ARCHIVE 2005

Norman ASA doubled its growth rate in 2004, while maintaining profitability at the same high level as the year before.

The company’s preliminary year-end accounts for 2004 show gross revenues of just over NOK 220 million, an increase of 17 per cent on the year before when its growth rate was 8 per cent.
The company’s EBITDA for 2004 amounted to NOK 43.5 million, corresponding to a margin of 20 per cent, which is on a par with 2003. Profits before tax rose by NOK 5.2 million to NOK 38.3 million. Earnings per share totalled NOK 3.16, up from NOK 2.84 the year before.
Norman’s gross revenues rose by 16 per cent in the fourth quarter to NOK 64.8 million, while EBITDA amounted to NOK 10.8 million. This corresponds to an EBITDA margin of 17 per cent. Personnel costs have increased during the quarter as a consequence of recruitment of new staff to handle the company’s continued growth and payment of bonuses resulting from the company’s strong financial results.
Norway now represents ca 30 per cent of total revenue. Sales continue to grow strongly in the majority of European markets. Through 2004 Norman’s gross revenues rose by 35 per cent in Europe excluding Norway, and by 26 per cent in the US. The rate of growth in important European markets accelerated through the year. In Germany, for example, sales increased by 51 per cent in the fourth quarter alone, while growth in the BeNeLux area amounted to 41 per cent. This development is in line with the company’s strategy to grow outside of Norway.
Norman’s financial position is solid. The company has no interest bearing debt and a significant cash flow. Operations in 2004 generated a total of NOK 49 million.
Norman’s SandBox technology, the state of art technology in the field of proactive virus protection, continued to draw a positive response from the market during the fourth quarter. There is growing acceptance for the view that traditional, signature-based antivirus solutions will be unable to meet the security challenges facing computer users. New viruses are appearing with increasing frequency and are spreading more rapidly than before, prompting a growing number of people to point to the need for good proactive solutions. Norman is particularly well positioned to take advantage of this trend.
During the fourth quarter Norman signed an agreement with the US company NetIQ, a leading provider of security management systems. As a result of the agreement Norman Virus Control with SandBox will become an integrated part of NetIQ’s solutions to new customers. In addition Norman’s technology will be made available to NetIQ’s 1.2 million existing customers.
Although there were fewer major virus attacks during the fourth quarter than in previous periods, the risk of virus attack is considered just as great as before. Viruses still pose the greatest threat to companies’ IT infrastructure.
Financial situation and future expectations
Norman’s cash reserves increased by NOK 15,4 million during the forth quarter. During the quarter Norman’s subsidiary in the Netherlands paid out dividend whereas NOK 3.5 million was paid out to the minority shareholders. In December the general meeting voted for an extraordinary dividend of NOK 3,75 per share. Norman ASA has generated NOK 49 million from the operation in 2004. Adjusted for dividend payout and sale of own shares the cash has increased by NOK 32 million in 2004 to a total of NOK 111million.
Given the potential virus risk, the increasing need for data security solutions, Norman’s cutting edge technology and the high rate of growth in the company’s European operations, Norman expects both business growth and profitability to remain high in the year ahead.