Norman ASA, the data security company, today announces its fourth quarter and year end 2007 results. Net revenue last year ended at NOK 270.0 million, up from 252.4 million in 2006. EBITDA for the full year 2007 was NOK 35.9 million, compared to NOK 39.6 million the previous year. 2007 was a year of transition for Norman. A new business model is being implemented and a number of innovative products, at the core of the next generation data security, were launched. 

Norman’s profit before tax for 2007 ended at NOK 31.5 million (previous year NOK 36.4 million).

“The Company experienced considerable changes in 2007. In accordance with our strategy the R&D efforts were stepped up significantly and a number of new products were rolled out. We also took important steps towards improving our operational efficiency. Norman will clearly benefit from these initiatives going forward,” said Norman’s CEO Trygve Aasland.

For the fourth quarter of 2007, Norman posted net revenue of NOK 81.1 million, up from 65.2 million in the same quarter in 2006. The key element in the fourth quarter growth is a one-time payment from companies owned by the management shareholders of Norman’s 70% owned Dutch subsidiary Norman Shark BV. In the fourth quarter, Norman received a NOK 39.0 million payment from these entities as settlement of a dispute. NOK 21.1 million was booked as net revenue in the fourth quarter, while NOK 17.9 million is booked as deferred revenue in the balance sheet.

EBITDA for the fourth quarter was NOK 18.7 million, up from NOK 9.1 million in the same quarter of 2006. Profit before tax ended at NOK 17.3 million, up from NOK 8.3 million.

Norman released the first new version of its core product in the fourth quarter; the single user version of Norman Security Suite. The new generation data protection software is extremely well received by the market and industry analysts. The Security Suite release towards the end of the year is the most recent in a series of launches in 2007, including the SandBox Online Analyzer, Norman Network Protection and the 5.9 version of Norman Virus Control for corporate clients.

During the year the Company’s research and development activities were significantly stepped up in Norway as well as by establishing a new R&D facility in India.

Norman’s US focus was further strengthened also in the fourth quarter. The US operations saw a 79% revenue increase compared to the same quarter in 2006. During 2007 Norman developed its relations with US ‘Fortune’-type companies, federal sector and institutions in the IT sector. The Company’s SandBox technology is increasingly recognized as an attractive analyzing tool for advanced malware and Norman is taking a leading role in this emerging market.

In Q4, Norman obtained the option to acquire the remaining 30% in Norman Shark BV in Holland for the total amount of Euro 600,000.

Norman’s financial position remains strong. The company has no interest bearing debt. Total cash at the end of the year amounted to NOK 108.2 million. This is a significant increase compared to the previous quarter as well as year-end 2006. The improved cash position is mainly due to the settlement in Holland (described above).

The company had 178 employees at the end of 2007 (191 at the end of the previous year).

Norman expects to gain momentum and renewed organic growth, as new products are adopted by the market. The company will continue to invest in product development and marketing both in its traditional products areas and its new areas of growth. Norman’s strong cash position represents a considerable flexibility in terms of future growth alternatives and in creating shareholders value.

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

For further information, please contact: 

• Chairman of the board Svein Ramsay Goli (+47 9075 6757)
• CEO Trygve Aasland (+47 4153 9717)
• CFO Simen Nyberg-Hansen (+47 9820 6355)