NORMAN ASA 2. kvartal 2002 / 2 nd Quarter 2002 Lysaker, 11. juli 2002 / 11 th July 2002
Norman med 25% vekst og 22% EBITDA margin Norman ASA hadde driftsinntekter på NOK 61,7 millioner i 2. kvartal 2002. Dette er en økning på 25% sammenlignet med 2. kvartal 2001. EBITDA for Norman i kvartalet ble NOK 13,7 millioner, en margin på 22%, hvilket er en økning fra NOK 7 millioner i tilsvarende periode i fjor. Andre kvartal er det beste kvartalet som Norman noensinne har levert. I dette kvartalet har begge våre forretningsområder hatt en sterk vekst og en meget sterk EBITDA margin, sier administrerende direktør Henning Hansen. Vi er spesielt fornøyde med at Ibas igjen leverer vekst på linje med 2001 og at forretningsområdet viruskontroll ytterligere har forbedret sin vekst. Viruskontroll med 25% organisk vekst og 23% EBITDA margin Det største forretningsområdet i Norman, viruskontroll, hadde en omsetning på NOK 43,6 millioner i 2. kvartal. Sammenlignet med omsetningen i 2. kvartal 2001 er dette en økning på 25%. EBITDA i perioden var NOK 10,2 millioner hvilket representerer en margin på 23%. Det er spesielt de europeiske landene utenfor Skandinavia som har bidratt til den sterke veksten, og foruten salg av løsninger til SMB-markedet har selskapet også signert nye ISP-avtaler som har gitt gode resultater. Det er sjette kvartalet på rad at Norman leverer sekvensiell høyere organisk vekst og inntjening innen forretningsområdet viruskontroll. Andre kvartal har vært meget utfordrende for hele antivirusbransjen. De ulike variantene av Klez-viruset har vært de verste virus som noen gang har spredd seg og på det meste var hver 30. epost som ble sendt infisert med dette viruset. Viruset benyttet spesielle teknikker for å fjerne antivirusprogramvare på servere og arbeidsstasjoner og benyttet teknikker for massmailing som var meget effektive. Etter et relativt virusfritt 1. kvartal var Klez-viruset et sikkert tegn på at trusselbildet hva gjelder angrep via virus ikke er blitt mindre i 2002. Det viste samtidig viktigheten av å ha effektiv beskyttelse mange steder i infrastrukturen. I tillegg fikk Norman sin syttende 100% award fra den uavhengige testorganisasjonen Virus Bulletin. Selskapet er dermed blant de tre beste leverandørene hva gjelder resultater fra denne eksterne testorganisasjonen. Ibas med sterk vekst utenfor Norden, EBITDA margin på 20% Ibas hadde i 2. kvartal en omsetning på NOK 18,1 millioner. Dette representerer en organisk vekst på 25% sammenlignet med tilsvarende periode i fjor. EBITDA var NOK 3,6 millioner for denne perioden hvilket utgjør en margin på 20%. Veksten kommer i all hovedsak fra de ikke-nordiske landene i Europa. Etableringer som ble gjort i Singapore og Frankrike har gått bedre enn forventet, og begge disse landene leverte positive bidrag. I tillegg har Ibas vært engasjert i forbindelse med Pirelli Tower ulykken i Milano hvor et småfly ødela store deler av et kontorbygg. Ved hjelp av Ibas kompetanse og teknologi ble informasjonen på ca. 30 servere og arbeidsstasjoner rekonstruert. Både dataetterforskning og -sletting har også fortsatt sin gode utvikling i 2.kvartal. Kapitalsituasjonen Norman økte kontantbeholdningen fra NOK 48 millioner til NOK 55 millioner i 2. kvartal 2002. Selskapet har ingen rentebærende gjeld. I kvartalet ble kundefordringer redusert fra 35 til 32 dager. Fremtidsutsikter Markedet for Normans produkter og tjenester er fortsatt bra, og selskapet har som målsetning å vokse mer enn markedet. Dette vil, ifølge analyser fra de ledende analyseselskaper, vokse med 14-15% i 2002. Selskapet vil fortsette sitt sterke fokus på lønnsomhet. For tredje kvartal forventes det en lavere omsetning p.g.a sesongsvingninger i forretningsområdene, men en fortsatt god margin. For 2002 oppjusterer Norman sine vekstforventningene til 20% med en EBITDA margin på minst 20%. Vedlagt følger et sammendrag av resultatregnskap og balanse for 2. kvartal 2002. For ytterligere informasjon, kontakt Svein Ramsay Goli, styreformann (mob + 47 907 56 757) eller Henning Hansen, administrerende direktør (tel + 47 67 10 97 17; mob + 47 908 81 192) / www.norman.no
