2000 Annual Report (Figures) Eng

8/9/2019 2000 Annual Report (Figures) Eng

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Amount in SEK thousands NOTE 2000 1999

Ongoing operations

Operating earnings -218,134 -114,469Depreciation 747 620

Other items not affecting liquidity 1,242 -10

Interest received 5 8,136 1,897Interest paid 6 -8 -33

Cash flow from ongoing operations -208,017 -111,995before change in working capital

Change in working capitalDecrease/increase in inventories 8,452 -19,155

Increase in receivables -8,469 -5,895

Increase in current liabilities 6,173 16,022

Cash flow from ongoing operations -201,861 -121,023

INVESTMENT ACTIVITYAcquisitions of tangible fixed assets -911 -969

Cash flow from investment activity -911 -969

FINANCING ACTIVITYWarrants programs/new issues 253,750 218,606

Cash flow from financing activity 253,750 218,606

Increase in liquid funds 15 50,978 96,614

Liquid funds, opening balance 15 125,026 28,412

Liquid funds, closing balance 176,004 125,026

ConsolidatedCash Flow Statement


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26

Amount in SEK thousands NOTE 31 Dec 2000 31 Dec 1999

ASSETSTangible fixed assets 7 2,011 1,846

Total tangible fixed assets 2,011 1,846

Financial fixed assetsShares in group companies 500 0

Total financial assets 8 500 0

Work in progress 7,502 15,893

Finished goods 3,201 3,262

Customer receivables 4,024 732

Receivables, subsidiaries 20,697 5,659

Other receivables 10,503 5,570

Prepaid expenses and accrued income 9 3,616 3,277

Cash and bank balances 172,654 124,619

Total current assets 222,197 159,012Total assets 224,708 160,858

LIABILITIES AND SHAREHOLDERS' EQUITYShareholders' equity 10Restricted equity

Share capital 11 1,572 1,402

Share premium reserve 396,859 334,515

Accumulated deficit

Brought forward deficit 0 -82,589Net earnings -202,766 -115,464

Total shareholders' equity 195,665 137,864

Current liabilitiesAccounts payable 17,791 15,971

Other liabilities 2,829 1,816

Accrued expenses 12 8,423 5,207

Total liabilities 29,043 22,994Total liabilities and shareholders' equity 224,708 160,858

Pledged assets None NoneContingent liabilities None None

Parent company

Balance Sheet

Parent companyIncome Statement

1 Jan 2000- 1 Jan 1999-Amount in SEK thousands NOTE 31 Dec 2000 31 Dec 1999

Net sales 1 9,182 2,867

Cost of goods sold -6,126 -2,531Gross earnings 3,056 336Marketing expenses 2,4 -39,951 -18,610

Administration expenses 2,4,14 -46,281 -24,502

Development expenses 2,3,4 -128,932 -74,700

Operating earnings -212,108 -117,476Other interest income and similar items 5 9,350 2,045

Interest expenses 6 -8 -33

Earnings before tax -202,766 -115,464Tax - -

Net earnings -202,766 -115,464


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Amount in SEK thousands NOTE 2000 1999

Ongoing operations

Operating earnings -212,108 -117,476Depreciation 747 620

Other items not affecting liquidity 1,242 166

Interest received 5 8,108 1,879

Interest paid 6 -8 -33

Cash flow from ongoing operations -202,019 -114,844before change in working capital

Change in working capitalDecrease/increase in inventories 8,452 -19,155

Increase in receivables -23,602 -11,460

Increase in current liabilities 6,048 15,894

Cash flow from ongoing operations -211,121 -129,565

Investment activityAcquisitions of financial fixed assets -500 0

Acquisitions of tangible fixed assets -911 -969

Cash flow from investment activity -1,411 -969

Financing activityWarrants programs/new issues 260,567 226,741

Cash flow from financing activity 260,567 226,741

Increase in liquid funds 15 48,035 96,207

Liquid funds, opening balance 15 124,619 28,412

Liquid funds, closing balance 172,654 124,619

Parent companyCash Flow Statement


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28

GENERAL ACCOUNTING PRINCIPLES

The accounting principles applied comply with the AnnualAccounts Act and are consistent with the recommendationsand statements of the Swedish Accounting Standards Board,the Swedish Financial Accounting Standards Council andthe Swedish Institute of Authorized Public Accountants.

