<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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FORM 6-K
REPORT OF FOREIGN ISSUER
Rursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For 3Q-2000 results
NERA ASA
Kokstadveien 23, P.O. Box 7090
N-5020 BERGEN
Norway
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
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Indicate by ckeck mark whether the registrant by furnishing the
information continued in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes No X
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If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b):
<PAGE> 2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorised.
NERA ASA
By: Bjorn Ove Skjeie (sign.)
Name: Bjorn Ove Skjeie
Title: President and
Chief Operating Officer
Dated: October 31, 2000
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[NERA LOGO]
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NERA ASA
Postal Address
P.O. Box 7090, N-5020 BERGEN,
Norway,
Office Address
PRESS RELEASE, 31 October 2000 Kokstadveien 23, BERGEN, Norway,
Tel.No.: +47 55 22 51 00
Fax.No.: +47 55 22 52 99
Head Office
Nera ASA, 5020 BERGEN
Register of Business Enterprises
NO 944 536 949 MVA
< NERAY >
NERA AS OF SEPTEMBER 30, 2000
HIGH LEVEL OF ACTIVITY IN THE MARKETS.
FOCUS ON THE ABILITY TO DELIVER PRODUCTS.
NERA CONTINUED TO PROFIT FROM HIGH LEVELS OF ACTIVITY IN THE MARKETS AND
SUCCESSFUL SALES WORK IN THE THIRD QUARTER. THIS RESULTED IN A SOLID ORDER
INTAKE, WITH A NOTABLE 38 PERCENT HIGHER ORDER INTAKE IN TRANSMISSION NETWORKS,
LAYING A SOLID FOUNDATION FOR A SATISFACTORY GROWTH IN VOLUME ON AN ANNUAL BASIS
IN LINE WITH THE EXPECTATIONS THE COMPANY EARLIER HAS EXPRESSED. THIS WILL MEAN
A GROWTH OF ABOUT 20 PERCENT IN THE TRANSMISSION NETWORKS UNIT AND A SOMEWHAT
LOWER VOLUME IN THE SATELLITE COMMUNICATIONS UNIT COMPARED TO LAST YEAR.
<TABLE>
<CAPTION>
KEY FIGURES 3. QUARTER 2000*
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Amounts in 2000 as of 1999 as of September % change on 1999 1999 as of September
NOK million September 30th 30th restated 30th
Restated Ordinary
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<S> <C> <C> <C> <C>
REVENUES 1 707 1 559 10 % 2 029
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Operating income before
Wireless Broadband Access 138.8 85.2 63 % 110.2
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Operating income before
restructuring 80.9 85.2 -5 % 110.2
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INCOME BEFORE TAX 133.5 80.2 66 % 105.2
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Order intake 2 060 1 760 17 % 2 230
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* Column 2 shows the reported accounts for 1999 restated to eliminate
discontinued operations and non-recurring items. Column 4 shows the
reported accounts for 1999 adjusted for non-recurring items.
"The challenge in the fourth quarter and into the next year will be to show our
ability to handle growth," underlines CEO Bjorn Ove Skjeie. "The growth
potential for our businesses are greater than in a long time, and with a
targeted effort to increase delivery volumes our revenues will show a positive
trend after a quarter marked by seasonal variations and low production run rate
in the beginning of the period resulted in a somewhat lower delivery volume than
expected." He also emphasized the strengthened partnerships with international
players in the industry, Ericsson with several new contracts, the renewed
framework agreement with Lucent and the strategic partnership with ST
Microelectronics. "The management has focused on partnerships, alliances and
cooperation for some years, and we feel this is beginning to pay off."
