NorCom Information Technolgoy GmbH & Co. KGaA

Earnings Release • Aug 13, 2001

News Details

Ad-hoc | 13 August 2001 08:01

NorCom Info. Tech. AG english

Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– NorCom: First half figures below expectations Cost-cutting program implemented Munich, August 13, 2001 — According to preliminary calculations, NorCom Information Technology AG generated total operating income of approx. EUR 18 million in the first half of fiscal 2001. This is equivalent to a roughly 18% increase over the same period one year earlier on a pro-forma basis. Product business and product-related service business fell short of expectations on account of muted spending in the corporate sector. The high cost of realigning the group structure to harness stronger growth as well as development costs for NGS BeanGuard, which did not generate any revenues in the first half of the year, exerted strain on earnings. Accordingly, the NorCom Group will probably post net loss of EUR 3 million for the first six months of fiscal 2001, compared with the net income for the period of EUR 0.1 million in the year-ago period on a pro-forma basis. Liquidity remains on a solid basis. Management is responding to the sustained weak state of the economy and slower growth by cutting personnel expenses and drastically reducing the cost of materials. As a result, it should be possible to save EUR 2-3 million in the second half of 2001 alone. At the same time, business is to be adjusted to allow for changed market conditions by restructuring the distribution channels and honing the Company’s position. In spite of these steps, NorCom will fail to meet its revenue and earnings targets for this fiscal year. Judging by the current state of the economy, management assumes that revenues in the second half of the year will be roughly 30% higher than in the first half of 2001. The effects of cost-cutting and the optimization of corporate processes should start showing up in the bottom line as early as in the second half of the year. The aim is to break even on a quarterly basis in the fourth quarter. The Company will be releasing its full report on the first half of 2001 on August 23. end of ad hoc announcement (c) DGAP 13.08.2001 ——————————————————————————– WKN: 525030; Index: Listed: Neuer Markt Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, München, Hannover und Stuttgart 130801 Aug 01