THE CONSOLIDATED ACCOUNTS

The consolidated accounts include two wholly-owned sub-sidiaries of the parent company. The consolidated accountshave been prepared using the acquisition accounting methodand in accordance with recommendation no. 1 of theSwedish Financial Accounting Standards Council.

Net Insight AB applies the current method for consolida-

tion of the subsidiaries financial accounts. This implies thatthe subsidiaries assets and liabilities are translated at theexchange rate prevailing on the balance sheet date. Allincome statement items have been translated at the averageexchange rate for the year. Translation differences arecharged directly to the consolidated shareholders equity.

VALUATION PRINCIPLES, ETC.

Assets, provisions and liabilities have been valued at acquisi-tion value unless otherwise indicated below.

DEVELOPMENT EXPENSES

Expenses related to development initiatives are posted asthey occur.

RECEIVABLES

Receivables have been included at the amount at which theyare expected to be received on the basis of a case-by-caseassessment.

FOREIGN CURRENCY RECEIVABLES AND LIABILITIES

Foreign currency receivables and liabilities have been trans-lated at the exchange rate prevailing on the balance sheetdate.

INVENTORIESInventories have been valued at the lower of acquisitionvalue and market value as at the balance sheet date.

DEPRECIATION PRINCIPLES FOR FIXED ASSETS

Depreciation according to plan is based on original acquisi-tion values and estimated financial life-span. Write-downs areeffected where a decline in value is assessed to be permanent.

THE FOLLOWING DEPRECIATION PERIODS HAVE BEEN

APPLIED:Tangible fixed assets

Equipment, tools and installations 5 years

NOTES

(all amounts are in SEK thousands unless stated otherwise)

NOTE 1

NET SALES

Net Insights revenue largely comprises fixed-fee projectscharged directly to expenses and relates exclusively to theparent company for the year in question. The projects arecharged to expenses in conjunction with customers accept-

ance of delivery. When charging the projects to expenses,expected outstanding revenue is also take into account andprovisions are made for estimated outstanding expenses.

NOTE 2

HUMAN RESOURCES AND PERSONNEL EXPENSES

Average no. of employees of which men

Sweden 100 persons (63) 77% (86%)

USA 3 persons (2) 100% (100%)

The number of employees has increased steadily during theyear, amounting at year-end to 122 (76) in the parent com-pany and 2 (5) in the subsidiary.

Salary, remuneration and social security expenses

in respect of the Board, CEO and other employees

2000 1999

Salary Social Salary and Social

and security remune- security

Group remuneration expenses ration expenses

Board, CEO 2,180 1,334 2,021 1,033

(of which pension exp.) 617 - 364

Other employees 51,263 20,539 29,761 11,590

(of which pension exp.) - 5,320 - 2,217

Total 53,443 21,873 31,782 12,623

(of which pension exp.) - 5,937 - 2,581

Parent companyBoard, CEO 2,180 1,334 2,021 1,033

(of which pension exp.) 617 - 364

Other employees 46,107 20,380 27,720 11,434

(of which pension exp.) 5,004 - 2,217

Total 48,287 21,714 29,741 12,467


By market

Parent company 48,287 21,714 29,741 12,434


Subsidiary abroad 5,156 316 2,041 156

(of which pension exp.) - - -

Accounting principlesand notes

to the accounts


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Bengt Olsson has a guaranteed period of employment of

15 months, the last six months of which are conditional inthe event of new employment. The companys pensioncommitment towards CEO Bengt Olsson comprises the

ITP plan (supplementary pensions for salaried employees)

plus two basic amounts yearly. An additional amount of

SEK 200,000 was reserved for old age pensions.

