11/09/2018
In the first nine months of the current financial year, NorCom Information Technology GmbH & Co. KGaA achieved a total output of EUR 10.0 million (2017: EUR 10.2 million). The EBITDA (earnings before interest, taxes, depreciation and amortization) was 0.9 million euros at the end of the third quarter (2017: 1.1 million euros). NorCom shows a stable development - despite the currently unfavorable market conditions for the most important customer group, the automobile companies, which also give service providers and suppliers a difficult environment.
Business development
With its innovative software solutions EAGLE and DaSense, NorCom was the first major market to win the automotive industry and successfully entered the market here.
The introduction of the Enterprise Collaboration solution EAGLE at Audi is progressing according to plan and the potential of the project is great: The software will be completely integrated into the company's existing IT landscape - with the aim of having more than 20,000 users up to 500 Find, edit, save and exchange millions of documents. EAGLE is replacing the existing internal drive. The customer has made a long-term commitment to a joint roadmap that defines the further development of EAGLE over the next few years. Together with the responsible department at Audi, NorCom is now starting marketing and promoting EAGLE within the group.
The DaSense big data analysis tool is also used in the automotive environment, where it is primarily used in research and development. DaSense is used in numerous projects at Daimler, AMG, BMW, Stihl and in the Alp.Lab research project. Despite positive results in the individual projects, the full potential of DaSense is not yet being exploited. The current difficulties in the automotive industry, which also affect NorCom customers in particular, are causing delays in projects and the cost-saving measures that have been taken make new orders more difficult. DaSense has been successfully installed at all customers, but the calculated high data volumes are not yet fully available for DaSense for analysis. The monthly fee for DaSense, which is based on the data volume, is therefore currently not billed as planned, which means that sales remain stable at the level of the previous year.
Investments in partner acquisition
In order to grow further, to reach a larger market and to build up a strong, global sales force, NorCom aims to work with strategic partners. On October 10, 2018, the signing of a comprehensive partner contract with AVL List GmbH was announced. A contract with a second partner should follow this year.
The partners are enabled to handle the entire DaSense sales process and to install the software at the customer's site without the support of NorCom. In order to ensure smooth sales via third parties, further investments in the product were necessary in the third quarter.
“We are convinced that a strong partner network is our key to success and will continue to pursue this strategy. We are looking forward to exciting projects with our partners and groundbreaking impulses for the further growth of our products ”, says Viggo Nordbakk, Managing Director of NorCom IT GmbH & Co. KGaA.