Norman with 25% revenue growth and 22% EBITDA margin Norman ASA had net revenues of NOK 61.7 million in the 2 nd quarter 2002. This was an increase of 25% compared to the 2 nd quarter 2001. EBITDA for Norman this quarter was NOK 13.7 million, a margin of 22% and an increase from NOK 7 million in the same period last year. The 2 nd quarter was the best quarter that Norman has ever delivered. In this quarter, both of our business units have had a strong revenue growth and very high EBITDA margin, says Henning Hansen, President & CEO of Norman ASA. We were especially satisfied that Ibas was again able to deliver revenue growth in line with 2001, and that virus control was able to improve its growth further. Virus control with 25% organic growth and 23% EBITDA margin Virus control, Norman s largest business unit, had net revenues of NOK 43.6 million in the 2 nd quarter, an increase of 25% compared to 2 nd quarter 2001. EBITDA for the quarter was NOK 10.2 million, a margin of 23%. It was especially the European countries outside Scandinavia that have contributed to this strong growth, and as well as sales to the SMB market, new ISP agreements have also been signed that will give good results. This is the sixth quarter in a row where Norman s virus control business unit has delivered consecutively higher organic revenue growth and profitability. The 2 nd quarter has been an extremely challenging one for the whole anti-virus sector. The various forms of the Klez virus have caused the worst virus proliferation ever, and at its height, one in every 30 e-mails that was being sent was infected with this virus. The virus used special techniques to remove anti-virus software from servers and workstations, as well as massmailing methods that proved to be very effective. After a relatively virus-free 1 st quarter, the Klez virus is a sure sign that the threat of virus attack is no less in 2002. It also shows the importance of having virus protection covering many parts of the infrastructure. In addition, Norman received its seventeenth 100% award from Virus Bulletin, the independent test organisation. Norman is therefore one of the three best vendors when it comes to awards from this external test organisation. Ibas with strong growth outside the Nordic countries, and 20% EBITDA margin In the 2 nd quarter, Ibas had net revenues of NOK 18.1 million, an organic growth of 25% compared to the same period last year. EBITDA was NOK 3.6 million, a margin of 20%. This growth has come mainly from Europe outside of the Nordic countries. The new investments in Singapore and France have given better results than expected and both of these countries were profitable in the 2 nd quarter. In addition, Ibas was engaged to provide services in connection with the Pirelli Tower incident in Milan where a small plane destroyed large parts of an office building. Using Ibas competence and technology, information on about 30 servers and workstations could be recovered. Both computer forensics and ExpertErasure have continued their good development during the 2 nd quarter. Financial situation Norman increased its cash balances from NOK 48 million to NOK 55 million in the 2 nd quarter 2002. The company has no interest-bearing debt and during the quarter the number of days outstanding in accounts receivables was reduced from 35 to 32. Future expectations The market for Norman s products and services continues to be good and the company has the aim of outperforming market growth rates which according to the leading research companies are forecast to be 14-15% in 2002. The company will continue its strong focus on profitability. In the 3 rd quarter it is expected that revenue will be lower because of seasonal factors, but with a good margin. For 2002 as a whole, Norman is upgrading its growth expectations to 20% with an EBITDA margin of at least 20%. Enclosed is a summary of the preliminary financial statements for the 2 nd quarter 2002. For further information, please contact Svein Ramsay Goli, Chairman of the Board (mobile + 47 907 56 757) or Henning Hansen, President & CEO, (office + 47 67 10 97 17; mobile + 47 908 81 192) / www.norman.no
