Press release Norman ASA 2nd quarter 2009 Lysaker, Stable development for Norman Norman ASA, the data security company, today announced its second quarter 2009 results. Sales revenue ended at NOK 67.2 million, which represent a 12% increase from the same quarter in 2008. EBITDA was NOK 5.0 million, up from NOK 1.7 million the previous year. The EBITDA margin for the second quarter was 7%, compared to 3% the same quarter last year.
Stable development for Norman Norman ASA, the data security company, today announced its second quarter 2009 results. Sales revenue ended at NOK 67.2 million, which represent a 12% increase from the same quarter in 2008. EBITDA was NOK 5.0 million, up from NOK 1.7 million the previous year. The EBITDA margin for the second quarter was 7%, compared to 3% the same quarter last year. Norman s profit before tax for the second quarter ended at NOK 3.5 million, up from NOK 0.6 million the previous year. For the first half of 2009, Norman posted sales revenues of NOK 142.3 million, which is an 11% growth over last year s first half sales revenues of NOK 127.9 million. EBITDA for the first six months came in at NOK 19.9 million, compared to NOK 8.7 million last year. The results correspond to an EBITDA margin of 14% for the first six months. Pre-tax profit ended at NOK 17.1 million, up from NOK 5.8 million last year. The financial results for the first half have been affected positively by currency fluctuations. Core Security Norman released its new core product Norman Endpoint Protection (NPRO) in the second quarter. NPRO represents the next generation Norman management tool with improved features, functionality and scalability. NPRO s main customer groups are small and medium sized enterprises. NPRO is now being marketed and the initial response from the market has been good. In the second quarter Norman signed a two way agreement with the US security vendor Lumension. According to the agreement, Lumension will include Norman s Endpoint Protection products in its software offering under its own label. Lumension s current software portfolio includes solutions for vulnerability assessment, patch management as well as application and device control. Lumension s offering is a natural extension of Norman s security solutions and will under the agreement be rebranded Norman and included in Norman s product portfolio. The agreement with Fujitsu Siemens Computer related to bundling of Norman products in EMEA was terminated in the second quarter. The reason for the termination was lack of revenue generated after the 90 day free trial period. OEM Norman s OEM business saw a more turbulent development in the second quarter. The Microsoft OEM agreement has been renewed for another 3 year term, but a less favourable royalty model will be implemented. Furthermore, F-secure, another significant OEM agreement for Norman has been terminated, effective from the third quarter. Consequently, Norman expects significantly reduced OEM revenue going forward. Network Protection In the Network Protection business area, the initiatives continue at building distribution channels for the Norman Network Protection product (NNP) into various verticals markets like ECM, production and education. The business area saw a steady positive development in the second quarter, also with new positive reviews in SC Magazine, UK and winning the 2009 Best Products and Services Award by the Network Products Guide. Advanced Malware Analyzers The business area Advanced Malware Analyzers saw a slowdown in the second quarter, due to the international economic crisis. No cancellations were filed, however a number of customers indicated that renewals has been postponed. Budgets are currently tight at a number of large enterprises, limiting the number of new sales in the second quarter. However, a number of customers suggest that their position is expected to be more positive in their new financial year which commences in Norman s third quarter. Finance Norman s financial position remains strong. The company has no interest bearing debt. Total cash at the end of the quarter amounted to NOK 84.2 million, which is down from NOK 104.8 million at the end the first quarter. Norman paid its shareholders a dividend of NOK 24.3 million in the quarter. Norman faces no particular risk beyond what is considered normal for an international IT company. The Company operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to EUR, CHF and USD. No transactions involving closely related parties having a significant impact on the Company s financial position have occurred in the first half of 2009. The Company had 192 employees at the end of the second quarter (186 employees 12 months