Preliminary half-year figures - stable sales, higher margins

06/30/2017

• Revenue shift from big infrastructure to big data

• Increase in EBITDA due to higher margins

• Integration of the Big Infrastructure division into "Asset Based Consulting" (ABC)

NorCom Information Technology AG expects total output of EUR 7.7 million in the first half of the year (2016: EUR 7.8 million). EBITDA (earnings before interest, taxes, depreciation and amortization) is expected to be 0.92 euros in the first six months of the current year (2016: 0.5 million euros).

"In the Big Data area we are in the start-up phase", explains Viggo Nordbakk, CEO of NorCom IT AG, the figures. "We currently have to reckon with sales fluctuations until we have built up a solid customer volume. In the first quarter of 2017 we were able to record two license sales to the well-known automobile manufacturers Daimler and Audi. Here we are currently in the project implementation phase Expected at the end of the year, when DaSense is fully in use and invoicing is based on the volume of the analyzed data. "

In addition, the previous major order from the Federal Employment Agency was converted to the new contract: Here, the monthly turnover fell by around EUR 200 thousand. Revenues from the contract will stabilize at this level in the coming quarters.

The first successes of the strategy to increase profitability can be seen in EBITDA. Despite only stable sales in the half-year comparison, EBITDA could be increased. This effect should be even more effective in the future: license income or the rental model for the software solutions then ensure predictable, regular income with a high profit margin.


Outlook and strategy

"We are continuing to pursue our strategy of developing the Big Infrastructure business, which is mainly based on service, into asset-based consulting. Our consulting services will then be offered in addition to our proprietary software solutions. With this restructuring, we want to grow even more profitably and at a higher level Achieve the scalability of our business model, "says Viggo Nordbakk, CEO of NorCom Information Technology AG, explaining the company's strategy.

In the area of ​​sales and marketing, NorCom relies on experienced partners and a flexible, market-oriented offer. "Through our partner companies, we can increase the level of awareness of our product solutions among the relevant target customers and open up new sales channels," explains Nordbakk. "We also want to make it as easy as possible for interested parties to get started with Big Data with NorCom: Some companies have already received our free test access."

In addition to the "on-premise" installation of DaSense, NorCom also offers services "as a service" in the cloud. New customers can simply use the intelligent product without having to make large initial investments. Existing customers can quickly scale existing installations worldwide.