Norman ASA Consolidated income statements (only annual figures are subject to statutory audit) Net revenues 61.701 49.310 119.076 97.529 201.408 Cost of materials 3.132 3.446 6.374 7.201 13.855 Personnel costs 32.026 24.230 62.138 49.068 101.106 Other operating expenses 11.991 14.433 24.990 27.080 55.245 Loss on receivables 819 148 1.002 350 910 Sub-total 47.968 42.257 94.504 83.699 171.116 EBITDA for continuing activities (earnings before interest, tax, depreciation, amortisation) EBITDA margin +13.733 +22% +7.053 +14% +24.572 +21% +13.830 +14% +30.292 +15% Depreciation/amortisation 2.893 2.619 5.511 5.501 10.860 Operating result for continuing activities +10.840 +4.434 +19.061 +8.329 +19.432 Net financial items (see note 1) -615 15-901 -194-451 Result before tax for continuing activities +10.225 +4.449 +18.160 +8.135 +18.981 Result before tax for discontinuing activities (see note 2) - -12.732 - -26.047-72.156 Result before tax +10.225-8.283 +18.160-17.912-53.175 Tax charge/(credit) for continuing activities 773-24 1.668 569 1.604 Tax charge/(credit) for discontinuing activities - - - - -3.379 Minority interest 245 138 670 354 757 Result after tax +9.207-8.397 +15.822-18.835-52.157 Earnings per share + kr 0,87 - kr 0,80 + kr 1,50 - kr 1,79 - kr 4,96
Income statement analysis of Norman ASA s continuing activities by business unit Virus control business unit: Net revenue 43.568 34.847 83.838 67.099 136.157 Cost of materials 2.297 2.055 4.058 4.411 8.804 R&D costs 7.004 5.998 13.953 12.461 25.141 Sales costs 18.238 15.422 35.884 30.165 64.001 Marketing costs 925 1.904 2.850 3.647 6.757 G&A costs 4.174 4.127 7.592 6.677 10.820 Loss on receivables 775 108 958 310 646 Sub-total 33.413 29.614 65.295 57.671 116.169 EBITDA EBITDA margin 10.155 23% +5.233 15% +18.543 22% +9.428 14% +19.988 15% Depreciation/amortisation 1.665 1.599 3.268 3.364 6.544 Operating result +8.490 +3.634 +15.275 +6.064 +13.444 Ibas business unit:: Net revenue 18.133 14.463 35.238 30.430 65.251 Cost of materials 835 1.391 2.316 2.790 5.051 Ibas production costs 5.004 3.463 9.311 7.341 15.143 R&D costs 559 148 920 456 974 Sales costs 5.144 4.950 10.177 9.345 19.096 Marketing costs 1.348 985 2.821 2.045 4.251 G&A costs 1.621 1.666 3.620 4.011 10.168 Loss on receivables 44 40 44 40 264 Sub-total 14.555 12.643 29.209 26.028 54.947 EBITDA EBITDA margin +3.578 +20% +1.820 +13% +6.029 +17% +4.402 14% +10.304 16% Depreciation/amortisation 1.228 1.020 2.243 2.137 4.316 Operating result +2.350 +800 +3.786 +2.265 +5.988 The corporate costs, which were separately classified during 2001, are now being allocated to the virus control and the Ibas business units, and the comparative figures for 2001 presented above have been restated for this.
Norman ASA Consolidated balance sheets (only annual figures are subject to statutory audit) (Figures in NOK 000) 30 Jun 02 30 Jun 01 31 Dec 01 Long term assets Intangible assets 1.768 28.828 2.470 Goodwill 15.181 15.828 13.999 Tangible fixed assets 13.591 13.568 12.467 Deferred tax asset 17.258 17.258 17.258 47.798 75.482 46.194 Current assets Inventory 696 705 780 Accounts receivable 26.598 24.845 23.547 Other short term receivables 8.252 8.573 6.637 Cash 55.095 36.025 43.101 90.641 70.148 74.065 Total assets 138.439 145.630 120.259 Equity Share capital 21.169 105.097 21.156 Own shares -266-266 -266 Share premium reserve 2.308 21.811 2.036 Other paid in capital 662 662 662 Other equity 50.980-36.469 36.560 Minority interest 2.964 1.618 2.022 77.817 92.453 62.170 Long term liabilities Pension liabilities 970 562 1.353 Other long term liabilities 1.556 2.982 2.143 Deferred income long term 2.741 2.411 2.479 Deferred tax liability 93 3.243 66 5.360 9.198 6.041 Current liabilities Bank overdraft 297 225 0 Accounts payable 10.226 7.417 6.830 Taxes payable 2.132 889 677 Payroll tax, VAT, social tax etc 12.837 11.337 12.949 Deferred income - current 9.682 9.137 9.466 Other current liabilities 17.762 14.974 16.383 Restructuring reserve related to discontinued activities 2.326-5.743 55.262 43.979 52.048 Total liabilities and equity 138.439 145.630 120.259 Consolidated statement of equity (only annual figures are subject to statutory audit) (Figures in NOK 000) 30 Jun 02 30 Jun 01 31 Dec 01 Opening balance 62.170 110.947 110.947 Share issue (less: share issue expenses) +285 +327 +2.293 Result after tax +15.822-18.835-52.157 Foreign exchange adjustment -1.402-339 330 Minority interest 942 353 757 Closing balance 77.817 92.453 62.170