Board member Lars Gauffin, one of the companysfounders, received SEK 705,000 (659,000) in salary from

the company. The remuneration payable to the board

amounts to a total of SEK 600,000.

NOTE 3

DEVELOPMENT EXPENSES

Development expenses primarily comprise expenses related to

product development, computer purchases, patent applica-

tions, licenses and salary expenses for personnel involved in

development work.

NOTE 4

DEPRECIATION OF TANGIBLE FIXED ASSETS

Dotterbolaget saknar materiella anlggningstillgngar

Parent company 31 Dec 2000 31 Dec 1999

Equipment, tools

and installations 747 620

747 620

NOTE 5

INTEREST INCOME AND SIMILAR ITEMS

Group Parent company

2000 1999 2000 1999

Interest income 8,136 1,898 8,108 1,879

Exchange rate differences 1,242 166 1,242 166

9,378 2,064 9,350 2,045

NOTE 6

INTEREST EXPENSE AND SIMILAR ITEMS


2000 1999 2000 1999

Interest expenses -8 -33 -8 -33

NOTE 7

EQUIPMENT, TOOLS AND INSTALLATIONSThe subsidiary does not have any equipment.

Parent company and Group 31 Dec 2000 31 Dec 1999

Accumulated acquisition value

Opening balance 3,100 2,131

Purchases 911 969

Total 4,011 3,100

Accumulated depreciation according to plan

Opening balance -1,254 -634

Values for the year - 747 -620

Total -2,000 -1,254

Residual value according to plan

at year-end 2,011 1,846

NOTE 8

SHARES IN GROUP COMPANIES

Proportion Proportion Number Book

of capital of votes of shares value

Net Insight Inc. 100% 100% 1,000 0.08

Registered office:

Delaware, USA

Net Insight Consulting AB 100% 100% 5,000 500

Corporate ID number: 556583-7365

Registered office: Stockholm, Sweden

NOTE 9

PREPAID EXPENSES AND ACCRUED INCOME

Prepaid expenses and accrued income include the following

major items:


001231 991231 001231 991231

Premises rental for first

quarter 2001(2000) 1,177 861 1,177 861

Prepaid consultancy

expenses - 360 - 360

Prepaid license/service

charges 468 952 468 952

Prepaid insurance expenses 831 394 831 394

Accrued interest income 358 - 358 -

Other items 782 804 782 710

Total 3,616 3,371 3,616 3,277


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30

NOTE 11

SHARE CAPITAL

The share capital is distributed over 39,289,300 shares with

a nominal value of SEK 0.04 per share. An A-series share

entitles the owner to ten (10) votes and a B-series share to

one (1) vote. The structure is as follows:

No. of shares Options

Unrestricted A-series shares 3,600,000

Unrestricted B-series shares 35,689,300

Subscription options 2000/2007 435,000Subscription options III (9/3/99) 300,000

Total 39,289,300 735,000

NOTE 12

ACCRUED EXPENSES

Accrued expenses include the following major items:


001231 991231 001231 991231

Holiday pay liability 2,525 1,630 2,525 1,630

Social security expenses 1,460 880 1,460 880

Accrued bonuses 3,032 637 3,032 637

Accrued consultancy

expenses 1,135 1,535 1,135 1,535

Other items 524 653 271 525Total 8,676 5,335 8,423 5,207

NOTE 13

RENTAL EXPENSES

Future rental expenses amount to SEK 8,039,000 for 20012002. Current rental expenses run until 30 September 2002.

NOTE 14

FEES AND REMUNERATION

Remuneration of SEK 90,000 has been paid to accountants

hrlings PricewaterhouseCoopers AB for auditing servicesand SEK 86,000 for other services.

NOTE 15

CASH FLOW STATEMENT

The opening and closing balances of liquid funds relate to

cash and bank balances for both years. Of the total liquid

funds in the group for 2000, SEK 3,350,000 are related to

liquid funds in the subsidiary.

