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Axis Communications, the global leader in network video, has published financial results for the first six months of 2007, confirming Axis' strong sales growth of 44 per cent in its core market of network video products and fortifying the company's market leadership both globally and in the EMEA region.

For the first six months of 2007, Axis Communications reported total net sales of SEK* (Swedish Krona) 748 M, compared to SEK 540 M for the corresponding period in 2006, delivering an increase of 39 per cent.  Net sales revenue in its network video core product set climbed 44 per cent to SEK 677 M, compared with SEK 469 M in the same period of 2006. Across the EMEA region, total net sales reached SEK 343 M compared with SEK 250 M for the same period last year.

The company's operating profit also increased significantly to SEK 161 M, compared to SEK 81 M for the first six months of 2006.  The gross margin remained stable and amounted to 55.7 per cent, compared with 54.2 per cent for the first six months of 2006.

Axis sees the market for network video to continue its sharp growth across all regions for the second half of 2007, and its goal is to keep pace with the market.  To face these challenges, the company will keep the close cooperation with its partners, one of Axis' key success factors.  As of June 30, 2007, Axis had approximately 11,000 sales channel partners and distributors, and more than 400 ADP partners.  In light of the constantly increasing interest in network video products, Axis provides ongoing training for its partners.

The company that introduced the world's first network camera in 1996 offers the market's broadest network video portfolio today.  In Q2 2007 Axis launched four innovative network video products: AXIS 216MFD, AXIS 211M, AXIS 215PTZ and AXIS 247S. AXIS 216MFD is a megapixel dome camera that delivers video at three times the resolution of an analogue camera.  AXIS 211M is a megapixel camera suitable for professional installations in environments where detail accuracy is desirable, such as schools, stores, airports or banks.  AXIS 215PTZ is a network camera that can pan 360 degrees, and accordingly, is particularly suitable for receptions, schools or offices.  AXIS 247S is a compact video server that supports power supplied over the Ethernet (PoE).

Simon Harris, research director at IMS Research commented, "The world market for network video surveillance products increased by an impressive 41.9% in 2006 and has the potential to grow even faster than this.  With its previous strong results, Axis Communications was able to strengthen its position as a leading camera manufacturer, and in 2005 was ranked 8th globally and 3rd in the EMEA region."

Steve Gorski, managing director, Axis Communications (UK) commented, "We are very happy to continue our consecutive growth in sales and profits which has helped us to strengthen our position as market leader in the fast growing network video sector.  In order to maintain the pole position and to meet the increasing competition in the market, we will continue to launch innovative network video products, strengthen cooperation with sales channels, distributors and development partners, and pursue expansion and ongoing recruitment."

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