June 10, 2008 - The Irish Times

Financial Crime and Compliance solutions company Norkom has posted pretax profits of €4.9 million for the year ended March 31st, 2008, up nearly 12 per cent from €43.3 million on the same period last year.

Revenues at the Dublin-cased company jumped 64 per cent to €41 million, helped by the acquisition during the year of US company Digital Harbor and strong organic growth.

"The Digital Harbor acquisition contributed around 12 per cent to sales but jusr €0.1 million to operational profit and hence the underlying growth in earnings was a function of the organic business, " noted Goodbody analyst Gerry Hennigan.

Digital Harbor has been brought to profitability from €5 million loss when it was acquired eight months ago, said Norkom chief executive Paul Kerley.

North American revenue rose by 111 per cent year on year to €17.3 million, and its Asia Pacific business delivered €4.5 million revenue in its first full year of operations. Revenue in Ireland, Britain and the rest of the world rose by 17 per cent to €9 million, while European revenues increased by 12 per cent to €10.2 million.

Licence revenue grew by 8% per cent to €12.1 million, professional services grew by 58 per cent to €25.6 million, while post-contract supply grew by 46 per cent to €3.3 million.

"These are key contributors to the overall gross profit increase by 66 per cent to €27 million, and are a result of a continued stronger licence mix within our deal structures, " the company said.

Mr Kerley said the weak dollar had seen sales lose €1.6 million of their value and €0.6 million knocked off operating profit, but business was not adversely affected by the subprime crisis and turmoil on the financial markets.

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