NOTE 10

SHAREHOLDERS EQUITY

Share Restricted Non-restricted Net Total share-

GROUP capital reserves reserves earnings holders equity

Opening balance 1,402 326,203 -82,589 -112,438 132,578

Reallocation of net earnings -198,053 85,615 112,438

New issues 113 224,122 224,235Warrants programs 57 30,510 30,567

Translation difference for year -1,051 -1,051

Net earnings for year -208,764 -208 764

Closing balance 1,572 381,731 3,026 -208,764 177,565

Share Share premium Accumulated Net Total share-

PARENT COMPANY capital reserve deficit earnings holders equity

Opening balance 1,402 334,515 82,589 -115,464 137,864

Reallocation of net earnings -198,053 82,589 115,464 -

New share issues 113 229,887 230,000

Warrants programs 57 30,510 30,567

Net earnings for year -202,766 -202,766

Closing balance 1,572 396,859 - -202,766 195,665

Share issue expenses for the year have been charged to the income statement, while those for the group have been chargeddirectly to restricted reserves.

Stockholm, 2 February 2001

Lars Berg Bengt Olssonchairman chief execut ive off icer

Bernt Magnusson Lars Gauf fin Hkan Kihlberg Bo Dimert Lage Jonason


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To the Annual General Meeting ofNet Insight AB (publ)

Corporate ID number 56533-4397

We have audited the annual accounts, the consolidated accounts, the accounting records

and the administration of the board of directors and the chief executive officer of Net

Insight AB (publ) for the financial year 2000. These accounts and the administration of

the company are the responsibility of the board of directors and the chief executive officer.

Our responsibility is to express an opinion of the annual accounts, the consolidated

accounts, the accounting records and the administration on the basis of our audit.

We conducted our audit in accordance with generally accepted auditing standards in

Sweden. These standards require that we plan and perform the audit to obtain reasonableassurance that the annual accounts and the consolidated accounts are free of material mis-

statement. An audit includes examining, on a test basis, evidence supporting the amounts

and disclosures in the accounts. An audit also includes an assessment of the accounting

principles used and their application by the board of directors and the chief executive offi-

cer, as well as an evaluation of the overall presentation of the information in the annual

accounts and the consolidated accounts. We examined significant decisions, actions taken

and circumstances of the company in order to be able to determine the liability, if any, to

the company of any board member or the chief executive officer and whether they have in

any other way acted in contravention of the Companies Act, the Annual Accounts Act or

the Articles of Association. We believe that our audit provides a reasonable basis for our

opinions set out below.The annual accounts and the consolidated accounts have been prepared in accordance

with the Annual Accounts Act, and, consequently, give a true and fair view of the financial

position of the company and the group in accordance with generally accepted auditing

standards in Sweden.

We recommend that the income statements and the balance sheets of the parent com-

pany and the group be adopted by the AGM, that the deficit incurred by the parent com-

pany be dealt with in accordance with the proposal in the administration report, and that

the members of the board and the chief executive officer be discharged from liability for

the financial year.

Stockholm, 5 February 2001

Marcus Johansson Bertil Johansonauthorized public accountant authorized public accountant

Reportofthe auditors


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32

Net Insight Managementand Senior Executives

Management group


9/16

BENGT OLSSON - ChiefExecutive Officer

Born in 1943. Bengt Olsson was

previously a senior executivewith IBM, Gadelius, Kebo,

Digital and Dow Jones.

Shareholding in Net Insight: 98 330

B-shares and 10 000 staff options.

MITUL SAWJANI - VP Supply

& Strategic AlliancesBorn in 1971. Mitul Sawjani

has worked on issues related to

Purchasing/Logistics at theEricsson group since 1997. His

latest position was Purchasing

Manager with Ericsson Inc. in

Lynchburg, USA

Shareholding in Net Insight:40 000 staff options.

