Select countryLysaker, 10 October 2001
The board of directors of Norman ASA has today decided to propose to the shareholders a reversal of the decision of the recent extraordinary general meeting to de-merge the Security Solutions business unit. Assuming that the shareholders approve the proposal of the board, then all activities within this business unit, with the exception of those related to the Norman Risk Check product, will be wound up.
The reasons for the planned de-merger of Security Solutions included, among others, that Security Solutions as a stand-alone company would have greater flexibility in entering into strategic alliances and also that the company would have direct access to the capital markets. Given the difficult equity markets that we are currently experiencing, and with the uncertainty related to when Security Solutions will achieve a positive cashflow, the board of directors have decided that it is no longer feasible to continue the de-merger process.
The winding up of Security Solutions will occur by establishing Risk Check as a separate part of Norman ASA at the same time as the 3 Security Solutions companies in the Czech Republic, Australia and Germany will be wound up. This process will not result in any redundancies in Norway.
The winding up is not expected to have a significant negative impact on Norman ASA's cashflow as the associated wind-up costs of kr 37.4 million are mainly related to the write-off of product rights. These costs will be included in the results for the 3rd quarter 2001. Norman ASA had a cash balance of kr 30 million as at 30th September 2001 and the board are therefore of the opinion that Norman ASA has no requirement for further capital.
Norman ASA will be comprised of two main business units after the winding up of Security Solutions; Norman Virus Control and Ibas. These had a combined net revenue of kr 97,8 million and an EBITDA of kr 13 million in the 1st half year 2001 and both are expected to continue with positive growth and with a positive cashflow.
Norman's Risk Check activities will continue as part of Norman ASA and is expected within a short period of time to give a positive contribution. There is significant interest for this product amongst consulting firms that wish to use this software tool as part of their risk analysis activities. As recently as August, a partner agreement relating to risk analysis was signed with HP Consulting, in addition to previous agreements with other consulting firms. This business segment is characterized as having great potential with limited investment.
An extraordinary general meeting to approve the proposal to reverse the demerger of Security Solution will be held on 6 November 2001, followed by the presentation of 3rd quarter 2001 results.
For further information please contact
Henning Hansen, President & CEO, tlf. + 47 67 10 97 00