Interim Results for the 6 months ended 30 September 2007

Norkom has announced a 53% increase in revenue to €17.6 million and a 50% improvement in EBITDA (Earnings before interest, tax, depreciation and amortisation) to €3.1 million for the half year ended 30 September 2007 (2007). This period has included the acquisition of Digital Harbor on 31 July 2007 for €26.7 million (US$36.5 million) (excluding acquisition costs).

The Group has executed on its previously stated M&A strategy whilst continuing to deliver strong organic revenue growth of 45% in 2007. This has resulted in the addition of 19 new clients in 2007, nine of which stem from organic growth combined with ten clients coming from Digital Harbor mainly from the tier one US financial services sector.

Norkom’s strong performance has been attributed to good sales success particularly in North America and also the addition of revenue from our Asia Pacific region in this period.

The company reports the following key financial highlights:

• Revenue up 53% to €17.6 million; (2006: €11.5 million)
• Gross profit margin increased to 66%; (2006: 65%) 
• EBITDA up 50% to €3.1 million (18% margin); (2006: €2.1 million, 18% margin) 
• Adjusted EPS up 54% to 3.35 cents; (2006: 2.17 cents)
• Net cash balance at 30 September 2007 of €21.7 million; (2006: €26.4 million)
• Successful placing raising €15.5 million to part-fund acquisition of Digital Harbor for €26.7 million (US$36.5 million)
• Net cash inflow from operating activities increased to €3.0 million (2006: €1.7 million)

Key business highlights for the half year included the following:

• Norkom acquired Digital Harbor in July 2007 whilst also delivering on its strategy of organic growth with profits. 
• Following a review of Digital Harbor’s business, Norkom has reached agreement with the Digital Harbor founder to transfer the government business into a separate entity in which Norkom will make a €2.15 million (US$3.15 million) investment.
• Norkom’s market franchise continues to rise with 19 new clients added during the period including Washington Mutual, Union Bank of California, Permanent TSB, Westpac, Bendigo Bank and St George.
• Norkom is evolving its partner channel strategy and has established new relationships with IBM, eFunds and Bearing Point in the period, to add to existing relationships with Capgemini and Accenture.
• Norkom has gained market recognition as an effective enterprise-wide financial crime management solution provider most recently by the analysts, Gartner.

For More Information

• To read the full Interim Results press release please click here
• For a full copy of Norkom's Interim Results Report for 6 months ended 30 September 2007 please click here
• For a full copy of Norkom's Annual Report for 12 months ended 31 March 2007 please click here
• To read the full Annual Results press release please click here
• To read the Annual Results Chairman's Letter to Shareholders please click here
• For a full copy of Norkom's Interim Results Report for 6 months ended 30 September 2006 please click here