previously). Offer for Norman At the end of the second quarter FSN Capital III Limited Partnership, through its subsidiary Ola Holding AS, announced its intention to submit an offer for all outstanding shares in Norman ASA at a price of NOK 28 per share. At the same time, Ola Holding announced that it had purchased Norman shares bringing its ownership to 67.81%. Outlook The outlook for the near future is somewhat uncertain, due to lower OEM revenues and the general market situation, in particular in the United States. However, this uncertainty is expected to be partly offset by the sales opportunities created by the NPRO release and traction in the NNP sales. In the longer perspective, Norman is well positioned for increased sales. The world s security threats continue to grow and the attacks become even more professional and targeted. The need for sophisticated security solutions is expected to remain high. ****************************** Enclosed is a summary of the interim financial statements for the second 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)
Stabil utvikling for Norman Datasikkerhetsselskapet Norman ASA hadde salgsinntekter på 67,2 millioner kroner i andre kvartal, en økning på 12% fra samme periode i fjor. EBITDA-resultatet ble 5,0 millioner kroner, opp fra 1,7 millioner kroner i fjor. EBITDAmarginen for andre kvartal ble 7%, opp fra 3% i samme periode i fjor. Norman s resultat før skatt ble 3,5 millioner kroner i andre kvartal, opp fra 0,6 millioner kroner året før. For første halvår 2009 hadde Norman salgsinntekter på 142,3 millioner kroner, en økning på 11% fra første halvår i fjor, da salgsinntektene var 127,9 millioner kroner. EBITDAresultatet for de første seks månedene ble 19,9 millioner kroner, sammenlignet med 8,7 millioner kroner i fjor. Halvårets resultat tilsvarer en EBITDA-margin på 14% for de første seks månedene. Resultat før skatt endte på 17,1 millioner kroner, opp fra 5,8 millioner kroner i fjor. Norman s halvårsresultat ble positivt påvirket av valutaendringer. Core Security Norman lanserte sitt nye hovedprodukt Norman Endpoint Protection (NPRO) i andre kvartal. NPRO representerer neste generasjon Norman administrasjonsverktøy med forbedret funksjonalitet og skalerbarhet. NPROproduktet er primært rettet mot små og mellomstore virksomheter. NPRO er nå sluppet til markedet og de foreløpige tilbakemeldinger fra markedet er oppløftende. I andre kvartal inngikk Norman et toveis samarbeid med den amerikanske sikkerhetsleverandøren Lumension. I henhold til avtalen vil Lumension inkludere Norman s Endpoint Protection product under sitt eget navn i sin produkt portefølje. Lumensions egen produktportefølje inkluderer løsninger for å vurdere datasystemers sårbarhet, patch management og policy styrings systemer. Lumensions produkter er en naturlig forlengelse av Normans sikkerhetsløsninger, og vil som en del av avtalen bli inkludert i Normans sikkerhetstilbud. Avtalen med Fujitsu Siemens Computers, hvor Norman s software ble preinstallert på alle PC er i EMEA ble kansellert i andre kvartal. Kontrakten ble kansellert grunnet manglende inntekter generert etter utløpet av gratis perioden på 90 dager. OEM Norman s OEM-virksomhet hadde en mer turbulent utvikling i andre kvartal. Microsoft besluttet å videreføre samarbeidet med Norman for 3 nye år, men med en mindre innbringende inntektsmodell for Norman. Videre har F-Secure, som også bidrar med betydelige OEM inntekter kansellert sin kontrakt med Norman, med effekt fra tredje kvartal. Følgelig forventer selskapet betydelig lavere OEMomsetning i tiden som kommer. Network Protection Innen forretningsområdet Network Protection fortsatte arbeidet med å bygge distribusjonskanaler for Norman Network Protection (NNP) til ulike vertikaler som ECM, produksjon og utdannelse. Forretningsområdet så en jevn og positiv utvikling i andre kvartal, med positive anmeldelser i SC Magazine i UK og ved å vinne 2009 Best Product and Services Award hos Network Products Guide. Advanced Malware Analyzers Forretningsområdet Advanced Malware Analyzers hadde en svakere utvikling i andre kvartal, hovedsakelig på grunn av den økonomiske krisen. Ingen oppsigelser ble mottatt, men flere kunder varslet at fornyelser ville bli utsatt. Flere selskaper har stramme IT-budsjetter for tiden, noe som begrenset salget i andre kvartal. Imidlertid indikerer mange kunder at situasjonen forventes å bli noe mer positiv i deres nye finansielle år, hvilket starter i Norman s tredje kvartal. Finans Normans finansielle stilling holder seg sterk. Selskapet har ingen rentebærende gjeld. Kontantbeholdningen ved utgangen av kvartalet var 84,2 millioner kroner, en nedgang fra 104,8 millioner kroner ved utgangen av foregående