Select countryPress release
12 October 2005
Norman ASA, the Norwegian data security company, experienced a growth in revenue of 12 percent in the third quarter, compared to the same period last year. This was the ninth consecutive quarter with double digit growth. Adjusted for the appreciation of the Norwegian krone actual growth was 17 percent. Norman’s margins improved even further. In the third quarter, the company achieved an EBITDA margin of 22 percent, compared to last year’s 18 percent.
Norman’s revenue for the quarter was NOK 55.8m, against NOK 49.8m last year. The company’s EBITDA result was NOK 12.3m, whereas it was NOK 8.8m last year. Pre tax profits stand at NOK 11.6m, against NOK 7.9m previous year. Earnings per share were NOK 0,73, up from NOK 0,58.
Accumulated revenue for the first nine months was NOK 168.7, a growth of 17 percent. EBITDA came in at NOK 27.7. Adjusted for the appreciation of the Norwegian krone actual growth was 21 percent. The EBITDA margin for the first nine months was 16 percent, up from 13 percent.
Commenting on the result, Norman’s CEO, Henning Hansen, said: “The third quarter was clearly marked by the summer season in its two first months, while September came in very strong. I am satisfied with the fact that we are maintaining a high growth rate in Europe, which is our key market. I am particularly pleased to see that we now manage to improve our margins even further. After the third quarter, our EBITDA result is higher than for the entire last year."
69 percent of Norman’s revenue is now in Europe outside Norway. 24 percent of the revenue is generated in Norway.
"Even though there were no extraordinary and dramatic virus attacks in the third quarter, the virus threat is still increasing. More and more computers and networks are being attacked and the virus writers are becoming more sophisticated and ill intentioned," says Mr Hansen.
There is a very positive interest in Norman’s security solutions in the market. A number of new contracts have been secured with new customers in the third quarter. Several of these contracts have been signed after client testing of solutions from a number of security vendors. In the end, Norman’s unique SandBox technology brought home the contracts.
Norman’s financial position is strong. The company has no interest bearing debt and provides a significant positive cash flow. During the first three quarters, Norman generated NOK 18m in cash from operations. In the third quarter, the company has booked an extraordinary payment of NOK 4m in taxes related to the company’s stock option plans. At the end of the third quarter the company had NOK 80m in cash.
The process of recruiting the new CEO as a replacement for Henning Hansen is progressing well. The Board of Directors is in the final stage of the selection process and expects to announce the new CEO soon.
The company’s unique technology, the strong position in key markets and the increasing virus threat leads Norman to have a positive outlook on the future. In the coming months, Norman will bring a number of new products and upgrades to the market, in order to improve the company’s position even further. Norman expects growth and profitability to continue.
For further information, please contact Chairman of the board Svein Ramsay Goli (+47 9075 6757) or CEO Henning Hansen (+ 47 6710 9717 or +47 9088 1192).