LARS GAUFFIN - SeniorAdvisor (founder)

Born in 1943. Lars Gauffin has

professional experience fromEricsson, Telia and KTH (The

Royal Institute of Technology,

Stockholm), within telecom,datacom and distributed sys-tems. He headed up the DTM

project at KTH.

Shareholding in Net Insight:

1 200 000 A-shares and

1 522 150 B-aktier.

PER LINDGREN - VP Business

Development (founder)Born in 1967. PhD in

Teleinformatics from KTH (The

Royal Institute of Technology,Stockholm), 1996. Per Lindgren

was previously AssistantProfessor at KTH, where he

worked on refinement of theDTM technology.

Shareholding in Net Insight:

1 200 000 A-shares, 877 940 B-

shares and 10 000 staff options.

MAGNUS STLBRANDT

- VP SalesBorn in 1961. Magnus

Stlbrandt was formerly CEOand Nordic VP of Xylan Nordic

1997-1999, and M anagerProduct Marketing at IBM

Nordic 1994-1997.

Shareholding in Net Insight: 10 000staff options and 20 000 subscrip-tion options*.

JOHN KOSTAK - VP GlobalMarketing

Born in 1961. Most recent post:

VP Sales and Marketing forDynarc AB, 1998-2000. Has

previously established andworked for the companies called

Quallaby and St Clair Systems,and held several leading posi-

tions at Nortel Networks, Net

Manage, Fujikura, and othercompanies.

Shareholding in Net Insight: 50 000staff options.

CHRISTER BOHM - ChiefTechnical Officer (founder)

Born in 1966. PhD in Tele-

informatics from KTH (The

Royal Institute of Technology,Stockholm). Christer Bohm was

previously Assistant Professor at

KTH, where he participated inthe DTM project. He has also

been involved in several other

distributed multimedia and high-speed communication projects.

Shareholding in Net Insight:1 200000 A-shares, 1 151655 B-shares and 10 000 staff options.

CAROLEN YTANDER - VP

Corporate CommunicationsBorn in 1964. Carolen Ytander

was Information Manager with

Telia InfoMedia TeleVision1997-1999 and also held a simi-lar post with Sparbanken Sverige

1995-1997.

Shareholding in Net Insight:40 000 staff options.

LARS BORGWING - President

and COO, Net Insight Inc.Born in 1953. Lars Borgwing

has over 20 yearsexperience

from leading positions in theAmerican market. Has estab-lished and worked as a CEO

and consultant for several distin-

guished companies likeGoldman Sachs, GE Capital,

Chase, Svenska Handelsbanken

and Merita NordBanken.

Shareholding in Net Insight: 50 000staff options.

CARL-JOHAN BLOMBERG

- Chief Financial OfficerBorn in 1952. Carl-Johan

Blomberg served most recently

as Senior VP and CFO atHotellus International AB. He

previously held senior financial

positions at Pharmacia,

Procordia and Alfa Laval.

Shareholding in Net Insight: 3 000 B-aktier and 50000 staff options.

HELN LINDQVIST

- VP Finance

Born in 1958. Heln Lindqvistserved as an auditor with ArthurAndersson & Co from 1986 to

1994. She became an authorizedpublic accountant in 1989.

From 1994 to 1998, she was thefinancial manager with a

Swedish subsidiary of a multi-

national group.

Shareholding in Net Insight: 800 B-shares, 10 000 staff options and20 000 subscription options*.

ANDERS PERSSON - VPProduct DevelopmentBorn in 1957. Anders Perssonhas many years of experiencewith the Ericsson group, wherehis latest position was General

Manager for Network Design atERA, Ericsson Services. Prior tothat he was Project Manager atERA, Customer Services, andVP with EUR, Ericsson FiberAccess.

Shareholding in Net Insight: 4 000B-shares and 50000 staff options.

BIRGITTA HEDBLOM - VP

Human ResourcesBorn in 1950. Birgitta Hedblom

previously held a number of

senior Human Resources posi-tions at Hewlett Packard.

