Norman ASA, the Norwegian data security company, posted an 8 per cent revenue growth in the first quarter of 2007. Net revenues ended at NOK 68.7 million. Norman posted an EBITDA result of NOK 5.3 million for the first quarter, following substantial investments in sales and R&D and the effect of increased deferred revenue. Growth in invoiced sales was 15 per cent in the quarter (6 per cent in the first quarter last year).

Profit before tax came in at NOK 4.4 million, compared to last year’s NOK 9.3 million. Despite lower margins, the company has maintained a strong cash flow in the first quarter. Operations generated a net cash flow of NOK 16.3 million, compared to NOK 17.3 million in the first quarter last year.

Operating costs were NOK 9.8 million higher in the first quarter this year compared to the same period last year. According to plan, costs have increased in the areas of sale and R&D. Higher software volumes and an increase in malware activity have also added to costs related to distribution of software.

In the first quarter, Norman experienced a continuation of the high growth in Europe outside Norway. In particular, the rest of Scandinavia performed well. Revenue generated in Norway saw a slight decline. However, the underlying sales development in Norway is positive. The first quarter was marked by preparations for a number of upcoming product releases. Among them is the next generation of Norman’s main product Norman Security Suite. The current version will be upgraded to the next generation Norman Security Suite which includes antivirus, personal firewall and parental control.

From the first quarter 2007, Norman’s business has been restructured into the following strategic areas which are expected to result in greater operational efficiency: 

• Core Security; the traditional backbone of Norman, general malware protection. 
• Network Protection; systems protection and scanning of complex integrated networks in large organizations. 
• Advanced Malware Analyzers; sophisticated malware analyzing tools to understand current and future threats. 
• Online Security Services; managed online service addressing the general data security market.

In the first quarter, Norman saw an increasing interest in its new product areas, in North America in particular. The market for malware analyzers is gaining momentum. While the number of malware attacks is on the increase, major outbreaks of single new viruses causing worldwide alarm is no longer the number one threat. Computer criminals now seem to aim for financial gain by attacking in a targeted way key infrastructures and major organizations rather than creating disturbance for a large number of users. Through its new malware analyzer products Norman has a unique solution to address these threats.

Norman’s financial position remains strong. The company has no interest bearing debt and enjoys a positive cash flow, as described above. Total cash at the end of first quarter was NOK 89 million. The company had 194 employees at the end of first quarter (186 at the end of first quarter last year).

For 2007 Norman is focusing on these areas of priority: 

• 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 expects a continuing growth and profitability going forward. The company will benefit from the refocusing and investments made in 2006 and first quarter 2007. Norman will continue to invest in product development and the new business areas in 2007.

Enclosed is a summary of the interim financial statements for the first 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).