<PAGE> 4
QUARTERLY RESULTS
<TABLE>
<CAPTION>
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3RD QUARTER 2ND QUARTER 1ST QUARTER 4TH QUARTER 3RD QUARTER 2ND QUARTER 1ST QUARTER
(Amounts in 1000 NOK) 2000 2000 2000 1999 1999 1999 1999
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<S> <C> <C> <C> <C> <C> <C> <C>
ORDERS RECEIVED 617,495 853,149 589,244 657,363 596,257 825,690 808,659
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SALES 543,990 548,476 614,564 736,891 635,820 679,599 713,467
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OPERATING INCOME
BEFORE RESTRUCTUR. 919 29,901 50,079 66,229 45,786 31,696 32,737
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INCOME BEFORE TAXES 30,337 40,488 62,670 86,914 153,060 29,775 27,052
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STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
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(Amounts in 1000 NOK) 01.01-30.09 01.01-30.09 YEAR
2000 1999 1999
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<S> <C> <C> <C>
Net income 97,707 146,831 207,578
Depreciation 36,680 43,958 58,667
Writedowns goodwill and financial non-current assets 1,700
Change in inventories, accounts receivable/payable and
other working capital items -155,134 272,268 332,603
Other adjustments to operating activities 33,617 -161,422 -206,051
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NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 12,870 301,635 394,497
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Capital expenditures 11,524 5,327 5,013
Proceeds from sales of property, plant and equipment -74,252 -45,280 -60,151
Other investments and sales 49,085 131,941 173,411
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NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES -13,643 91,988 118,273
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Proceeds from issuance of shares 857,479
Net change in own shares -10,930
Dividends paid -19,562
Net change in debt 5,174 -261,576 -257,273
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NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 832,161 -261,576 -257,273
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TRANSLATION DIFFERENCES 5,483 -5,011 -6,640
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NET CHANGE IN CASH AND CASH EQUIVALENTS 836,871 127,036 248,857
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 481,534 232,677 232,677
CASH AND CASH EQUIVALENTS AT END OF PERIOD 1,318,405 359,713 481,534
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</TABLE>
<PAGE> 5
INCOME STATEMENTS
<TABLE>
<CAPTION>
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(Amounts in NOK 1000) 01.01-30.09 01.01-30.09 YEAR 3RD QUARTER 3RD QUARTER
2000 1999 1999 2000 1999
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<S> <C> <C> <C> <C> <C>
ORDERS RECEIVED 2,059,888 2,230,607 2,887,967 617,495 596,257
SALES 1,707,030 2,028,886 2,765,777 543,990 635,820
Operating costs -1,391,614 -1,715,262 -2,314,276 -452,989 -527,697
Depreciation -36,680 -43,958 -58,667 -11,810 -13,763
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OPERATING INCOME BEFORE R&D 278,736 269,666 392,834 79,191 94,360
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Research and Development -197,837 -159,447 -216,386 -78,272 -48,574
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OPERATING INCOME BEFORE RESTRUCTURING
GAIN AND LOSS 80,899 110,219 176,448 919 45,786
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Restructuring gain and loss 104,700 112,807 104,700
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OPERATING INCOME 80,899 214,919 289,255 919 150,486
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Income from investment in associated comp. 16,345 5,602 12,098 5,477 5,112
Net financial income (expenses) 36,251 -10,634 -4,552 23,941 -2,538
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INCOME BEFORE TAXES 133,495 209,887 296,801 30,337 153,060
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Taxes -35,788 -63,056 -89,223 -4,482 -47,180
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NET INCOME 97,707 146,831 207,578 25,855 105,880
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</TABLE>
BALANCE SHEETS
<TABLE>
<CAPTION>
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(AMOUNTS IN NOK 1000) 30-SEP-00 31-DEC-99 30-SEP-99
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<S> <C> <C> <C>
R&D, purchased technology 43,018 21,431 21,431
Deferred tax assets 23,172 7,351 62,501
Goodwill 75,523
Property, plant and equipment 167,715 141,191 172,243
Financial non-current assets 372,698 271,291 318,002
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NON-CURRENT ASSETS 682,126 441,264 574,177
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Inventories 278,859 309,322 318,068
Trade receivables 647,294 592,548 674,726
Other receivables 333,811 445,847 285,484
Short-term shareholdings 2,300 2,300
Cash and cash equivalents 1,318,405 481,534 359,713
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CURRENT ASSETS 2,580,669 1,831,551 1,637,991
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TOTAL ASSETS 3,262,795 2,272,815 2,212,168
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Shareholders' equity 1,968,673 969,508 926,222
Long-term liabilities 291,702 335,038 374,338
Current liabilities 1,002,420 968,269 911,608
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TOTAL EQUITY AND LIABILITIES 3,262,795 2,272,815 2,212,168
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INTEREST-BEARING CURRENT LIABILITIES 61,952 32,509 178
INTEREST-BEARING LONG-TERM LIABILITIES 191,465 226,456 254,484
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</TABLE>
<PAGE> 6
REPORT FOR 3RD QUARTER 2000
NERA ASA
Nera continued to profit from high levels of activity in the markets and
successful sales work in the third quarter. The operating revenue, combined with
the order backlog, is a solid foundation for a satisfactory growth in volume on
an annual basis in line with the expectations the company earlier has expressed.