kvartal. Norman betalte utbytte til aksjonærene på 24,3 millioner kroner i andre kvartal. Med unntak av selskapets valutaeksponering, besitter ikke Norman risiki ut over hva som er vanlig for et internasjonal IT-selskap. Selskapet har inntekter og utgifter i en rekke valutaer, særlig EUR, CHF og USD, og er dermed eksponert for svingninger i disse valutaene. Valutarisikoen refererer seg til fremtidige forretningsmessige transaksjoner, fastsettelse av selskapets eiendeler og forpliktelser i balansen samt investeringer i utenlandske valutaer. Ingen transaksjoner foretatt av nærstående som har vesentlig betydning for selskapets finansielle stilling er foretatt i første halvår. Selskapet hadde 192 ansatte ved utgangen av andre kvartal (186 ved utløpet av fjorårets andre kvartal). Tilbud på Norman På slutten av andre kvartal offentliggjorde FSN Capital III Limited Partnership, gjennom sitt datterselskap Ola Holding AS, en intensjon om å fremme et bud på alle utestående aksjer i Norman ASA til en kurs av 28 kroner per aksje. Samtidig annonserte Ola Holding at man hadde kjøpt aksjer i Norman tilsvarende en eierandel på 67,81 prosent. Utsikter Utsiktene i nær fremtid er usikre grunnet forventet lavere OEMinntekter og den generelle markedssituasjonen, særlig i USA. Imidlertid forventes denne usikkerheten å bli delvis utlignet gjennom de mulighetene som lanseringen av NPRO har skapt og adoptering av NNP i markedet. I et lengre perspektiv er Norman godt posisjonert for økt salg. Sikkerhetstruslene fortsetter å vokse og angrepene blir stadig mer profesjonelle og målrettede. Behovet for avanserte sikkerhetsløsninger forventes å forbli høy. ****************************** Vedlagt følger et sammendrag av resultatregnskap og balanse for andre kvartal 2009.For ytterligere informasjon, kontakt: Styreformann: Svein Ramsay Goli (9075 6757) CEO: Trygve Aasland (4153 9717) CFO: Simen Nyberg Hansen (9820 6355)
Norman ASA Condensed consolidated interim income statement, unaudited (Figures in NOK 1 000s) Note 2Q09 2Q08 1H09 1H08 Sales revenue 67 180 59 965 142 303 127 890 Other operating income 8 1 909 2 631 4 108 5 421 Net revenue 69 089 62 596 146 411 133 311 Sales revenue - % growth from previous year 12% -3% 11% -2% Cost of goods sold 7 398 7 592 15 928 16 821 Personnel expenses 36 467 30 148 73 481 64 984 Other operating expenses 19 357 22 050 38 022 41 208 Other losses/(gains) 211 537-1 639 831 Loss on receivables 688 543 755 775 Sub-total 64 121 60 870 126 547 124 619 EBITDA EBITDA margin 4 968 7% 1 726 3% 19 864 14% 8 692 7% Depreciation and amortization 1 692 2 072 3 693 4 161 Operating profit (EBIT) 3 276-346 16 171 4 531 Interest income 239 979 961 1 295 Interest expenses 8 2 10 6 Profit before tax 3 507 631 17 122 5 820 Income tax 717 36 3 448 1 490 Profit for the period 2 790 595 13 674 4 330 Attributable to: Equity holders of the company 2 790 1 042 13 674 4 199 Minority interests 0-447 0 131 2 790 595 13 674 4 330 Earnings per share for profit attributable to the equity holders of the company Earnings per share basic and diluted NOK 0.29 NOK 0.11 NOK 1.40 NOK 0.43
Norman ASA Condensed consolidated interim balance sheet, unaudited (Figures in NOK 1 000s) Note 30 Jun 09 31 Dec 08 ASSETS Non-current assets Intangible assets 7 15 801 15 660 Goodwill 44 981 49 005 Property, plant and equipment 6 505 5 559 Deferred tax asset 33 384 33 384 100 671 103 608 Current assets Inventory 2 544 4 030 Trade receivables 26 393 29 743 Other current receivables 9 581 7 002 Cash 84 163 101 456 122 681 142 231 Total assets 223 352 245 839 EQUITY Capital and reserves attributable to the company s equity holders Share capital 3 772 3 772 Treasury shares -25-25 Other equity 19 525 30 184 Other contributed equity 1 062 799 Cumulative translation adjustment 345-177 Total equity 24 679 34 553 LIABILITIES Non-current liabilities Deferred income non-current 37 524 38 892 Current liabilities Trade and other payables 8 637 13 595 Current income tax liabilities 4 313 1 305 Payroll tax, VAT, social tax, etc 8 313 9 970 Deferred income current 114 840 123 007 Other current liabilities 25 046 24 517 161 149 172 394 Total liabilities 198 673 211 286 Total equity and liabilities 223 352 245 839 Lysaker, July 9 th 2009 Svein Ramsay Goli Chairman of the Board of Directors Norman ASA
