Nocom: Year-End Report 2001 (with link)


UPPSALA, Sweden, Feb. 7, 2002 (PRIMEZONE) - Nocom year-end report 2001 based on audited accounts for Nocom AB (publ) Corporate identity number 556400-7200.

Year 2001


 -- Turnover increased by 21 percent to SEK 280.4 M (232.2).
 -- Operating profit/loss before depreciation was SEK -75.9 M (-45.9).
 -- Net income after financial items amounted to SEK -188.0 M (-64.9),
    of which approximately SEK 93 M were nonrecurring costs according
    to the following:
      -- Goodwill write-downs, SEK 45.2 M
      -- Capital losses, SEK 22.0 M
      -- Corrective measures program, SEK 17.0 M
      -- Miscellaneous, SEK 9.0 M
 -- Cash flow from current operations was SEK -41.6 M (-47.2).
 -- Unappropriated liquid funds amounted to SEK 62.9 M as of
    December 31, 2001.

Fourth Quarter, 2001


 -- Turnover increased by 3 percent to SEK 79.1 M (76.9).
 -- Operating profit/loss before depreciations was SEK -17.1 M
    (-22.3).
 -- Net income after financial items amounted to SEK -67.9 M (-29.1),
    of which approximatelySEK 44 M were nonrecurring costs according
    to the following:
      -- Goodwill write-downs, SEK 17.7 M
      -- Capital losses, SEK 22.0 M
      -- Corrective measures program, SEK 4.2 M
 -- Cash flow from current operations was SEK 9.9 M (-17.4).

CEO Change in June

Stefan Skarin, formerly vice president of Nocom AB and president of Nocom Communications, became Nocom's chief executive officer on June 11.

Positioning and Streamlining of Operations

During the second half of 2001, the company positioned for concentration on IT solutions. Among other things, this has entailed that the subsidiaries Hera and Tradevision were sold during December, and that operations in Norway were restructured.

Corrective Measures Program Gains Full Effect in 2002

Cost-savings and the corrective measures program that were initiated during the second half of the year have contributed to improved earnings and positive cash flow during the fourth quarter, and are expected to gain further impact during the year 2002.

Good Liquidity Provides Increased Freedom of Action

With positive cash flow during the fourth quarter and good liquidity, the company does not foresee any additional financing needs with the present plans.

Report from the CEO

During the fourth quarter, Nocom reported a continued improvement in net income for core operations, but net income was burdened with costs related to the sales of Hera AB and Tradevision AB. Both of these companies reported negative net income, which burdened the group's operating profit/loss for the fourth quarter. The market situation has continued to be one of caution, which makes the earnings trend difficult to predict during the first part of 2002. The company continued with cost-savings and a corrective measures program during the fourth quarter as a part of the focusing on IT solutions and profitability. Among other things, operations in Norway were restructured, which led to six persons leaving the company. The corrective measures program burdened the quarter with about SEK 4.2 M in core operations. A large portion of the support and maintenance agreements, which are expected to represent approximately 80 percent of the company's service revenues, were renewed during the fourth quarter and allocated over a running 12-month period. Development of these revenues during the period was favorable. The degree of utilization for consulting and service operation continued to be low .

Positive Cash Flow in Fourth Quarter

Nocom reported a positive cash flow from current operations during the fourth quarter with SEK 9.9 M (-17.4). The sale of Tradevision created a positive cash flow from investment operations as well, with SEK 18.3 M (-28.8). The company reported interest-bearing funds of SEK 47.2 M as of December 31, 2001. Unappropriated liquid funds amounted to SEK 62.9 M.

Major Reduction in Costs

Streamlining and the corrective measures program reduced the company's costs (personnel, operating and marketing costs) considerably at the close of 2001. Costs are thus 33 percent lower than two years ago (2000), when operations were comparable in size. Costs of a nonrecurring nature, due to the corrective measures program, were SEK 17 M during the year. The implemented streamlining of operations and good liquidity provide the company with increased freedom of action.

Nocom Sells Hera and Tradevision

A part of our focusing on IT solutions were the sales of the subsidiaries Hera AB and Tradevision AB in December. Tradevision was acquired by the Canadian company Descartes, a global leader in e- logistics. At the same time, Nocom and Descartes entered a long-term collaborative agreement relating to integration and implementation of Descartes' solutions at Nocom e-channel center. The sales entailed that the quarter was burdened by SEK 22 M in capital loss.

Outlook for the Future

Nocom expects continued improvement in net income during the first quarter of 2002, but the extent is dependent on market developments. The company will present long-term goals for earnings in the next interim report on April 29, 2002. With the present plans, the company anticipates no needs for investments or supplementary financing.

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 The following files are available for download:
 www.waymaker.net/bitonline/2002/02/07/20020207BIT00120/bit0002.doc
 The full year-end report
 www.waymaker.net/bitonline/2002/02/07/20020207BIT00120/bit0002.pdf
 The full year-end report


            

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