NorCom Information Technology AG, Munich. Interim Report for the 1st half of 2006

Transcription

1 2006 NorCom Information Technology AG, Munich Interim Report for the 1st half of 2006

2 NorCom Information Technology AG at a glance IFRS Group indicators Jan-Jun 2006 Jan-Jun 2005 Revenues 13,144,811 12,374,916 EBITDA 1,200,568 1,472,229 Operating profit (EBIT) 849,326 1,079,302 EBIT as a % of revenues 6 9 Net income/loss for the year 291, ,113 Earnings per share 1 (basic) Average number of employees Number of shares 10,620,443 Table of contents Page Content 2 NorCom at a glance / table of contents 3 Business performance in the 1st half of Corporate governance bodies including shares and options held by members of the boards as well as options held by employees 8 Consolidated Financial Statements pursuant to IFRS 2

3 BUSINESS PERFORMANCE in the 1st half of 2006 NorCom Information Technology AG Sales In the first half of the year, NorCom Information Technology AG achieved consolidated sales of around 13.1 million, an increase of some 6 percent over the previous year ( 12.4 million). At 13.4 million, consolidated total revenues were also roughly 6 percent up on the year-ago figure of approx million. Orders Given the Group's favorable project situation, orders exceeded the year-ago level, rising by around 7% to 19.6 million as of June 30, 2006 (H1/2005: 18.3 million). NorCom was able to report a major success with the award of a comprehensive contract concerning a project for the German Federal Job Agency (Bundesagentur für Arbeit) involving support services for IT operations. As part of this project, which entails over 200 man/years (spread over three contractors), the services to be provided comprise the planning, production and implementation of design models as well as activities aimed at ensuring the availability of core processes in the Operations and Infra-structure segment of the Agency's IT department. In response to this project, NorCom has established a further office in Nuremberg to additionally extend its consulting activities and to ensure more effective service for this customer. As part of efforts to extend its range of products to include integrated IT solutions and knowledge-based products for multimedia content, the NorCom Group has tapped new markets and business potential. According to Frost & Sullivan, the global broadcasting/ media market is set to grow to around 1 billion over the next three years. Looking forward, many companies will require solutions to manage their multimedia content. With the NCPower product suite, the NorCom Group is well positioned in this market. One key milestone in the marketing efforts for the NCPower product suit was achieved in the first quarter with the signing of a contract with the Norwegian Broadcasting Corporation (NRK) for the installation of a new type of comprehensive digital music archive. This system is, for example, being used to digitalize 1.3 million CDs and store them as files on servers. With this contract from the Norwegian Broadcasting Corporation, NorCom is reinforcing its leading position in the market for multimedia content management systems. German broadcaster Deutschlandradio also awarded NorCom a contract in June of this year. By supplying this web-based news distribution system based on NCPower, NorCom is offering Deutschlandradio a cost-efficient solution providing external correspondents and in-house editorial staff with remote access to a whole array of content from anywhere in the world. At the world's largest media industry exhibition held in April of this year (NAB in Las Vegas), NorCom unveiled the Apple Content Management Production System for the first time. As a result, it is the world's first company to offer a completely Apple-based TV and media production solution at prices around 60% below those of comparable systems. The NorCom Apple Content Management Production System is an end-to-end solution for TV and radio broadcasters, agencies and post-production specialists. Now everyone from graphic designers to journalists can benefit from a single integrated user interface for the production of multimedia content. There is global customer potential for this product of over 500,000 users, equivalent to theoretical sales potential of 100 million. 3

