Announcement no. 23-2010
16 November 2010
Q3 2010 profit announcement - Netop Solutions upgrades full-year guidance.
Netop Solutions upgrades the FY 2010 EBITDA guidance to DKK 7-8 million from
the previous forecast range of DKK 0-5 million. Combined with the adjusted cost
levels, management's focus to bring Netop Solutions back on track for growth
produced a substantial earnings improvement for 9M 2010, lifting EBITDA for the
period to a DKK 5.7 million profit from a DKK 35.1 million loss in 9M 2009. Q3
2010 revenue was up by 12% over Q3 2009, and management expects further revenue
growth in the fourth quarter. As a result, FY 2010 revenue is now expected at
approximately DKK 90 million instead of the previous guidance of DKK 80-90
million.
•Q3 revenue amounted to DKK 23.2 million, compared with DKK 20.7 million in Q3
2009, bringing the 9M 2010 revenue to DKK 66.2 million, compared with DKK 68.3
million in 9M 2009. The drop in revenue for the 9M period was mainly due to the
fact that Netop Solutions is no longer a distributor of the Communicator
product.
•Administration revenue amounted to DKK 11.5 million, a 24% increase from DKK
9.3 million in Q3 2009. Our greater focus on sales to Enterprise customers was
the main reason for the revenue improvement. Netop Solutions' technologically
innovative products address a large number of the needs demanded by major
organisations.
•Q3 Education revenue was DKK 10.7 million, as compared with DKK 9.4 million in
Q3 2009. The improvement was driven mainly by improved market conditions for
solutions targetting the education market and by the fact that through our
sales focus and sales strategy in this market, we have managed to win orders
from our nearest competitors. We believe that market conditions have improved,
but there are still challenges to be addressed, especially in the US market.
•Revenue in the EMEA/APAC region was DKK 11.1 million in Q3 2010, compared with
DKK 10.6 million in Q3 2009. US revenue totalled DKK 12.1 million, against DKK
10.1 million in Q3 2009.
•EBITDA was a profit of DKK 2.6 million in Q3 2010, against a loss of DKK 8.2
million in the same period of last year. EBITDA was a profit of DKK 5.7 million
in 9M 2010, against a loss of DKK 35.1 million in the same period of last year.
The profit for 9M 2010 included a DKK 5.0 million gain from the sale of Mobile
Embedded.
•EBIT was a loss of DKK 0.4 million in Q3 2010, compared with a loss of DKK
11.2 million in the year-earlier period. The 9M 2010 EBIT was a loss of DKK 3.2
million, compared with a DKK 44.6 million loss in 9M 2009.
•Netop Solutions recorded a net loss of DKK 3.6 million in Q3 2010, against a
loss of DKK 11.4 million in Q3 2009, bringing the 9M 2010 net loss to DKK 4.5
million, compared with a DKK 41.3 million loss in 9M 2009.
•Management upgrades the full-year guidance for EBITDA to DKK 7-8 million from
the previous forecast range of DKK 0-5 million. FY 2010 revenue is expected to
be approximately DKK 90 million, which is at the upper end of the previously
guided range of DKK 80-90 million.
Contact
Kurt Bager (CEO)
Tel: +45 45 90 25 25
E-mail:kgb@netop.com
About Netop Solutions A/S
Netop develops and sells software solutions enabling swift, stable and secure
transfer of video, screen images, sound and data over the Internet. The company
has three core business areas: Administration, Education and Communication.
Netop's unique and cost-saving Administration solutions makes work easier for
IT professionals through secure remote control solutions. Netop's
market-leading Education solutions for classroom management and corporate
e-learning help students and teachers achieve optimum results through virtual
teaching. Netop's Communication solutions allow customers, business partners
and colleagues to meet easily and safely in virtual space through chat, video
or voice over the Internet. Netop has 142 employees and subsidiaries in the
USA, the UK, Romania and Switzerland. The company sells its solutions to public
and private sector customers in more than 80 countries. Netop Solutions A/S is
listed on NASDAQ OMX Copenhagen. Netop generated revenue of DKK 85.3 million in
2009. For more information, go to: www.netop.com
Netop Solutions A/S
Bregnerødvej 127
DK-3460 Birkerød
CVR 16 22 15 03
T +45 4590 2525
F +45 4590 2526
www.netop.com
Translation In the event of any inconsistency between this document and the
Danish language version, the Danish language version shall be the governing
version.
