ots Ad hoc-Service: NorCom Info.Techn.
NorCom with strong revenues growth in the first half of 2000
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Munich (ots Ad hoc-Service) -
Revenues up 112% - substantial contribution to growth by all divisions
Munich, August 23, 2000 --- NorCom Information Technology AG extended its pioneering role in the e-business and e-security market in the first half of 2000, continuing its already strong first-quarter performance in the second quarter of the year. Revenues in the first half of the year rose by over 112% year-on-year to approx. EUR 12.3 million. The E-Business Solutions division accounted for 35% of this, with the E-Security division contributing 65%. As a full-chain supplier, NorCom grew substantially in all three sectors - products, projects and consulting.
Earnings 28% higher in spite of additional spending
Spending on setting up sales and marketing structures and extending the Company's facilities in Munich and Frankfurt provided a key basis for NorCom AG's planned strong growth. In spite of the related costs, first-half earnings came to just under EUR 378,000, up roughly 28% over the first half of 1999. Staff numbers at NorCom increased by 116% to 190, testifying to the Munich-based security specialist's appeal as an employer in the tight market for IT staff. Key milestones in the second quarter include the acquisition of companies and corporate holdings in Germany, Scandinavia and Italy. The decision to very largely finance the acquisitions by means of stock swaps and non-cash capital increases has helped NorCom to retain its very good balance-sheet structure and cash flow: as at June 30, 2000, it had a cash flow of approx. EUR 32 million,providing an excellent basis for the Company's future expansion.
NorCom boosting US operations
In the second half of 2000, NorCom will be pursuing its globalization activities and its strategy to position itself on an international level more quickly than originally planned. In particular, the focus will be on the swift establishment of US operations (which were commenced on August 1 of this year) and rapid forays into the US market via top-technology partners such as BEA. The flagship NorCom Global Security (NGS) product will be extended to make it the leading e-security platform to meet the heightened security requirements of electronic portals and virtual market places in the future.
Activities aimed at gaining market share swiftly in the highly interesting US market will necessitate greater start-up costs, international sales and marketing campaigns and the cost of technological integration. This additional spending will form the basis for ensuring quicker growth and gaining the international technological leadership in the still young e- security market. In spite of high spending on NorCom's international positioning profit for the year as a whole will be slightly positive. The Munich-based security company is harnessing mounting awareness of security requirements to ensure very dynamic revenues growth. Demand will increase sharply not only in product business but across the entire consulting area. As a result, NorCom projects triple-digit revenues growth for the year as a whole.
Approx. 3.200 characters For further information please contact: NorCom Information Technology AG Bettina Kraus - press Stefan-George-Ring 6 D-81929 München Fon +49-89-939 48 140 Fax +49-89-939 48 123 email@example.com
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