Strong year-end for Norman
Press release
Lysaker, January 23rd 2009
Norman ASA, the data security company, today announced its fourth quarter and full year 2008 results. Norman’s sales revenues in the fourth quarter were NOK 73.5 million which represent a 22% growth over fourth quarter of 2007. EBITDA in the fourth quarter reached NOK 50.1 million, up from NOK 18.7 million in the fourth quarter of 2007. The acquisitions in Benelux contributed positively to the EBITDA with a one-off effect of NOK 41.7 million.
Sales revenue in 2008 ended at NOK 263.7 million, up from NOK 248.9 million in 2007. EBITDA for the full year 2008 was NOK 68.3 million, compared to NOK 35.9 million the previous year.
Market
The demand for advanced security solutions is still strong. Norman experienced growth in all product areas in the fourth quarter despite the financial turmoil the world is currently experiencing.
The malware threats facing companies, the public sector and individual computer users reached an all time high level in the fourth quarter. Never before has the world experienced such a variety and sophistication of security threats. The current financial crisis represents a backdrop for a new wave of fraud attempts both towards consumers and companies. In 2008 it is estimated that there is more illegitimate code released than legitimate code. Norman increased the general threat level from Low to Medium in December. The warning was announced on the Norman home-page and through e-mail and SMS to registered customers.
Core Security
The Core security product area experienced good progress in all geographical regions due to the ever growing security threats. OEM revenue continues to grow and contribute positively to the growth in North America. Several important contracts related to internet banking was extended and expanded. New sales of malware incident services were also introduced and sold to the banking sector.
Network Protection
The Norman Network Protection product area also developed positively in the fourth quarter. A number of contracts were signed and sales efforts in Europe and the United Stated were intensified by the hiring of dedicated sales resources on both continents.
The agreement with Dell Inc. whereby Dell handles all logistics of the sales of the Norman Network Protection ‘as an appliance’, was replicated in all major European countries. The process with implementing similar set-up in North America has commenced.
Advanced Malware Analyzers
The Norman SandBox Analyzer products area saw a number of new contracts in the fourth quarter. Among the new customers are the Swedish Security Police (Säkerhetspolisen). On the renewal side, SonicWALL and a number of major manufacturing companies, national security agencies and US Federal sector has renewed. The portfolio of major companies and institutions using the Norman SandBox Analyzer products is increasing.
The SandBox Analyzer Software Development Kit (SandBox SDK) was introduced to some key customers for testing. This product can be implemented in a number of third party solutions and is a strategically important product in developing the unique Norman Sandbox technology product offering further.
Finance
With the exception of currency exposure and the risk considered normal for an international IT company, Norman faces no particular risk going forward. The Company has revenues and expenses in a number of currencies, particularly EUR, CHF and USD and is exposed to fluctuations in these currencies. Foreign exchange risks arise from future commercial transactions, recognised assets and liabilities and net investments in foreign operations.
Norman’s financial position remains strong. Total cash at the end of 2008 was NOK 101.5 million, compared to NOK 108.2 million at the end of 2007. The Company had 201 employees at the end of 2008 (178 at the end of 2007).
Outlook
Norman will continue to invest in its sophisticated anti-malware technology. Despite a more turbulent global economic situation, there are no indications that the growth in data security threats will diminish. Norman’s client portfolio is also well balanced, including SMEs as well as major corporations, financial institutions and government agencies. However, the current financial turmoil might impact demand in the shorter perspective.
The Company’s strong financial position provides flexibility in terms of future growth alternatives and in creating shareholder value.
Enclosed is a summary of the interim financial statements for the fourth 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)
