Strong first quarter for Norman
Press release
Lysaker, April 22nd 2009
Norman ASA, the data security company, today announced its first quarter 2009 results. Norman’s sales revenues were NOK 75.1 million, which represent an 11% growth over last year’s first quarter sales revenues of NOK 67.9 million.
The EBITDA more than doubled and reached NOK 14.9 million, up from NOK 7.0 million in the same quarter last year. The EBITDA margin was 19%, compared to 10% in last year’s first quarter. A successful turnaround in the Benelux region and a strong cost focus in the Group overall contributed to the strong improvement in the EBITDA.
Market
The demand for advanced security solutions remains strong. The threats keep rising and in the first quarter particular concern was caused by the Conficker virus, a worm that primarily spreads through a vulnerability in the Microsoft- operating systems. Conficker disables security services and enables perpetrators to take control over the computer.
In addition to the general increase in demand for data protection, the emerging market for sophisticated and specialised security solutions continued to grow.
Core Security
A public beta version of Norman’s new Endpoint Manager was successfully launched in the quarter, with more than 600 beta users subscribing. The Endpoint Manager is part of Norman’s Endpoint Protection product which is an IT security defence system against targeted, criminal attacks. Included in the beta launch was also another new technology from Norman: DNA Matching.
The new solutions improve the SandBox based proactive capabilities even further and strengthen Norman’s position as the world leader in proactive security solutions.
Network Protection
Through the cooperation with Dell, Norman Network Protection (NNP) is distributed and handled by Dell as an appliance. The first appliances were installed at customers in the first quarter and the European launch has created an even stronger interest in NNP from potential customers in Europe.
Bauer, a German construction group, has installed NNP in its 1,500+ PC network in order to protect its Electronic Content Management (ECM) solution. In addition, Norman experienced sales within the public sector, education and manufacturing verticals.
Advanced Malware Analyzers
Norman’s advanced malware analyzer tools are used by global IT organisations, financial institutions, police authorities and national security agencies who handle large amounts of sensitive data.
Norman SandBox Analyzer contracts achieved a 100% renewal rate in the first quarter of 2009. New sales were also concluded into the national security vertical.
Finance
Norman’s financial position remains strong. In the first quarter cash flow from operating activities ended positively with NOK 12.7 million. Total cash at the end of the first quarter was NOK 104.8 million, compared to NOK 115.4 million 12 months previously. The Company had 196 employees at the end of the first quarter (187 employees 12 months previously).
Outlook
Norman will continue to expand its multitude of distribution channels in order to expand the Company’s market reach for existing and new products. Norman will also continue to invest in its sophisticated security technology and remain a technological front-runner in its field. The main focus will be on further developing Norman’s leadership in proactive technologies and forensic tools.
Obviously, the current economic climate represents considerable uncertainty. However, there are no signs of a reduced demand for advanced data security solutions. The ever growing number of threats, more sophisticated malware and the increase in criminal, targeted attacks generate an increased demand for Norman’s products and expertise. Norman therefore expects stable sales and results development. However, the company’s growth and margin may continue to fluctuate between quarters.
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 first quarter 2009.
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)