NorCom Information Technology AG
ots Ad hoc-Service: NorCom Info.Techn. <DE0005250302> NorCom Growth Leaps Ahead
In the black despite expansion Management team reinforced
München (ots Ad hoc-Service) -
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Both of NorCom's divisions continued to grow dynamically between January and September 2000. At EUR 24.7 million, revenues were up 181% year-on-year, and third-quarter revenues alone were slightly higher than the entire first-half total. The E-Security and E-Business Solutions divisions each contributed roughly 50% to total revenues. Excluding the two acquired consulting and project companies - NSA (Norske Systemarkitekter AS) and Value & Risk Engineering, which were consolidated for the first time this year - revenues from the core business of NorCom's two divisions were up roughly 100%. The success of the company's internationalization strategy is reflected in the increase in foreign revenues. Foreign business now accounts for about 50% of total consolidated revenues. The opening of a US office in San Jose in August of this year created a further key base for the company's international expansion, and is expected to spur growth further.
Internationalization strategy stepped up
Providing standard technologies internationally with minimum time to market is one of the greatest challenges facing NorCom. At added expense, the company has set up a go-to-market model for establishing its core NorCom Global Security (NGS) technology in the market. The company expects the result to be faster penetration in the German and international security market. NorCom's acquisition and product strategy aims to produce strong growth via acquisitions and business alliances. The
company is tapping distribution channels inside and outside Germany, contributing its security skills and technology as added value for shared strong growth. This approach is laying the foundation for the future. The swift pace of NorCom's internationalization and expansion strategy is associated with higher legal and consulting outlays, as well as expenditures to ensure that acquisitions are speedily integrated. These expenses will temporarily weigh on EBIT. Even so, with net earnings of some EUR 150,000 for January through September 2000, the company is still operating at a profit. Cash flow amounted to roughly EUR 30 million on September 30, 2000. Thus NorCom has a solid financial base for future capital spending and for implementing its expansion plans.
Jörn Kristiansen joins NorCom management board
Effective immediately, Jörn Kristiansen (46) will join the management board of NorCom AG. As co-CEO, Mr. Kristiansen acts as vice-chairman of the management board and is in charge of European business operations. NorCom CEO and co-founder Viggo Nordbakk will continue to take responsibility for global corporate strategy, and will be devoting more time in the future to the company's international acquisition strategy. NorCom's restructuring is laying the foundation for competitiveness in the international market, and will establish a basis for continuing dynamic growth. With the appointment of Jörn Kristiansen, NorCom AG has gained an executive with years of experience in taking sole responsibility for reengineering and business process optimization at such world-renowned companies as Norsk Hydro and Siemens. A Norwegian by birth, Mr. Kristiansen has expertise in not only technological management but upper-management and organizational duties. "I'm looking forward to my new job of guiding NorCom successfully to a position as a global player. The first step will be to restructure our organization so the group is ready for the vigorous growth we've planned for the next few years," says Mr. Kristiansen about joining NorCom. As part of the reshuffling of management, Ulf Lindquist, who has headed the Technology section very successfully for more than ten years, will change over to an advisory position as of January 1, 2001, devoting more attention in the future to research and development for NorCom technologies. "We want to thank Ulf Lindquist for his outstanding service, which has made an indispensable contribution to NorCom's growth, and we are pleased that he will continue to assist us with his advice in his new position," explained NorCom CEO Viggo Nordbakk.
For further information please contact: NorCom Information Technology AG Investor Relations Stefan-George-Ring 6 D-81929 München Fon +49-89-939 48 140 / 150 Fax +49-89-939 48 123
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