NorCom Information Technology AG: Commentary on the 2017 annual figures and the first quarterly figures 2018
04/27/2018
After the end of the 2017 financial year, NorCom Information Technology AG achieved a total output of EUR 13.7 million (previous year: EUR 18.1 million) and an EBITDA (earnings before interest, taxes, depreciation and amortization) of EUR 1.2 million ( Previous year: 1.7 million euros). The consolidated profit is 2 million euros (previous year: 1.6 million euros).
The newly concluded contracts with the Federal Employment Agency (BA), which have a lower volume than the previous ones, were primarily responsible for the reduction in sales. This effect occurred in full from the second half of 2017. In the third and fourth quarters, there was also a lot of effort in finalizing the products and in integrating them with the customer. The intensive development work, partly in-house, was necessary to help the DaSense and EAGLE products reach the final market maturity, which was successfully achieved by the end of the year. Both EAGLE and DaSense were ready for a large-scale rollout for their respective customers.
NorCom Information Technology AG (ISIN DE000A12UP37, General Standard), listed on the German stock exchange, got off to a solid start in the new financial year. The company has a year-on-year lower total output of EUR 3.6 million than in the previous year (2017: EUR 4.1 million). If one takes into account the decline in sales from the BA order, which is reflected in the comparable quarter at around EUR 1 million, there is, however, a positive contribution to sales from the big data business of around EUR 0.5 million. Compared to the fourth quarter of 2017, in which a total output of 3.5 million euros was achieved, the first quarter of 2018 shows stable sales.
The EBITDA (earnings before interest, taxes, depreciation and amortization) could nonetheless be increased to EUR 0.5 million (2017: EUR 0.4 million). The increased EBITDA is based on the increase in sales in the big data software area. In this business area, higher margins can be achieved through the license business than in the Big Infrastructure area. The greater weighting of the big data business ensures higher profitability and is to be intensified in the future.
Outlook and strategy
"The aim for 2018 is to achieve a moderate year-on-year increase in sales at the end of the year. Sales from the public sector will remain at the current level, and we expect growth in the big data area," says Viggo Nordbakk, CEO of NorCom IT AG, commenting on the outlook on the year.
"In addition to asset-based consulting, i.e. the customer-oriented development and expansion of our product core, we want, as in 2017, to further develop our products in-house in order to ensure the innovation lead and quality," continues Nordbakk.
According to Nordbakk, NorCom will set strategic priorities in the following areas in 2018: "On the one hand, the focus is on existing customers. These should be optimally looked after in order to be able to establish a successful long-term customer relationship use so that our products can become a central tool in the company.
On the other hand, we want to build strategic partnerships that promote our growth. Technology partners should be trained on our products in order to be able to work with them and to spread them further. We plan to launch another innovative big data product by the end of the year. At the same time, the increase in staff in the future areas will be of central importance. "
The 2017 annual report will be available from April 30, 2018 at https://www.norcom.de/finanzberichte .