Select countryPress release
25 January 2006
The data security company Norman increased total revenue by 14 per cent to NOK 231 million in 2005. The preliminary accounts show that the company’s result almost doubled last year. Pre tax profit ended at NOK 34.7 million, compared to NOK 17.9 million in 2004.
Norman achieved an EBITDA of NOK 38.0 million last year, representing an EBITDA margin of 16 per cent. In 2004, the EBITDA was NOK 21.1 million, a margin of 10 per cent. Earnings per share for 2005 were NOK 2.22, compared to NOK 1.80 the previous year.
Norman enjoyed good profitability also in the fourth quarter of 2005. Revenue in the quarter was NOK 62.5 million, a 7 per cent increase over the same period the previous year. EBITDA was NOK 10.2 million in the fourth quarter, compared to NOK 2.7 million the year before. This corresponds to an EBITDA margin of 16 per cent, compared to 5 per cent in the fourth quarter of 2004. Pre tax profit was NOK 9.3 million in the fourth quarter last year, compared to NOK 1.8 million in the same period of 2004.
Norman’s revenue growth is primarily generated in Europe outside of Norway. This market now represents 70 per cent of total turnover, while the Norwegian market accounts for 24 per cent.
The threats facing computer users are an increasing challenge. The emergence of new computer viruses is continuing and the virus attacks are becoming more rapid and sophisticated. Also, the number of new threats like spyware and phishing (identity theft) on the Internet is increasing.
Norman enjoys a continued good profitability. In order to strengthen the company’s position in 2006, more resources will be allocated to research and development. Next generation Norman security products and additional new products will be launched medio 2006. Hence, the company will be able to address a larger market in addition to the SME segment, which has been the company’s main market.
In November, Trygve Aasland succeeded Henning Hansen as Norman’s President and Chief Executive Officer.
Norman’s financial position is strong. The company has no interest bearing debt and enjoys a positive cash flow. During 2005, Norman generated NOK 30.6 million in cash from its operations. In the fourth quarter, the company bought own shares at NOK 8.8 million. Total cash at the end of 2005 was NOK 83.5 million.
The company had 183 employees at the end of 2005, compared to 164 employees at the end of the previous year.
The internal changes now taking place, together with increased R&D and more efficient sales efforts on existing and new products are expected to contribute positively in 2006. At the same time, new security threats are expected to trigger even more demand for Norman’s state-of-the-art security software. Norman is in a good position to develop growth and profitability.
For further information, please contact Chairman of the board Svein Ramsay Goli (+47 9075 6757) or CEO Trygve Aasland (+ 47 6710 9717 or +47 4153 9717).