Norman ASA, the data security company, achieved net revenues of NOK 130.2 million in first half of 2007, a 3 per cent growth over the same period last year. The EBITDA result was NOK 8.9 million, giving an EBITDA margin of 7 per cent. The lower EBITDA margin is a result of the previously announced increased R&D efforts and a continued repositioning of Norman’s business model, in which the company is creating the basis for new growth.

For the second quarter, Norman’s net revenues amounted to NOK 61.5 million, slightly below the second quarter last year due to reduced third party sales as planned. EBITDA in the second quarter was NOK 3.6 million (EBITDA margin of 6 per cent), following increased investments in R&D and sales and marketing activities in preparations for software releases.

Norman is currently implementing a repositioning of the company focusing on four business areas. Norman’s main product is estimated to be launched in a completely new version in the third quarter under the name Norman Security Suite. In addition, a number of new products in the company’s other business areas have been launched recently. As a consequence, the focus on and actual sale of third party products have been significantly reduced compared to the same period last year. This is tightly linked to the company’s strategy to be less dependent on third party technology/partners. In this perspective, a temporary slowdown in growth and profitability for the core security business area stands to reason.

Norman’s new and sophisticated product portfolio for advanced malware analysis based on Norman SandBox technology is providing results. This technology is, in addition to being embedded in the Norman core security and network protection products, used in the newly launched products Norman SandBox Analyzer and Analyzer Pro. These products are sold to large organizations exposed to increased targeted attacks as well as national security agencies. The market for the Analyzer products is particularly attractive in North America, where Norman saw a 20 per cent sales increase in the second quarter.

The new product Norman Network Protection (NNP) was launched in the second quarter. NNP scans and protects large integrated computer networks against unwanted malware and was well received by the market. Several new channels, amongst them the Nordic IT infrastructure product and services company, Ementor, have included NNP among its focus products.

Norman has previously communicated these focus areas for 2007: 

• Deliver results from R&D re-focusing started in 2006; roll out new products. 
• Improve operational efficiency; Norman’s business areas have been more clearly defined.

Norman’s development in the first six months of 2007 has followed the direction set out in these priorities. Several of the new products have already been launched and additional new products will be introduced in the second half. The company’s new business areas show positive developments, as discussed above.

Norman’s financial position remains strong. The company has no interest bearing debt and enjoys a positive cash flow. Total cash at the end of second quarter was NOK 70 million, after dividend payment of NOK 9.8 million. The company had 185 employees at the end of second quarter (185 at the end of second quarter last year).

Norman expects future growth and profitability from the repositioning and the investments made in 2006 and the first half of 2007. The company will continue to invest in product development and its new business areas during 2007.

Enclosed is a summary of the interim financial statements for the second quarter 2007.

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).