Select countryOslo, 11 July 2002
Norman ASA had net revenues of NOK 61.7 million in the 2nd quarter 2002. This was an increase of 25% compared to the 2nd quarter 2001. EBITDA for Norman this quarter was NOK 13.7 million, a margin of 22% and an increase from NOK 7 million in the same period last year.
"The 2nd quarter was the best quarter that Norman has ever delivered. In this quarter, both of our business units have had a strong revenue growth and very high EBITDA margin", says Henning Hansen, President & CEO of Norman ASA. "We were especially satisfied that Ibas was again able to deliver revenue growth in line with 2001, and that virus control was able to improve its growth further".
Virus control with 25% organic growth and 23% EBITDA margin
Virus control, Norman's largest business unit, had net revenues of NOK 43.6 million in the 2nd quarter, an increase of 25% compared to 2nd quarter 2001. EBITDA for the quarter was NOK 10.2 million, a margin of 23%. It was especially the European countries outside Scandinavia that have contributed to this strong growth, and as well as sales to the SMB market, new ISP agreements have also been signed that will give good results.
This is the sixth quarter in a row where Norman's virus control business unit has delivered consecutively higher organic revenue growth and profitability.
The 2nd quarter has been an extremely challenging one for the whole anti-virus sector. The various forms of the Klez virus have caused the worst virus proliferation ever, and at its height, one in every 30 e-mails that was being sent was infected with this virus. The virus used special techniques to remove anti-virus software from servers and workstations, as well as mass-mailing methods that proved to be very effective. After a relatively virus-free 1st quarter, the Klez virus is a sure sign that the threat of virus attack is no less in 2002. It also shows the importance of having virus protection covering many parts of the infrastructure.
In addition, Norman received its seventeenth "100% award" from Virus Bulletin, the independent test organisation. Norman is therefore one of the three best vendors when it comes to awards from this external test organisation.
Ibas with strong growth outside the Nordic countries, and 20% EBITDA margin
In the 2nd quarter, Ibas had net revenues of NOK 18.1 million, an organic growth of 25% compared to the same period last year. EBITDA was NOK 3.6 million, a margin of 20%.
This growth has come mainly from Europe outside of the Nordic countries. The new investments in Singapore and France have given better results than expected and both of these countries were profitable in the 2nd quarter. In addition, Ibas was engaged to provide services in connection with the Pirelli Tower incident in Milan where a small plane destroyed large parts of an office building. Using Ibas' competence and technology, information on about 30 servers and workstations could be recovered.
Both computer forensics and ExpertErasure have continued their good development during the 2nd quarter.
Financial situation
Norman increased its cash balances from NOK 48 million to NOK 55 million in the 2nd quarter 2002. The company has no interest-bearing debt and during the quarter the number of days outstanding in accounts receivables was reduced from 35 to 32.
Future expectations
The market for Norman's products and services continues to be good and the company has the aim of outperforming market growth rates which according to the leading research companies are forecast to be 14-15% in 2002. The company will continue its strong focus on profitability.
In the 3rd quarter it is expected that revenue will be lower because of seasonal factors, but with a good margin.
For 2002 as a whole, Norman is upgrading its growth expectations to 20% with an EBITDA margin of at least 20%.
Enclosed is a summary of the preliminary financial statements for the 2nd quarter 2002.
For further information, please contact Svein Ramsay Goli, Chairman of the Board (mobile +47 907 56 757) or Henning Hansen, President & CEO, (office +47 67 10 97 17; mobile +47 908 81 192) / www.norman.no