Lysaker, 16th August 2001   

Norman ASA had net revenue of NOK 100 million in the first half year 2001. This was 10% more than the same period last year, as adjusted for the sale of the Ibas repairs business last year. The virus control business unit and Ibas had net revenues of NOK 97.8 million. EBITDA was NOK 16 million.

- Ibas has continued its strong development from the first quarter with strong growth and high profitability. Its investments in computer forensic and secure eraser as well as the further development of its distribution channel in new markets will secure future growth and profitability, says Henning Hansen, President and CEO of Norman ASA. It is also reassuring that Norman has improved growth within virus control, and the spread of new viruses in recent weeks shows how important it is to have a product that can detect viruses. There is also an increasing awareness in the market of the risks related to sending unencrypted emails as well as not securing PC's with a personal firewall. Norman supplies solutions within both of these areas and sees an increased demand for these types of products.

The company is continuing its strong focus on cost-control and despite one-off costs in the 2nd quarter 2001 relating to personnel changes and the proposed demerger of Norman Security of MNOK 2.1, total operating costs fell from NOK 59 million in the 1st quarter 2001 to NOK 58 million in the 2nd quarter 2001. The breakdown of costs in the 2nd quarter 2001 was similar to 1st quarter 2001, and the increase compared to 2nd quarter 2000 reflects both the acquisition in September 2000 of the PKI development team located in the Czech Republic as well as a general increase in personnel especially within virus control R&D and Norman Security sales/ management. When the Norman Security technology transfer process is completed at the end of 2001, a reduction in operating expenses by MNOK 0.8 per month is expected.

The process of demerging Norman Security is progressing as planned and has now been approved by the board of directors. A guarantee consortium of existing shareholders has been established. Norman Security's continued focus on distribution partners and the centralisation of its research and development function are important and time-consuming processes that will secure future growth and profitability.

Virus control with increased growth

The largest business unit of Norman, virus control, had net revenue of NOK 67.4 million in the first half year 2001 compared to NOK 64.4 million last year, an increase of 5%. EBITDA for the period was NOK 11 mill.

Norman Virus Control has strengthened its position as one of the best solutions in the market for protection against virus attack with, among others, a renewed Checkmark certification from West Coast Labs and the last two 100% awards from Virus Bulletin. In addition, Norman Virus Control was made "Editors Choice" in Personal Computer World for the best virus control product for the small/medium sized market.

In the first half year 2001, Norman has signed the following major agreements:

  • Agreement with Fujitsu-Siemens where Norman Virus Control, Norman Personal Firewall and Norman Privacy are to be pre-installed on 1.5 million PCs
  • Agreement with Actebis where Norman Virus Control is to be pre-installed on 1 million PCs
  • Agreement with Tele2 to supply Norman Virus Control to all its internet customers
  • Agreement with Tiscali World Online to supply Norman Virus Control, Norman Personal Firewall and Norman Privacy
  • Agreement with Tele Danmark to supply Norman Virus Control, Norman Personal Firewall and Norman Privacy to its internet customers
  • Agreement with NextGenTel to supply Norman Virus Control, Norman Personal Firewall and Norman Privacy to its internet customers
  • Agreement with UPC to supply Norman Virus Control, Norman Personal Firewall and Norman Privacy to its customers

30% growth and 16% EBITDA margin at Ibas

Ibas had net revenue in the first half year 2001 of NOK 30.4 million, an increase of 30% compared to last year as adjusted for the sale of the Ibas repairs business. EBITDA was NOK 5 million. It is mainly data recovery and secure eraser that is contributing to this growth, but there is also a strong increase in the number of computer forensic enquiries. Ibas is expecting that this will be the business segment that will show strongest growth in the future and have therefore hired additional personnel with special expertise in this area.

In the 2nd quarter, Ibas signed agreements with partners in Canada/US and the Baltic countries, among others, which are expected to give the company greater market presence than before.

Security Solutions - continuing investment in partners and competence

Norman Security had net revenue of NOK 2.2 million in the first half year 2001, compared with NOK 2.9 million last year. EBITDA was minus NOK 23.9 million. This reduction in income is mainly due to delays in projects that have been pushed forward as a result of the changed economic outlook for both US and European customers. There is significant interest in Norman Risk Check amongst consulting firms that wish to use this product as part of its risk analysis work. Public authority legislation in Europe and US will make this an important focus area for Norman Security. There are two competitors for this type of product on the market and with the right partners, Norman Risk Check is in a position to be market leader in this segment.

In the first half year 2001, Norman Security has signed the following major agreements:

  • Completed the first Norman Risk Check project with the local public authority sector in Norway. This project was carried out together with a partner in accordance with the indirect distribution strategy
  • OEM agreement of Norman Access Control with IT-Sec in Germany. IT-Sec is a company established by former employees of Utimaco
  • Partnership agreement with PricewaterhouseCoopers in the US for security products
  • Partnership agreement with HP Consulting in Norway for Norman Risk Check

The technology transfer process from Australia to the Czech Republic is progressing as planned and will improve the effectiveness of the development work as well as reducing the cost level from the end of the year.

Future outlook

Norman ASA has, with continued focus on its core businesses and cost control, a good basis for further growth and increased profitability.

Enclosed is a summary of the preliminary financial statements for the 2nd quarter 2001.

For further information, please contact Svein Ramsay Goli, Chairman of the Board of Norman ASA (mob + 47 907 56 757) or Henning Hansen, President & CEO of Norman ASA, (tel + 47 67 10 97 17; mob + 47 908 81 192) /www.norman.no