Previously, Birgitta has acted asa self-employed human

resources development consult-ant with a number of major cor-

porate clients.

Shareholding in Net Insight: 500B-shares and 40 000 staff options.

* Every option entitles theholder to 5.45 shares


10/16

34

Net Insight Managementand Senior Executives

The Board


11/16

BENGT OLSSON - CEO and

board memberBorn in 1943. Previously a

senior executive with IBM ,

Gadelius, Kebo, Digital and

Dow Jones.

Shareholding in Net Insight: 98 330B-shares and 10 000 staff options.

HKAN KIHLBERG

- Board memberBorn in 1939. CEO Pressens

Bild, Bonnier. Chairman of the

board of Ad Libris AB; member

of the boards of BonnierAffrsinformation AB, PressensBild and International

Electronic Publishing ResearchCenter (IEPRC).

Shareholding in Net Insight: 4 430B-shares

LARS BERG

- Chairman of the BoardBorn in 1947. Independent

investor and consultant.

Member of the boards ofTelefonica Mobiles, Eniro,

Ratos, C.Technologies,Ledstiernan and Genesis-IT and

several other companies in thetelecom industry.


BO DIMERT - Board member

Born in 1943. Most recentlyCEO of Ericssons activity in theUSA. Chairman of the board of

ipUnplugged, member of theboards of Sverige-Amerika-

stiftelsen and Razorfish Inc.,USA.


LAGE JONASON

- Board memberBorn in 1951. CEO Nordiska

Holding AB and Nordiska

Fondkommission AB. Memberof the board of City Mail AB.

Shareholding in Net Insight:300 000 B-shares

CHRISTER BOHM - Deputyboard member, Chief TechnicalOfficer and founderBorn in 1966. PhD in Tele-informatics from KTH (TheRoyal Institute of Technology,Stockholm). Was previouslyAssistant Professor at KTH,where he participated in theDTM project. He has also beeninvolved in several other distri-buted multimedia and high-speed communication projects.

Shareholding in Net Insight:1 200000 A-shares, 1 151655 B-shares and 10 000 staff options.

BERNT MAGNUSSON

- Deputy Chairman of the BoardBorn in 1941. Chairman of the

boards of Swedish Match AB,

AssiDomn AB and Dyno NobelASA; member of the boards of

AvestaPolarit, Hgans AB,Emtunga International AB,

Sveriges Industrifrbund, VolvoPersonvagnar, Nordea AB,

ArosMaizels Corporate Finance

and FrvaltningsaktiebolagetStattum.

Shareholding in Net Insight:374 980 B-shares

LARS GAUFFIN

- Board member and founder

Born in 1943. Senior Advisor.

Professional experience fromEricsson, Telia and KTH, with-

in telecom, datacom and distrib-

uted systems. He headed up the

DTM project at KTH.

Shareholding in Net Insight:1 200000 A-shares and 1 522150B-shares.


12/16

36

AGMThe Annual General Meeting will be held on Wednesday

28 March 2001 at 15:00 at Norra Latin in Stockholm,

Sweden. In order to participate in the AGM, shareholders

must have been entered on the stock ledger kept by the

Swedish Central Securities Depository, VPC AB by nolater than on 16 March 2001, and must have notified the

company of their intention to attend no later than 16:00

on 22 March 2001. Notification of intention to attend the

AGM can be made by letter to: Net Insight AB, Box 42093,

SE-126 50 Stockholm, Sweden; by telephone to:

+46 8 685 04 00; by fax to: +46 8 685 04 20; or by

e-mail to: [email protected].

DIVIDENDThe Board proposes that the AGM resolve that no divi-

dend be paid for the year.

FINANCIAL INFORMATION IN 2001Annual General Meeting 28 March 2001

Interim report January March 2 May 2001Interim report January June 20 August 2001Interim report January September 20 October 2001

Production: Hallvarsson & Halvarsson and Ahonk.

Photo: Stellan Herner. Flowers, graphic design: Leif bjrnsson.


