NorCom Information Technology AG: Comment on the 2017 figures and first quarterly figures for 2018

NorCom Information Technology AG generated total revenues of EUR 13.7 million (previous year: EUR 18.1 million) and EBITDA (earnings before interest, taxes, depreciation and amortization) of EUR 1.2 million at the end of the 2017 financial year (previous year: 1.7 million euros). The consolidated surplus amounts to 2 million euros (previous year: 1.6 million euros).

The main reasons for the reduction in sales were the newly concluded contracts with the Federal Employment Agency (BA), which have a lower volume than the previous ones. This effect fully occurred in the second half of 2017. In the third and fourth quarter, major additional efforts were made in finalizing the products and integrating with the customer. The intensive development work, partly in-house, was however necessary to help the products DaSense and EAGLE to the final market maturity, which succeeded until the end of the year successfully. Both EAGLE and DaSense were thus ready for a large-scale rollout with the respective customers.

NorCom Information Technology AG (ISIN DE000A12UP37, General Standard), which is listed on the German Stock Exchange, has made a solid start to the new financial year. Although the company posted a year-on-year decline in total revenues of 3.6 million euros compared to the previous year (2017: 4.1 million euros). Taking into account the decline in sales from the BA order, which is reflected in the comparable quarter of approximately EUR 1 million, this results in a positive revenue contribution 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.

Nevertheless, EBITDA (earnings before interest, taxes, depreciation and amortization) increased to 0.5 million euros (2017: 0.4 million euros). The increased EBITDA is due to the increase in sales of Big Data Software. Licensing business can achieve higher margins in this business area than in the Big Infrastructure area. The stronger weighting of the Big Data business ensures greater profitability and should be intensified in the future.

"The goal for 2018 is to achieve a moderate year-on-year increase in sales. Public sector revenues will remain at the current level, and we expect growth in the big data area, "commented Viggo Nordbakk, CEO of NorCom IT AG, on the outlook for the year.

"In addition to the asset-based consulting, ie the customer-oriented development and expansion of our product core, we want to develop our own products, as we did in 2017, in order to secure the innovation lead and quality," Nordbakk continues.

On the other hand, we want to establish strategic partnerships that promote our growth. Technology partners should be trained on our products in order to work with them and to disseminate them further. By the end of the year, we plan to launch another innovative big data product. Accompanying this will be the expansion of personnel in the future areas of central importance. "

The 2017 Annual Report is available from 30 April 2018 at https://www.norcom.de/finanzberichte.