Ireland | 18 May 2007 10:06
NorCom Information Technology AG / Release of an announcement according to article 37 WpHG [German Securities Trading Act]
Interim report according to article 37 WpHG, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
----------------------------------------------------------------------
NorCom starting the year off successfully in the 1st quarter of 2007
- Sales of EUR 6.31 million, up 11 percent on the previous year
- Sharp rise in net income to EUR 0.37 million (up 230 percent year on
year)
Munich, May 18, 2007 - NorCom Information Technology AG, which is listed in
the General Standard of the German Stock Exchange, achieved a year-on-year
increase of a good 11 percent in sales in the first quarter (January 1 -
March 31, 2007), which rose to EUR 6.31 million (previous year: EUR 5.67
million). At EUR 0.37 million, consolidated net income for the period
surged by a very gratifying 230 percent over the previous year (EUR 0.11
million).
Consolidated earnings before interest, tax, depreciation and amortization
(EBITDA) came to EUR 0.19 million in the period under review (previous
year: EUR 0.60 million), while results were balanced at the EBIT (earnings
before interest and tax) level (previous year: EUR 0.36 million). In the
first quarter, operating earnings were particularly dragged down by
spending on product business as part of NorCom's reorientation.
EUR mn 1st quarter 2007 1st quarter 2006
Sales 6.31 5.67
EBITDA 0.19 0.60
EBIT - 0.36
Net income for the period 0.37 0.11
Net assets and financial condition
As of March 31, 2007, the NorCom Group had total assets of EUR 35.27
million (December 31, 2006: EUR 34.97 million), while the equity ratio came
to 64.5 percent, up on the figure recorded at the end of the previous year
(63.8 percent). At around EUR 15.20 million, cash and cash equivalents
(including securities held as current assets) were up around 8 percent on
the end of 2006 (EUR 14.11 million), meaning that capital requirements were
sufficiently covered.
Business activity
NorCom was able to position itself successfully and achieve international
sales of its core NCPower product in particular. In January, a further two
TV broadcasters in Russia (Zvezda TV and Yugra TV) opted for NCPower, while
NorCom was able to establish a market presence in the Middle East with TV
broadcaster Orange TV in Beirut, Lebanon.
In the second quarter, NorCom continued these successes without any
interruption, signing a contract with TV broadcaster Nova Television
(Sophia, Bulgaria).
However, the NCPower multimedia editing, scheduling and production system
is increasingly also finding acceptance as an IPTV solution in the
innovative Internet TV market. Together with its partners, NorCom signed
up Axel Springer Digital TV GmbH, which is planning to build up its IPTV
broadcaster.
In addition, NorCom unveiled a global innovation in mid April, an
integrated solution for live transmission via mobile TV, for the first time
at the National Association of Broadcasters 2007 (NAB), the largest media
technology fair, in Las Vegas, United States.
'In 2006, we laid the foundations for our international sales thrust in the
software product segment. This year, we are intensifying and building on
the contacts which we have established,' explains Viggo Nordbakk, founder
and CEO of NorCom Information Technology AG. 'In addition to conventional
broadcasting, we also want to intensify our activities in IPTV, corporate
and mobile TV,' he adds.
Outlook
NorCom will be maintaining this route in 2007 and continuing its realigned
focus on software business in tandem with its internationalization
strategy. After a very upbeat but traditionally fairly muted first quarter,
NorCom expects the next few quarters, which on the basis of past experience
are characterized by greater sales volumes, to see heightened demand in the
broadcasting, IPTV and corporate TV markets.
Accordingly, NorCom projects generally favorable business performance for
2007 and is attaching top priority to boosting product sales. The Company
expects sales in this segment to double to good EUR 6 million and projects
sales growth of around 10 percent in its consulting business. In this
connection, it will continue to focus on profitability. However, NorCom
will be investing heavily again in its sales and marketing efforts for
product business in 2007 to reinforce its market position in this area and
to establish itself as a key operator in what is still a young market.
NorCom Information Technology AG (DE000525 0302)
DGAP 18.05.2007
----------------------------------------------------------------------
Language: English
Issuer: NorCom Information Technology AG
Stefan-George-Ring 23
81929 München Deutschland
www: www.norcom.de
End of News DGAP News-Service
---------------------------------------------------------------------------