13/16


14/16

Dictionary

ACCESS NETWORK That part of the public network closestto end users.

ADSL Asymmetrical Digital Subscriber Line. Technology forincreasing transmission capacity in copper wires up to 8 Mbps.

ASIC Application Specific Integrated Circuit. A customizedintegrated circuit.

ATM Asynchronous Transfer Mode. Standardized and packet-switched technology for data traffic.

BACKBONE NETWORK High-capacity network linkingtogether geographically remote areas or a number of smallernetworks within an area. Also known as transport network.

BANDWIDTH Popular expression for transmission capacity ina network. Measured in bits per second, bps.

BROADBAND NETWORK Network with extremely high capac-ity, at least 2 Mbps.

BROADCAST Transmission from a single sender to a largenumber of recipients.

CIRCUIT-SWITCHING Way of ensuring that data is transmittedin an even stream by making a connection all the way fromsender to recipient. When the transmission has been com-pleted the connection is broken.

CITY NETWORK A high-capacity network linking together anurban area. Often termed as a Metro Area Network (MAN).

DTM Dynamic synchronous Transfer Mode. A dynamic cir-cuit-switched technology developed by Net Insight, in whichit is fully possible to transmit data, telephony and movingpictures across the one and the same network.

DWDM Dense Wavelength Division Multiplexing. Technologyfor improving transmission speeds in fiber networks by concur-rently transmitting several light waves of different wavelengths.

ETHERNET The most common communication technologyfor local networks. Can cope with transmission speeds of10 Mbps.

ETSI European Telecommunications Standards Institute.European standardization commission.

GIGABIT ETHERNET Development of the Ethernet primarilyused in major LAN backbone networks. Can cope withtransmission speeds of 1000 Mbps.

IP Internet Protocol. Protocol used for data transmissionwithin the Internet. All traffic in the Internet is transmittedin IP packets.


15/16

ISP Internet Service Provider. Supplier of Internet services.

LAN Local Area Network. Smaller local networks within adepartment, building or block.

MSPP Multi Service Provisioning Platform. A platform thatcan cope with several different services in the form of data,telephony and moving pictures.

MULTICAST Transmission from a single sender to a numberof pre-defined recipients.

NODE Point in a network, where a sender/recipient or one ormore other networks can be connected.

OEM Original Equipment Manufacturer. Manufacturer ofequipment under its own name. The equipment may con-tain components from other manufacturers.

PACKET-SWITCHING Data is split into a number of smallerpackets that are sent through the network independently ofeach other. Once all the packets have reached the recipient,the original data unit is reconstituted.

PROTOCOL An agreed set of rules as to how the various itemsof network equipment should communicate with each other.

REAL TIME Immediate transmission of material withoutany delay.

ROUTER Used to route information between various networks

SDH/SONET Circuit-switched technology for communica-tion within backbone networks. SDH is the European stan-dard and SONET the US standard.

STREAMING STREAMED MEDIA Playback of sound and/ormoving pictures as it is downloaded.

STUDIO QUALITY Uncompressed raw material in the form ofsound and pictures from studio cameras and suchlike. Needsa transmission capacity of 270 Mbps.

SWITCH Used to direct information between different net-work users.

TCP Transmission Control Protocol. Protocol that, in con-junction with IP, forms the basis for communication via theInternet.

TDM Time Division Multiplexing. Technology for creatingmore channels in fiber cables, thereby increasing their capacity.

WAN Wide Area Network. Public network spanning largeareas, such as a city or a country, often with different typesof network connected to it.


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NET INSIGHT AB

Box 42093, SE-126 14 Stockholm, Sweden Visiting address: Vstberga All 9

P: +46-8-685 04 00, F: +46-8-685 04 20 [email protected]

NET INSIGHT, INC.

1050 Winter Street, Suite 1000, Waltham, MA 02451, USA

P: +1-781-890-0600, F: +1-781-890-0601 [email protected]

www.netinsight.net

Documents

2000 Annual Report (Figures) Eng