Norman ASA Condensed consolidated interim statement of cash flows, unaudited (Figures in NOK 1 000s) Jan-Jun 09 Jan-Jun 08 Cash flow from operating activities Profit before tax 17 122 5 820 Depreciation and amortization 3 693 4 161 Calculation of share option expenses 263 728 Loss/(profit) on receivables 755 775 Payment of tax -478-4 443 Changes in assets & liabilities Accounts receivable 2 442-9 819 Inventory 1 486-2 227 Other operating assets / liabilities -1 679 2 529 Accounts payable -4 958 4 426 Net cash flow from operating activities 18 646 1 950 Cash flow from investing activities Payments for purchase of non-current assets -5 138-4 032 Net cash flow from investing activities -5 138-4 032 Cash flow from financing activities Payment of dividend -24 333-29 260 Net cash flow from financing activities -24 333-29 260 Effect of foreign exchange rate changes -6 468 1 819 Net changes in cash & cash equivalents -17 293-29 523 Cash & cash equivalents as at 01.01 101 456 108 189 Cash & cash equivalents as at 30.06 84 163 78 666
Condensed consolidated interim statement of changes in equity, unaudited (Figures in NOK 1 000s) Share capital Treasury Shares Other contributed equity Other equity Cumulative transl. adjustment Minority interest Total equity Balance as at 1.1.08 3 772-17 -289 2 595 3 687 3 918 13 666 Currency translation differences - - - - -61 20-41 Net income/(expense) recognized directly in equity - - - - -61 20-41 Profit for the year - - - 4 199-131 4 330 Total recognized income for 1H08 - - - 4 199-61 151 4 289 Dividend paid to equity holders - - - -29 260 - - -29 260 Employee share option scheme; value of services provided - - 728 - - - 728 - - 728-29 260 - - -28 532 Balance as at 30.06.08 3 772-17 439-22 466 3 626 4 069-10 577 Balance as at 1.1.09 3 772-25 799 30.184-177 - 34.553 Currency translation differences - - - - 522-522 Net income/(expense) recognized directly in equity - - - - 522-522 Profit for the year - - - 13 674 - - 13 674 Total recognized income for 1H09 - - - 13 674 522-14 196 Dividend paid to equity holders - - - -24 333 - - -24 333 Employee share option scheme; value of services provided - - 263 - - - 263 - - 263-24 333 - - -24 070 Balance as at 30.06.09 3 772-25 1 062 19 525 345-24 679
Norman ASA Notes to the condensed consolidated interim financial statements, unaudited Note 1: Reporting entity Norman ASA (the Company ) is a company domiciled in Bærum, Norway. These June 2009 condensed consolidated interim financial statements of Norman ASA and its subsidiaries (together the Group or Norman ) are for the six months ended June 30 th 2009. The consolidated financial statements of the Group as at and for the year ended December 31 st 2008 are available upon request from the Company s registered office at Strandveien 37, Lysaker, or at www.norman.com. Note 2: Statement of compliance These condensed consolidated interim financial statements of the Group have been prepared in accordance with rules and regulations from Oslo Stock Exchange and International Financial Reporting Standard (IFRS) IAS 34, Interim Financial Reporting. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended December 31 st 2008. These condensed consolidated interim financial statements were approved by the Board of Directors on July 9 th 2009. Note 3: Significant accounting policies These condensed consolidated interim financial statements have been prepared under the historical cost convention. They have been prepared under the same accounting principles as those set out in the consolidated financial statements of the Group as at and for the year ended December 31 st 2008. Note 4: Estimates The preparation of interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these condensed consolidated interim financial statements, the significant judgments made by management in applying the Group s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended December 31 st 2008. Note 5: Segment reporting IAS 14 requires segmental reporting on both a primary and secondary basis. Business segment is the primary reporting format for the Group, as products and services represent the predominant source and nature of risks and returns. Norman is a niche player specializing in development, marketing and sales of data security software products and operates only within one primary segment. Norman s secondary segment is geographical segments. The geographical split of net revenues, total assets and capital expenditures is as follows: Norway Switzerland Benelux Other Europe North America (Figures in NOK 1 000s) 2Q09 2Q08 2Q09 2Q08 2Q09 2Q08 2Q09 2Q08 2Q09 2Q08 Sales revenue 8 572 11 269 13 123 11 113 16 835 11 738 21 922 21 451 6 728 4 394 Capital expenditures 3 098 1 480-38 - - 206 478 44 16 Norway Switzerland Benelux Other Europe North America (Figures in NOK 1 000s) 1H09 1H08 1H09 1H08 1H09 1H08 1H09 1H08 1H09 1H08 Sales revenue 20 407 23 376 26 633 22 406 35 377 27 559 45 423 45 822 14 463 8 727 Total assets 151 763 84 792 15 804 11 370 35 167 57 107 14 786 22 663 5 832 3 056 Capital expenditures 4 537 3 275 9 38 126-422 683 44 36 Transactions with Group companies are eliminated.