Norman ASA Consolidated cashflow statement (only annual figures are subject to statutory audit) (Figures in NOK 000) 1H02 1H01 2001 Cashflow from operating activities Result before tax +18.160-17.912-53.175 Restructuring costs (net of payments) -3.405-32.053 Depreciation / amortisation 5.511 7.057 13.062 Loss on receivables 1.002 1.705 1.990 (Profit)/loss on sale of fixed assets -256-7 -7 Payment of tax -100-396 -1.432 Other items - -17-20 Changes in assets & liabilities (net of the effects of the purchase of companies) Accounts receivable -3.930 2.776 3.575 Inventory 100 339 264 Other operating assets / liabilities 432-994 5.131 Accounts payable 3.396-1.438-2.025 Net cashflow from operating activities +20.910-8.887-584 Cashflow from investing activities Payments for purchase of long term assets -3.517-4.201-7.429 Receipts from sale of long term assets 400 167 229 Payments for shares in subsidiaries (net of cash acquired) -2.143 - - Net cashflow from investing activities -5.260-4.034-7.200 Cashflow from financing activities Receipts from share issue after expenses 285 327 2.293 Changes in bank overdraft & loans -1.846-1.239-2.303 Net cashflow from financing activities -1.561-912 -10 Effect of foreign exchange rate changes -2.095-444 +593 Net changes in cash & cash equivalents +11.994-14.277-7.201 Cash & cash equivalents as at period start 43.101 50 302 50.302 Cash & cash equivalents as at period end 55.095 36.025 43.101 Lysaker, 11 th July 2002 The Board of Directors of Norman ASA Svein Ramsay Goli Chairman About Norman ASA Norman ASA is one of the world s leading companies within the field of information security. Norman offers high-quality products and services within the areas of virus control, personal firewall, encryption, data recovery, data erasure and computer forensic. Today, there are more than 12 million users of Norman`s products worldwide. Norman has 200 employees and is represented by subsidiaries and strategic alliances in USA, Europe and Asia/Pacific. The company has a main listing on the Oslo Stock Exchange and its head office is at Lysaker outside Oslo.
Norman ASA Notes to the consolidated financial statements Note 1: Net financial items (only annual figures are subject to statutory audit) Interest income 387 475 578 899 1.486 Interest expenses 18 74 43 162 309 Financial items - other -984-386 -1.436-931 -1.628 Net financial items -615 15-901 -194-451 Note 2: Result before tax for discontinuing activities (only annual figures are subject to statutory audit) Net revenues - 753-2.496 2.956 Cost of materials - 134-173 205 Personnel costs - 7.191-14.467 18.524 Depreciation/amortisation - 924-1.556 2.202 Other operating expenses - 5.056-10.992 15.442 Loss on receivables - 180-1.355 1.297 Total operating expenses - 13.485-28.543 37.670 Operating result before tax for security solution activities - -12.732 - -26.047-34.714 Restructuring costs: Write-off of intangible assets - - - -25.901 Write-off of other assets - - - -2.903 Accrual for winding up costs - - - -8.638 Total restructuring costs - - - -37.442 Result before tax for discontinuing activities - -12.732 - -26.047-72.156 Norman discontinued its Security Solutions operations with accounting effect from 30 th September 2001. The resulting restructuring costs related mainly to the write off of product rights and other assets as well as the winding up of the three Security Solutions companies in the Czech Republic, Australia and Germany. Other notes to the consolidated financial statements. 1. Discontinuing activities are shown in the consolidated income statement using the one-line method, but are not classified separately in either the consolidated balance sheet or consolidated cash-flow statement. 2. This quarterly report has been prepared in accordance with the same accounting principles that are set out in the annual report for 2001. 3. In the opinion of the company s management and board, there are no other significant note disclosures required in accordance with the draft Norwegian accounting standard for quarterly reports that was issued in November 2001.