A growth of about 20 percent in the Transmission Networks business and a
somewhat lower volume in the Satellite Communications area than the previous
year.
With a targeted effort to increase delivered volume the revenues will develop
positively, adding to the normal seasonal variations, after coming through a
quarter that seasonal fluctuations and low run rate at the beginning resulted in
a somewhat lower production output than expected.
The operating margin is on a satisfactory level when the costs for developing
the Wireless Broadband Access unit are factored in. The operating income is
lower this year when compared to the same period last year, but earnings from
associated companies and net financial income are adding a sizable positive
amount to earnings before tax.
We continued developing Nera into a Broadband company with a wireless technology
base in the third quarter. From a common technology base in our knowledge of
radio link and satellite communications, we are targeting three different market
segments: Transmission networks, broadband access and mobile satellite
communications. Key points are UMTS, DVB-RCS, new point-to-multipoint products
and the development of mobile broadband terminals.
INCOME STATEMENT, BALANCE SHEET, NET CASH POSITION AND EQUITY
At the end of the third quarter 2000 the Nera group had accumulated sales of NOK
1 707 million. At the same point last year the sales were NOK 1 559 million
after deducting NOK 470 million in sales from discontinued operations. This
increase of NOK 148 million in sales represents a growth of about 10 percent.
Operating costs in the first three quarters were NOK 1 391 million compared to
NOK 1 280 million in 1999 adjusted for discontinued operations.
Operating margin before R&D was 16.3 percent, 3 percentage points higher than
the equivalent period in 1999. R&D costs were NOK 197.8 million in the first
three quarters this year, compared to NOK 159.4 million last year. R&D-costs
were 11.6 percent of sales this year, which compares to 7.9 percent the previous
year.
Operating income before restructuring was NOK 80.9 million in the first three
quarters of 2000 while it was NOK 85.2 million in 1999. In the same period we
have had an operating loss in the new, developing Wireless Broadband Access
business unit of NOK 57.9 million. Even when we include the development costs in
this unit we have an operating margin of 4.7 percent in the first 9 months this
year, compared to 5.5 percent in 1999.
<PAGE> 7
Earnings from associated companies were NOK 16.3 million and net financial
income was NOK 36.3 million, resulting in income before tax of NOK 133.5 million
at the end of the third quarter. This compares to NOK 80.2 million in 1999 when
adjusted for divested units and non-recurring items.
Net income was NOK 97.7 million, giving earnings per share of NOK 0.91 per share
based on an average number of shares outstanding of 107.9 million in the period.
As of 30th September 2000 the Nera group's consolidated balance sheet was NOK 3
263 million, an increase of NOK 990 million from NOK 2 273 million at the end of
1999. The equity has increased by NOK 999 million in the period, giving an
equity ratio of about 60,3 percent with the number of shares issued now standing
at 122.9 million.
The company's cash balance is good, with the payment for the newly issued shares
being the primary factor behind the increase in cash balance from NOK 482
million to NOK 1 318 million in the nine months from December 31 1999.
Acquisitions in the U.S. have added more than NOK 100 million to the balance
sheet total.
ORDER INTAKE AND BACKLOG
The order intake increased by 17 percent compared with 1999 both for the third
quarter alone and for the nine months ending September 30. Nine month order
intake was NOK 2 060 million compared to NOK 1 760 million adjusted in 1999. Our
market position is strengthened in several regions.
At the end of the third quarter we have significantly higher order backlog for
delivery in the first half of next year when compared to what we have
experiences in previous financial years.
In Transmission Networks order intake increased 38 percent compared to the same
period in 1999, and we experience solid demand for our products and services in
most markets.
The Satellite Communications order intake is down on adjusted 1999 numbers,
reflecting a lower activity in the Inmarsat earth station area.
The order backlog is NOK 1 166 million at the end of the third quarter, an
increase of NOK 332 million when compared to 1999 (after adjusting for the
discontinued operations and the terminated ICO-contract). Of the backlog NOK 716
million is to be delivered in the fourth quarter, while NOK 285 million is
scheduled for the first quarter of 2001 and NOK 165 million for the second
quarter of 2001 or later. The order backlog in Transmission Networks has
increased by about 50 percent.
