Sports Net selected TANDBERG Television to provide a turnkey encoding, decoding,
ATM interfacing and control system for this network because of its experience in the digital
broadcast industry and our extensive experience with TANDBERG Television’s MPEG-2 encoding
and decoding systems. TANDBERG Television was able to bring to the table all the right pieces
we needed to build a customer controlled ATM based video network, and with a very quick
turnaround.”
Robert Dutcher, former Director of National Technical Operations for FOX Sports Net.
America
03 Case study:
ATM Network for FOX Sports Net
Photo courtesy of CommunicationsEngineering, Inc (CEI)
Annual Report 200029
Contribution and Distribution
MobileContribution
The mobile contribution market is aimed almost
exclusively at getting live, digital pictures from
unique events back to a network or platform that
can distribute the acquired material to a larger
number of reception sites. Therefore, by default,
the largest markets that use mobile contribution
systems are news, sports and special events.
TANDBERG Television was the first company to
bring Digital Satellite News Gathering (DSNG)
solutions to market in 1995 and has been market
leader by some considerable distance since the
first units were sold. With the digitisation of
broadcasting, TANDBERG Television has found a
willing market for its mobile contribution products
and enjoyed return business from its original
analogue customers who are aiming to produce
digital content directly from their outside
broadcast events. Furthermore, the news and
sports markets have been growing steadily as
more and more channels become available to the
digital television consumer. Demand for live news
and sports coverage shows no sign of slowing
down and demand for TANDBERG Television’s
mobile contribution encoders (MCEs) has risen
accordingly. Furthermore, in recent years as the
thirst for live news coverage from ever more exotic
locations has increased, TANDBERG Television has
responded to this demand by bringing down the
size of its MCEs, whilst at the same time
increasing the functionality. This is particularly
important given the market’s increasing use of
aircraft transportable DSNGs (or “fly aways”).
TANDBERG Television has also invented a solution
that has revolutionised terrestrial microwave
based transmissions (commonly known as
“links”). This technology is known as D-ENG
(Digital Electronic News Gathering) and is based
on the original R&D work carried out by
TANDBERG Television to create modulation
schemes for digital terrestrial TV. The core
advantage of this system is that it has removed
the need for “line of sight transmissions”.
Currently, the industry standard method of
sending live pictures from one point to another
involves exacting parameters. These include
criteria such as the transmitter point must be able
to “see” the receiver. Anything blocking the
transmission path such as a building, mountain or
atmospherics inevitably cause interference and
the subsequent loss of transmission.
TANDBERG Television has virtually eliminated the
historical problems associated with live links and
the results have successfully demonstrated that
pictures can even be transmitted whilst on the
move, with no break up. Upon being launched to
the market during 2000, D-ENG received a
number of technical innovation awards from well-
respected industry bodies and magazines. IBC
2000 featured the E6100 helicopter based D-ENG
as its opening product to launch the exhibition.
Innovation is key in the mobile contribution
segment as broadcasters and newsgatherers
battle to be first with the news and to provide
compelling outside broadcast and live
programming. TANDBERG Television’s commitment
to technical innovation and market leading
solutions shows every sign of enabling the
company to increase its market share even further.
TANDBERG Television’s Digital Electronic News
Gathering (D-ENG) solution achieved a world first
in September 2000, by broadcasting live pictures
over a distance of over 600km from a Lufthansa
Airbus cruising at 8,000m at a speed of 840km/h.
AVS, a German broadcast specialist, deployed the
ENG systems with the cooperation of Lufthansa
Technik engineers, using TANDBERG Television’s
transmission and receiving solutions alongside
AVS’ own microwave transmission equipment.
During a test flight from Hamburg to Frankfurt, a
camera crew onboard the aircraft filmed VIP
passengers as it made its flight across Germany.
Both the video and audio received were of high
quality, with no picture ghosting and multi-
pathing - issues most commonly associated with
mobile broadcasting.
Enabling airlines to broadcast live reports from
airborne flights opens up a whole new world of
broadcasting opportunities. For example, airlines
can broadcast live reports while on the move,
which would be very valuable from a security
perspective and in the event of a disturbance on
board would enable ground support staff to know
exactly what is happening, as it happens. Service
enhancing and income generating devices, such
as videophones, can be introduced for passenger
and crew use and in-flight entertainment can be
enhanced with live news and events transmitted
from the ground. Moreover, TV programme
makers can include live footage from the air into
their programmes, ideal for fly-on-the wall
‘DocuSoaps’ and great for airborne news reports
and interviews.
TANDBERG Television works withleading mobile contributioncompanies around the world,including:
• Asia Pacific Broadcast Union (ABU)• BBC• CBC• Deutsche Telekom• European Broadcast Union (EBU)• FOX• NBC
“TANDBERG Television’s D-ENG technology has already been proven with moving
vehicles such as cars, buses, trams, boats, helicopters, and from motorbikes
travelling through long tunnels. Now, the addition of delivering live materials from
the sky confirms that this is the most robust way of delivering high quality footage
on the move.”
Reinhard Kuhn, Managing Director of AVS.
04 Case study:
TANDBERG Television takes to the skies
Germany
Annual Report 2000 30
Annual Report 200031
Delivering the digital future
There is no doubt that the turn of the new millennium also saw
the beginnings of a transformation to the content delivery
industry. AOL’s acquisition of Time-Warner indicated the future
direction of Internet service operators and was a timely reminder
of the essential symbiotic connection between content and
delivery. Many broadcasters invested heavily in the Internet, and
new infrastructure was rolled out to deliver both broadcast and
Internet content with the accessibility of the Internet and the
reliability and performance of broadcasting. Alongside this, more
digital television systems were rolled out than ever before. For
both TANDBERG Television and our customers, 2000 was a year
for developing new opportunities within a complex, dynamic
market place.