4 NorCom and Apple organized a comprehensive broadcasting integration road show spanning 16 European cities to ensure successful placement of NC Power MAC in the market. Indeed, the Company has already achieved preliminary success, with the new Internet TV broadcaster Deutsches Anleger Fernsehen DAF, a subsidiary of Kulmbacher Börsenmedien AG, opting to use the Mac-based NCPower product, as reported in a press release dated June 27, Earnings Earning before interest, tax, depreciation and amortization (EBITDA) came to around 1.2 million, down on the year-ago figure of 1.5 million. In the period under review, earnings before interest and tax (EBIT) reached roughly 0.8 million (previous year: 1.1 million). The decline in earnings in the first half of 2006 is primarily due to heightened capital spending on product business. However, net consolidated income for the period rose sharply, coming to around 0.3 million (previous year: 0.2 million), thanks to reduced tax burdens and smaller dividend payouts to minority shareholders of the subsidiaries. Costs The cost of materials came to just under 2.8 million (previous year: approx. 1.3 million). This increase is primarily due to a greater volume of goods purchased (hardware and software) for work on projects, the heightened use of external staff and the larger number of projects with subcontractors. Personnel expenses in the first half of 2006 shrank by around 5% from 7.6 million in the previous year to 7.2 million. Other operating expenses also contracted by around 4%, dropping to some 2.2 million (previous year: approx. 2.3 million). Employees The number of employees in the first half of 2006 remained more or less unchanged over the same period one year earlier. The average Group headcount for the period between January and June 2006 stood at 148 (previous year: 149). As of June 30, 2006, the headcount was also 148 (previous year: 149). Equity capital Equity capital stood at 20.2 million as of June 30, 2006, up from 19 million in At 67% (previous year 65.5%), the equity ratio is still above average. 4

5 Annual General Meeting At NorCom Information Technology AG's annual general meeting held on June 28, all the motions proposed were passed: 1. Presentation of the approved annual financial statements for Resolution on the allocation of the unappropriated surplus 3. Exoneration of Management Board for fiscal Exoneration of Supervisory Board for fiscal Election of auditor and group audit for Amendments to Articles 14 (3) and 15 (1) and (2) of the Bylaws 7. Revised version of Article 15 (4) of the Bylaws 8. Acquisition of own shares Full-year outlook for fiscal 2006 We expect generally favorable business throughout the rest of the year. For the year as a whole, the Company is still on track to achieving its forecast of a 10% increase in sales in tandem with double-digit EBIT growth thanks to the substantial year-on-year improvement in orders and the traditionally stronger second half of the year. We will be plowing our profits back into extensions to our range of products. In this way, the NorCom Group will be further expanding its position in the growth market of digital archiving. Our strategy is also focusing on strengthening marketing and distribution activities. This specifically entails building up a presence in Eastern Europe with local partners, e.g. Okno TV and further reinforcement of the strategic alliance already forged with Apple. In particular, NorCom sees potential in the Apple Content Management Production System for the second half of the year. NorCom Information Technology AG will be providing updates on its performance in fiscal 2006 on the following dates: November 30, 2006 Commentary on the 3rd quarter of 2006 March 31, Annual Report Performance of NorCom stock in the first half of 2006 compared with the Technology All Shares (all values indexed) 5

6 Corporate governance bodies at NorCom Supervisory Board Dr. Lutz Schmidt Chartered accountant Chairman of Supervisory Board at NorCom Information Technology AG Prof. Dr. Manfred Schlottke Information and communications technology consultant Deputy Chairman of Supervisory Board at NorCom Information Technology AG Prof. Dr. Thomas Hess Director of Institute for information systems and new media at Ludwig- Maximilian-University in Munich Management Board Viggo Nordbakk (founder) (CEO) 6

7 Shares and options held by the members of the Supervisory Board and the Management Board and options held by employees as at June 30, 2006 Supervisory Board changes in 1st half of 2006 Shares as at Options as at Dr. Lutz Schmidt (Chairman) None None None Prof. Dr. Manfred Schlottke None None None Prof. Dr. Thomas Hess None None None Management Board changes in 1st half of 2006 Shares as at Options as at Viggo Nordbakk (CEO) None 7,500 shares 2,500 stock options Nordbakk Beteiligungen Verwaltungs GmbH None 3,833,922 shares None Employees Vested options as at Exercised options as at Unexercised options as at 238,712 None 30,954 7

8 Consolidated Financial Statements pursuant to IFRS NorCom Information Technology AG, Munich Consolidated Balance Sheet (IFRS) as of June 30, /30/2005 Stocks 0 0 Trade receivables 5,538,311 4,294,993 Receivables from affiliated companies 0 0 Miscellaneous current assets 559, ,628 Other Securities 3,682,844 5,132,725 Cash and cash equivalents 8,715,508 7,872,638 Current assets 18,496,494 18,178,984 Prepaid expenses 202, ,808 Intangible assets 9,478,042 9,073,668 Tangible assets 351, ,498 Financial assets 710, ,001 Noncurrent assets 10,539,616 9,803,168 Deferred taxes 826, ,253 Assets 30,065,104 29,049,213 8

