Announcement no. 5 - 2009
28 April 2009
Profit announcement for the first quarter of 2009
Netop Solutions A/S recorded revenue growth of 58% in Q1 2009 (11% on a
comparative basis) relative to the same period of last year. The performance
was in line with our forecast. Management retains its focus on the concluding
part of the turnaround process initiated in 2008. Our development centre in
Romania received additional employee resources in Q1, the sales organisation
was strengthened and our market position was significantly enhanced. We retain
our expectations of substantial revenue growth and improved profitability for
the full year 2009. However, it would still not be realistic to expect an
operating profit for the full year 2009.
The Q1 revenue was DKK 26.1m against DKK 16.5m in Q1 2008, an increase of 58%.
This significant increase was primarily attributable to the acquisition of
GenevaLogic and the signing of the distribution agreement concerning Medianet
in mid-2008. Adding the revenue generated by these companies in Q1 2008 to
Netop Solutions' revenue for the same period of last year would, on a
comparative basis, produce a revenue increase of 11% in Q1 2009 relative to the
year-earlier period. Management considers this to be satisfactory in light of
the global economic recession. Revenue in the EMEA/APAC regions rose by DKK
3.4m and US revenue was up by DKK 6.1m relative to Q1 2008, corresponding to
increases of 6% and 17%, respectively, on a comparative basis.
The Q1 Administration revenue was DKK 14.1m, compared with DKK 13.5m in Q1
2008. The Q1 Education revenue was DKK 9.8m, against DKK 3.0m in the same
period of last year, while revenue from Communication, which is a new business
area for Netop Solutions, amounted to DKK 0.8m. The Communication license model
differs from Administration and Education in that Netop Solutions does not sell
a license against a one-time payment giving the customer the right to use the
product (the software). By contrast, the customer pays for using products in
the form of regular payments under agreements made for an indefinite term. This
produces a regular cash inflow to Netop Solutions.
After the end of the reporting period Medianet has informed Netop Solutions
that it wishes to exercise the agreement between the parties to the effect that
Netop Solutions will fully take over the rights in the Communication product.
An agreement between the parties concerning the practical implementation
remains to be negotiated.
EBITDA was a loss of DKK 13.2m in Q1 2009, against a loss of DKK 12.3m in the
same period of last year. EBIT was a loss of DKK 16.6m in Q1 2009, compared
with a loss of DKK 13.8m in the year-earlier period. We recorded a net loss of
DKK 14.3m in Q1 2009 against a DKK 8.9m loss in Q1 2008. The performance was in
line with management's expectations, as costs are higher in Q1 2009 than they
will be in the remainder of the year, as the cost-saving measures implemented
will not take full effect until after the first quarter.
Management retains its forecast for revenue and earnings growth in 2009. On the
basis of our forecast of successively declining costs and rising revenue
throughout 2009, we expect to generate an operating profit (EBITDA) in the
second half of 2009. However, it would not be realistic to expect an operating
profit for the full year 2009.
Contact
Kurt Bager (CEO) Claus Finderup Grove (CFO)
Tel. +45 45 90 25 25 Tel. +45 45 90 25 25
E-mail:kgb@netop.com E-mail: cfg@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 Remote Control and IT Asset Management. 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, including unified communications,
allow customers, business partners and colleagues to meet easily and safely in
virtual space through video conferences, chat, audio and file sharing over the
Internet. Netop has 140 employees and subsidiaries in the USA, the UK, China,
Germany 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 and is a component of the SmallCap+ index. Netop
generated revenue of DKK 92.1m in 2008. For more information, go to
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.