Norman ASA Notes to the condensed consolidated interim financial statements, unaudited Note 6: Income statement analysis Expenses can be presented either by the nature of expenses or by their function. Norman has decided to classify expenses by nature on the face of the income statement, but will for information purposes also specify expenses by business function. (Figures in NOK 1 000s) Note 2Q09 2Q08 1H09 1H08 Sales revenue 67 180 59 965 142 303 127 890 Other operating income 8 1 909 2 631 4 108 5 421 Net revenue 69 089 62 596 146 411 133 311 Sales revenue - % growth from previous year 12% -3% 11% -2% Cost of goods sold 7 398 7 592 15 928 16 821 R&D expenses 12 455 11 973 24 999 24 035 Sales expenses 32 022 29 900 63 488 60 573 Marketing expenses 4 189 3 563 8 138 6 453 G&A expenses 7 158 6 762 14 878 15 131 Other losses/(gains) 211 537-1 639 831 Loss on receivables 688 543 755 775 Sub-total 64 121 60 870 126 547 124 619 EBITDA EBITDA margin 4 968 7% 1 726 3% 19 864 14% 8 692 7% Depreciation and amortization 1 692 2 072 3 693 4 161 Operating profit (EBIT) 3 276-346 16 171 4 531 Note 7: Intangible assets During 2nd quarter 2009, Norman has capitalized NOK 1.5 million (2Q08: NOK 1.2 million) in development costs related to the development of new products (1H09: NOK 3.0 million, 1H08 2.4 million). Note 8: Other operating income In 2007 Norman received EUR 4.9 million from entities controlled by the management shareholders in Norman ASA s Dutch subsidiary Norman Shark BV. The background for the income is that the management shareholders and companies controlled by them have withheld revenue from the Group that should have been booked in the Group. In Norman s financial statements, an amount of NOK 21.1 million was booked as "other operating income" in 2007 and NOK 10.2 million in 2008. In the second calendar quarter of 2009 NOK 1.9 million is booked as "other operating income" (2Q08: NOK 2.6 million). ************************************************************************************************** Responsibility Statement We confirm to the best of our knowledge that the condensed set of financial statements for the period 1 January to 30 June 2009 has been prepared in accordance with IAS 34 `Interim Financial Reporting` and gives a true and fair view of the Group`s assets, liabilities, financial position and result for the period viewed in their entirety, and that the interim management report includes a fair review of any significant events that arose during the six-month period and their effect on the half-yearly financial report, any significant related parties` transactions, and a description of the principal risks and uncertainties for the remaining six months of the year. Lysaker, July 9 th 2009 On behalf of the Board of Directors Svein Ramsay Goli Chairman of the Board of Directors
Quarterly developments 90 80 70 60 50 40 30 20 10 0 Revenues (MNOK) 1Q07 3Q07 1Q08 3Q08 1Q09 80 75 70 65 60 55 50 45 40 Quarterly revenues yoy (MNOK) 1Q07 1Q08 1Q09 2Q07 2Q08 2Q09 3Q07 3Q08 3Q09 4Q07 4Q08 4Q09 Gross profit margin EBITDA (MNOK) 90 % 88 % 20 15 86 % 84 % 10 82 % 80 % 78 % 1Q07 3Q07 1Q08 3Q08 1Q09 5 0 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 *4Q08 ex. gain on acquisition of NOK 41.7 million EBIT (MNOK) 20 15 10 5 0-5 1Q07 3Q07 1Q08 3Q08 1Q09 *4Q08 ex. gain on acquisition of NOK 41.7 million