Stockholm, Sweden - 23 February 2012 - Transmode, a global supplier of packet optical networking solutions, today announced its Year-End Report 2011.

October – December 2011

• Sales were SEK 246.4 (200.4) m, corresponding to an increase of 22.9% and by 24.2% adjusted for exchange rate fluctuations.
• Operating profit was SEK 44.8 (25. m and operating margin was 18.2% (12.9%). Adjusted operating profit was SEK 45.2 (26.6) m and adjusted operating margin was 18.3% (13.2%).
• The adjustment is for expenses of SEK 0.4 (0. m relating to Transmode’s IPO on NASDAQ OMX Stockholm.
• Net profit was SEK 34.2 (19.7) m.
• Earnings per share after dilution were SEK 1.23 (0.77*).
• Cash flow from operating activities was SEK 88.5 (49.3) m.
• The company announced new contracts with upc cablecom of Switzerland and Surf Telecom of the UK.

January – December 2011 

• Sales were SEK 916.9 (699.3) m, corresponding to an increase of 31.1% and by 38.4% adjusted for exchange rate fluctuations.
• Operating profit was SEK 149.1 (107.6) m and operating margin was 16.3% (15.4%). Adjusted operating profit was SEK 168.2 (108.4) m and adjusted operating margin was 18.3% (15.5%).
• The adjustment is for expenses of SEK 19.1 (0. m relating to Transmode’s IPO on NASDAQ OMX Stockholm.
• Net profit was SEK 116.3 (81.4) m.
• Earnings per share after dilution were SEK 4.26 (3.21*).
• Cash flow from operating activities was SEK 139.4 (133.6) m.
• After the end of the reporting period, the Board of Directors decided to propose a dividend of SEK 1.50 per share.

* Earnings per share after dilution have been restated for 2010.

"A strong final quarter with a 23% year on year sales growth closes a fantastic 2011. For the full year, we have achieved our financial objectives with sales growth of 38% in local currencies and an adjusted operating margin of 18%. To the summary of 2011, we can also add the introduction of new innovative products for Ethernet transport and 100Gbit/s per wavelength and new business in mobile backhaul and video distribution networks. We also secured a number of new accounts, conducted our IPO and relocated to new premises. Overall, 2011 was another highly successful year for Transmode when we advanced our positioning. I am looking forward to continuing to develop Transmode in 2012."
Karl Thedéen
Chief Executive Officer

The Year-End 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 press and analysts’ conference (in English) at Operaterassen, Stockholm, Sweden, for the media, investors and analysts on 23 February at 09:00 CET. Karl Thedéen, CEO and Tomas Kihlstrand, CFO will present and comment on Transmode’s Year-End Report.

Notifications of participation should be addressed to [email protected]. The conference will also be streamed live on the Internet at http://www.financialhearings.com/ and http://www.transmode.com/.

Participate in the conference call on +46 (0)8 505 59875 or +44 (0)207 108 6303 a few minutes before the scheduled start.

The Interim Report along with historical quarterly data is also available on the Transmode website at http://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 23rd February 2012.