While the growth of digital broadcast platforms, such as cable,
satellite and terrestrial has increased the scope of TV, the
television set is no longer the only mass-market receiver of
broadcast content. New routes to the consumer, such as IP and
broadband, coupled with devices such as the PC and PDA
(personal digital assistant), have widened the opportunities for
content delivery, while at the same time adding new degrees
of complexity to the transmission of video, audio and data.
Clearly, more digital platforms, channels and a wider spread of
devices means increased demand for content. And competition
between those platforms, channels and devices leads to
increased demand for highly differentiated content; for example
live and timely content for news and event coverage, and
differentiated service offerings such as interactivity. In terms
of broadcast systems demand, this translates to increased
gathering of content, increased exchange and re-use of content,
and increased complexity of delivery solutions to meet the new
interactive service requirements. In addition, advances in
infrastructure technology have led to whole new delivery paths
over which valuable content and services can be offered.
The bottom line opportunity for TANDBERG Television is in the
growing requirement for professional solutions to enable the
collection and delivery of content across multiple platforms to
multiple devices. As new infrastructure is built to distribute
content and deliver new services such as interactive TV, there is a
technology demand for highly cost effective, integrated solutions
that can seamlessly handle the complexities of multi-platform
delivery. Moreover, the need to create once, distribute
everywhere (CODE) has created a market for solutions which
bridge the broadcast and broadband worlds.
During 2000, we leveraged our technology and R&D skills to set
the pace with a number of key technology innovations. Three
key highlights included:
• The launch of the world’s first broadcast distribution system
using IP networks. These systems have already been deployed
in some of the world’s first trials and we have worked with
organisations, such as Telenor, to demonstrate the reality of
IP broadcast services;
• The continuing deployment of our world leading Radio
Frequency (RF) technology expertise, already used in digital
terrestrial TV systems around the world, to produce innovative
solutions for Digital Electronic News Gathering and explore
new opportunities in broadband wireless access markets;
• The development of new innovations to add-value in our
traditional MPEG-2 broadcast segments, with new applications
for increasing bandwidth efficiency and managing large-scale
broadcast systems.
Broadcasters and content providers alike have recognised that in
order to maintain the upper hand in this new multi-platform
world, they need to establish strong technology partnerships and
to use delivery innovation to their best advantage. We believe
that TANDBERG Television is well placed to continue to meet the
needs of our traditional broadcast customers, as well as deliver
attractive solutions for the emerging new media markets.
Looking Forward
Annual Report 2000
Our strong broadcast experience and scalable broadcast systems
expertise fits solidly within the convergence between the IP and
broadcast industries, enabling the delivery of digital content.
Our experience of building sophisticated solutions for the most
challenging digital delivery mechanisms to date - those used
for Television - provides us with a great advantage in providing
solutions for interactivity and the emerging multi-platform
environment of IP/broadband markets.
Our core strategy of offering customer choice through open and
versatile solutions has paid off and positioned us as one of the
preferred suppliers in all our operating segments. In addition, our
capability as innovators has meant that we are the first port of call
for solutions to the challenges of the new market environment.
Across our core business segments we continue our commitment
to total solution provision, which we have extended through the
formation of a number of significant alliances, with companies such
as Cisco, Logic Innovations and SkyStream. Looking forward we
aim to continue the in-roads we have made into broadband and
wireless markets whilst expanding our systems capability. The
new products we are launching in 2001 will keep us at the forefront
of technical innovation and strengthen our focus on end-to-end
system solutions. We anticipate building new relationships,
which increase our solutions offering and extend our global
market presence.
Underlying this will be our continued commitment to new
technology development and to our award winning R&D
operation. We have the advantage of employing some of the
brightest brains in digital broadcasting and media delivery in
the world. We will continue to invest in this knowledge capital
to create cutting-edge solutions to enable the new media age,
just as we have transformed the world of broadcasting over
the past ten years.
Jeremy Thorp, Chief Technology Officer
32
TANDBERG Television ASA and
TANDBERG Television Systems AS
Philip Pedersens vei 20PO Box 3321326 LysakerNorway
Tel. + 47 67 116 200Fax. + 47 67 116 201
TANDBERG Television Ltd
Strategic ParkComines WayHedge EndSouthampton SO30 4DAUnited Kingdom
Tel. + 44 2380 484 000Fax. + 44 2380 484 203
TANDBERG Television Inc
12633 Challenger ParkwaySuite 250OrlandoFL 32826USA
Tel. + 1 407 380 7055Fax. + 1 407 380 6691
TANDBERG Television Ltd
901-903 Tower 11 Lippo Centre89 QueenswayAdmiraltyHong Kong
Tel. + 852 2899 7000Fax. + 852 2899 7100
TANDBERG Television Pty Ltd
Level 6Westfield Tower100 William StreetEast SydneyNSW 2011Australia
Tel. + 61 2 9356 8599Fax. + 61 2 9356 8566
TANDBERG Television GmbH
Freisinger Strasse No 185737 IsmaningGermany
Tel. + 49 89 96 999870 Fax. + 49 89 96 999888
For further investor information,please contact
email: investor@tandbergtv.com
Web site: www.tandbergtv.com
TANDBERGTelevision
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