Irish Independent - 11 November 2009

Financial software firm Norkom posted a 2pc rise in revenue to €24.6m for the six months to the end of September, it said yesterday. Earnings were 8pc higher at €4.3m and the largest chunk of revenue growth was recorded in Europe.

Releasing the figures yesterday, Norkom chief executive Paul Kerley said that while the company had experienced a tough environment during the global banking fallout that started last year, the firm had emerged in a strong position and expected to secure a bigger slice of the returning market demand for its type of products.

The company added that there are still delays in decision-making among its potential client base in the US and UK, but that there is increased buyer activity and that purchase decisions could resume during the first six months of 2010. Shares in the company, which employs about 340, jumped over 9pc yesterday in Dublin to end the session at €1.20. Banks such as HSBC, Standard Chartered, and Banque Populaire use Norkom's software to meet compliance standards and prevent fraud.

The Irish company has also expanded its presence into the Middle East. Among its former clients was US-based Washington Mutual (WaMu), the lender that collapsed in September last year.

Earnings

Norkom said that its earnings before interest, tax, depreciation and amortisation (EBITDA) were 8pc higher at €4.3m during the six months to the end of September compared to the same period last year, with post-contract support revenue up 46pc to €3.3m.

Adjusted diluted earnings per share were 7pc higher at 4.22 cent.

Goodbody Stockbrokers analyst Gerry Hennigan said that the earnings figure at Norkom was better than expected and yesterday boosted his 2011 revenue and EBITDA forecasts for the company by 3pc and 4pc respectively.

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