Tandberg's descendant, Pexip, has lost 160 million in five years, but in 2017 millions have finally found the right way – DN.no

The legacy of video conferencing giant Tandberg is enriching. In 2010, the Norwegian giant was sold to Cisco for $ 19 billion. Two years later, Pexip started with the old Tandberg, and now they are finally profitable after five years of heavy investment and a total loss of 160 million operating.

– It's really quite according to plan. We assume that we would spend 200 million NOK, says the president of Pexip and former head of the Nordic countries and Benelux countries in Tandberg, Kjell Skappel.

The company creates a meeting platform for videoconferencing that allows communication between technologies. They are one of only three vendors in the world with certification to connect to Microsoft solutions and have become the first company to integrate Google Hangout.

– We are working on this for 18 months and we have customers waiting for this, but it is too early to say what it will mean for the turnover, "says Skappel.

Very Good Margins

Pexip's accounts show that the company has grown significantly every year since its inception, but its operating losses have resulted in losses of about 40 million a year from 2013 to 2015 and 31.5 million less in 2016. But for 2017, we went to a surplus of $ 16.5 million, an improvement of $ 48 million.

"We sell software licenses through partners, so our production margin is 99%," says Skappel. says that the business model that they chose is demanding to start with, but provides a solid benefit, something that now turns out. Since they sell subscriptions, revenues do not come right away, like selling products.

– But once you have more licensing revenues than fixed costs, you get a very good opportunity for profitability or investment, "said Skappel, saying that the company can focus on growth rather than higher profits.

He says that the company loses few customers and that old customers generally increase the number of licenses over time, so that revenues from previous sales increase over time. Year after year, as a result, new sales are relatively lightly diluted on the bottom line.

Exceptions

At first glance, Pexip's figures for 2017 look a little blatant. The company's business has been drastically reduced, while labor costs have dropped by more than half, from NOK 69 million to NOK 31 million. According to Skappel, this is a good thing. explains to a large extent ie by the fact that last year, they were an exception to the underwriting model, accounting for 33 million revenue and labor costs of a supplier to deliver to the national oil company from Venezuela. income and it was 48 percent last year. This is the growth rate we are expecting this year, "Skappel said

A letter sent to shareholders shows that subscription revenues have almost tripled in two years from 50.6 million in 2015 to 143.4 million last year.He says that labor costs were also influenced by the fact that they stopped investing in Russia and in Latin America, now focusing on Northern Europe, the United States and parts of Asia

Pexip is the largest Tandberg heir on Norwegian soil. Tandberg picks Fredrik Halvorsen, Geir L. Olsen and Odd Johnny Winge built and sold Acano in London for $ 6 billion.

The neighborhoods of Pexip around Lysaker and Fornebu were dubbed "Video Valley" Here's the # 39 Cisco's Norwegian videoconferencing business, as well as many new business ventures. After the sale you will also find here Videxio, which increased from 50.4 to 68.6 million kroner in 2017 and increased the profit from three million to 10.8 million.

Norway also has a number of other companies in this area, which Synergy Sky and VideoNor. On the material side, Huddly has also raised hundreds of millions of dollars to develop an advanced videoconferencing camera that has received Google. (Terms)