9 06/30/2005 Liabilities to banks Advance payments on orders 18, ,383 Trade payables 1,272, ,774 Other Liabilities 1,842,959 1,989,895 Liabilities 3,133,864 3,227,628 Deferred income 302, ,660 Provisions for taxes 977, ,673 Other provisions 2,264,253 2,509,466 Provisions 3,241,714 2,881,139 Deferred taxes 120, ,642 Minority interest 3,056,230 3,445,647 Ordinary share capital 10,620,443 10,587,516 Capital reserves 1,840,016 1,796,553 Currency reserve -20,104-18,045 Consolidated net income/loss(-) 7,770,199 6,674,473 Shareholders' equity 20,210,554 19,040,497 Liabilities 30,065,104 29,049,213 9

10 NorCom Information Technology AG, Munich Shareholder's equity (IFRS) for the period January 1 - June 30, 2006 Subscribed capital Capital reserves Consolidated net loss Currency conversion Total December 31, ,620,443 1,840,016 7,478,309-77,145 19,861,623 Registration of capital increase Currency exchange difference 57,041 57,041 Net income for Jan-Jun , ,890 June 30, ,620,443 1,840,016 7,770,199-20,104 20,210,554 Shareholders' equity (IFRS) for the period January 1 - December 31, 2005 Subscribed capital Capital reserves Consolidated net loss Currency conversion Total December 31, ,116,810 1,467,059 6,480, ,946 17,938,357 Capital increase 503, ,633 Changes due to consolidation 372, ,957 Currency exchange difference 48,801 48,801 Net income for Jan - Dec , ,875 December 31, ,620,443 1,840,016 7,478,309-77,145 19,861,623 10

11 NorCom Information Technology AG, Munich Consolidated Income Statement (IFRS) for the period of January 1 to June 30, 2006 Jan-Jun 2006 Jan-Jun 2005 Revenues 13,144,811 12,374,916 Other operating income 268, ,264 Total revenues 13,413,528 12,654,394 Cost of materials a) Expenditure on external goods -384, ,667 b) Expenditure on external services -2,421, ,954 Staff cost a) Wages and salaries -6,478,518-6,875,023 b) Social security -734, ,695 Other operating expenses -2,193,510-2,285,826 EBITDA 1,200,568 1,472,229 Depreciation/amortization -351, ,397 Write-down of financial assets and short-term investments 0-89,531 EBIT 849,326 1,079,302 Income from other long-term securities and loans 39, ,726 Interest and similar income 155,728 69,564 Interest and similar expenses -9,566-10,980 Earnings before taxes and minority interests (EBT) 1,034,569 1,271,612 Taxes on income -384, ,688 Earnings before minority interests 650, ,924 Profit/loss on minority interests -358, ,811 Net income/loss(-) for the year 291, ,113 Earnings/loss per share (basic) Average shares outstanding (basic) 10,620,443 10,587,516 11

12 NorCom Information Technology AG, Munich Consolidated Cash Flow Statement (IFRS) for the period January 1 - June 30, 2006 Jan-Jun s Jan-Jun s Earnings before minority interests Depreciation and amortization costs and other write-offs on intangible assets and fixed assets Amortization charges on financial assets 0 90 Book gains from disposal of intangible and tangible assets 0 0 Non-cash income from fair-value measurement of securities held as current assets 0-25 Changes on provision -1, Inventory changes 0 2 Change in trade receivables -1,619-1,076 Changes in other assets, as well as assets not assigend to investing or financing activities Change in trade payables Change in other liabilities as well as miscellaneous liabilities not assigned to investing or financing activities Funds received/paid from current operations -1,370-1,121 Payments received from the disposal of intangible assets and fixed assets 0 0 Payments for investment of intangible assets and fixed assets Funds received/paid from investments Change in debt Payments to minority shareholders Funds received/paid from financing operations -1,078-1,142 Change in financial resources affecting cash flow -2,540-2,362 Changes of financial resources due to exchange rates, consolidation and evaluation Financial resources at the beginning of the period 15,054 15,468 Financial resources at the end of the period 12,398 13,005 12

13 NorCom Information Technology AG Stefan-George-Ring 23 D Munich Phone +49 (0)89 / Fax +49 (0)89 / aktie@norcom.de