There has been a material change in Tandberg’s tax position. According to the digital TV technology vendor, its after tax profit in 2006 amounted to $82.9 million (€63.1 million ), as opposed to the $55.6 million reported on February 8 and $47.8 million in 2005.
While there has been no actual change to the company’s operating profit, the discrepancy is accounted for by “a number of actions [the board implemented in 2006] that have resulted in improved utilization of prior year losses in a number of the operating companies”. This generated a net tax credit for the year of $16.4 million, compared with the tax expense of $12.0 million previously reported.
Tandberg’s Total revenue amounted to $350.3 million, with a gross margin of 57.8%. Its operating
expenses were $128.7 million, and depreciation and amortization for 2006 amounted to $18.6 million, resulting in an operating profit of $55.2 million. Income from net financial items came to $11.3 million and included $5.9 million from associates disclosed below pre-tax profit in the interim release of February 8, 2007. Pre-tax profit was consequently $66.5 million, and net profit after taxes grew to $82.9 million.
Tandberg’s Boardmembers and management also accepted Ericsson’s SEK9.8 billion (€1.05 billion), 106 NOK/share offer today and tendered their acceptance for their personally held share, the only exception being Arne Jensen.
The number of shares each board member hold varies from Karen Woodford’s 800 shares to CEO/President Eric Cooney’s 155,000.
Ericsson’s NOK 106 per share cash offer, which was set to expire this afternoon at 16.30 hours CET, Tuesday March 13, has been extended to 16.30 hours CET on Friday March 16. The annual shareholders meeting has been postponed until March 30.