After the end of the third quarter we have also signed a major contract
resulting in deliveries of about NOK 170 million in the first half of 2001.
FUTURE PROSPECTS
As we pointed out in our report for the first half-year the opportunities for
growth in Transmission Networks are good. We still expect this unit to attain a
20 percent growth in sales and income over 1999. The high volume presents a
challenge for our logistics and manufacturing functions, and these will receive
special focus in the fourth quarter and into 2001.
The sales volume within Satellite Communications will be lower than in 1999
after adjusting for discontinued units, but the operating margin will be more
than 10 percent.
<PAGE> 8
The broadband market is developing rapidly and is getting a lot of attention
from the public. Nera's Wireless Broadband Access unit is still in a development
phase, with focus on developing the product range, partnerships, the
organisation and channels to the market. The Board expects costs of about NOK 60
million for developing this unit in the fourth quarter, and the build-up will
continue next year. We expect to take some orders, but sales for this unit will
be marginal this year.
Nera's solid financial position will allow us to exploit structural
opportunities. The aim is to create an industrial unit which can play a
significant role in the global broadband market with the group's wireless
technology as the foundation.
Board of Directors, Nera ASA
Bergen/Oslo, 2000-26-10
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[NERA LOGO]
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NERA IS TAKING SHAPE AS A BROADBAND COMPANY
The development of Nera into a broadband company continued in the third quarter.
"Our aim is to create an industrial unit which can play a significant role in
the global broadband market with the group's wireless technology as the
foundation," says Skjeie, not hiding the fact that in order to reach t his goal
structural changes are necessary. With Nera's know-how in radio link and
satellite communications as the foundation, these three market segments are
targeted: Transmission Networks, Broadband Access and Mobile Satellite
Communications.
" We are positioning ourselves in the market for UMTS networks, exploring
various opportunities in Europe. Our participation in the Norwegian
Orange-consortium, which is seeking a Norwegian UMTS license, is a part of this
strategy. Orange/France Telecom, two of the partners in the consortium, also
have licences or applications all over Europe. In addition we are also working
through all our traditional channels to the market in order to win projects.
CityLink is a central product in this scenario, and now we are also able to
offer low capacity radio links from the acquisitions we made in the USA earlier
this year. In addition indications are that our experience and competence in
building radio based networks can become a competitive edge," says Skjeie,
expecting orders to materialize in 2001.
The Wireless Broadband Access unit is still in a development phase, with focus
on developing the product range, partnerships, the organisation and channels to
the market. The Eutelsat contract has increased the speed of the development of
DVB-RCS equipment, and contacts have been established with other potential users
of this technology. Nera Netlink, the Point-to-Multipoint product which will be
used in the Modalen municipality, is ready for the market. Velocity, which was
developed in Dallas, USA, will enter the marketplace in the fourth quarter. "We
are satisfied that we have been able to put together a substantial range of
wireless broadband access products in a timespace of six months," comments
Skjeie. "Now we have a solid foundation for getting orders, and we will increase
the focus on sales in the time to come." He expects costs of NOK 60 million in
the fourth quarter to continue the development of the business unit, as
previously planned.
Skjeie points out that it is gratifying to notice that the sales of Nera
WorldCommunicator is picking up speed in parallel with the development of Nera
as a broadband company. "The market seems to be catching on to this mobile data
communications terminal, and we will extend our evaluation of future
opportunities within the mobile broadband terminal segment based on our
satellite know-how," ends Skjeie.
ABOUT NERA:
Nera is a Norwegian company specializing in wireless broadband systems and
equipment. The company designs, develops, manufactures and market point-to-point
and point-to-multipoint radio link equipment. satellite terminals and land earth
stations for mobile and fixed satellite communications. Nera is a major supplier
to INMARSAT. The Company is listed on NASDAQ in New York (ticker: NERAY) and on
the Oslo Stock Exchange. Nera ASA has an associated company, Nera
Telecommunications Ltd., listed in the Singapore Exchange Ltd. (ticker: Nera
Tel). Nera's Web site: http://www.nera.no.
The quarterly report and a presentation of the quarterly accounts are available
from Nera's homepage at www.nera.no
Enclosures: Income statement, balance sheet, statement of cash flows and
quarterly results
Contact: Mr. Helge Skaar, Head of Corporate Communications, Nera ASA
Phone: +47 55 22 58 20, e-mail: [email protected]
