Norman ASA, the data security company, today announced its first half 2008 result. Norman posted net revenues of NOK 133.3 million, which is at par with last year’s first half. EBITDA for the first six months came in at NOK 8.7 million, compared to NOK 8.9 million last year. The results correspond to an EBITDA margin of 7% for the first six months, unchanged from last year. Pre-tax profit ended at NOK 5.8 million, down from NOK 6.9 million last year.

The company continues to be hit by a negative currency effect in Q2. In local currencies the revenue growth was 5% in the first half of 2008.

For the second quarter 2008, net revenue ended at NOK 62.6 million, which is slightly up from the second quarter of 2007. EBITDA was NOK 1.7 million, down from NOK 3.6 million the previous year. The EBITDA margin for the second quarter was 3% reflecting increased onetime cost related to Normans operation in Benelux. The Company continues to reduce sale of 3rd party products which in combination with increased OEM revenues increased the gross margin to 88% from 86% in the second quarter of 2007.

Following a number of new product releases in previous months, Norman improved its market position in a number of areas during the quarter. In the Core Security business area Norman saw a positive growth in its OEM agreements with other IT companies – in particular Microsoft and F-Secure. Fujitsu Siemens Computers expanded its co-operations with Norman significantly, enabling the Company to bundle its main security product with Fujitsu Siemens computers to consumers throughout the entire EMEA region.

Within the Network Protection business area the steady flow of trial users seeking to explore Norman’s new products continues. Volumes are increasing and the company is installing the product into new vertical markets like security in addition to healthcare, manufacturing and education. The increase in security threats suggests that Norman Network Protection is an attractive product offering.

The Advanced Malware Analyzer business area also saw a positive development, especially in the United States. During the first half of the year, all expiring licences were renewed and new sales grew. A number of the world’s leading IT companies have reconfirmed their use of Norman’s sophisticated analysing tools and the interest from potential customers is increasing.

With the exception of its currency exposure, Norman faces no particular risk for the second half of the year, beyond what is considered normal for an international IT company. The Company has revenues and expenses in a number of currencies, especially EUR, CHF and USD, and is exposed to fluctuations in these currencies. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investments in foreign currencies.

Norman’s financial position remains strong. The company has no interest bearing debt. Total cash at the end of the quarter amounted to NOK 78.7 million, which is down NOK 36.7 million from the first quarter. Norman paid its share holders a dividend of NOK 29.3 million in the quarter.

No significant events arose during the first half of 2008, except that the options related to Norman Shark BV, DCC Shark and DCC GFI were called. Furthermore, no transactions involving closely related parties having a significant impact on the Company’s financial position have occurred in the first half of 2008. The company had 186 employees at the end of the second quarter (185 at the end of second quarter of 2007).

“In the second quarter, Norman took a series of important steps towards renewed growth. We have released a number of new products in a short period of time, and our main priority is now bringing the new products to the market. During the quarter we have also seen numerous confirmations that Norman has succeeded in developing the next generation data protection software,” said CEO Trygve Aasland.

Norman will continue to invest in bringing new products to the market. As new products are adopted by the market, Norman expects to gain momentum and renewed organic growth, especially towards the end of the year. The Company’s strong cash position represents considerable flexibility in terms of future growth alternatives and in creating share holder value.

Enclosed is a summary of the interim financial statements for the second quarter 2008.

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)