Birkeroed, August 16 2011, 2011-08-16 11:10 CEST (GLOBE NEWSWIRE) -- Announcement no. 7-2011
August 16, 2011
Profit announcement for the second quarter and first half year of 2011
Netop Solutions’ Board of Directors has revised the company's strategy for the coming years, resolving to accelerate investments, especially in the Administration and Communication business segments. The Communication segment reported a 43% revenue improvement in H1 2011, and we are seeing growing interest for the product. As a result, we will accelerate our marketing activities to the full extent of our financial capability. Growth in the Administration segment fell short of expectations, but management maintains the Enterprise strategy and plans to step up investments in the second half of 2011. Full-year guidance for 2011 revised to revenue in the DKK 90–95 million range and EBITDA of DKK 0–5 million.
CEO Kurt Bager said: On a same operations basis, we now have a stable cost base and stronger operations than we did in the corresponding period of last year. For that reason, our Board has approved our proposal to accelerate investments, particularly in two business areas. We will allocate additional marketing resources to the Live Guide product (43% sales growth in the first half), as this is a relatively new business area and because we aim to reduce time to market as much as possible. This is a high growth market, and already in the first half our spending amounted to DKK 6 million. We have now allocated an additional DKK 1.5 million, exclusively for marketing purposes. In Administration, which did not produce the anticipated growth performance, we will accelerate our investment in products addressing the growing market of tablets and smartphones. Our priority to the Enterprise market is unchanged, and we have a fairly strong pipeline. However, some reluctance has characterized the market, especially in the USA, which came as a surprise following the impressive growth rates of 2010. As a result, we have revised our full-year guidance and will be investing about DKK 3.0 million more than we have originally planned. This will not support revenue until in 2012.
Highlights
- Revenue amounted to DKK 21.3 million in Q2 2011, compared with DKK 22.5 million in Q2 2010. The decline was mainly due to the lower USD/DKK exchange rate, which impacted Q2 2011 revenue by DKK 1.2 million. Adjusted for the lower exchange rate the revenue is at the same level compared with Q2 2010. H1 revenue was DKK 42.1 million, as compared with DKK 43.0 million in H1 2010.
- EBITDA was a loss of DKK 0.8 million in Q2 2011, against a DKK 1.3 million profit in Q2 2010. EBITDA was a loss of DKK 0.6 million in H1 2011, against a DKK 3.0 million profit in H1 2010. The 2010 EBITDA profit included a one-off gain of DKK 5.0 million.
- Netop Solutions recorded a net loss of DKK 4.2 million in Q2 2011, against a DKK 3.3 million loss in Q2 2010. The company recorded a net loss of DKK 6.5 million in H1 2011, against a DKK 0.9 million loss in H1 2010. The 2010 net loss included a one-off gain of DKK 5.0 million.
- Management has revised its full-year guidance from the previous forecast of revenue in the DKK 97–102 million range and EBITA of DKK 7–12 million, because the growth anticipated in Administration has failed to materialize. Also, investments are expected to be around DKK 3 million higher than originally announced, targeting business activities that are only expected to lift revenue in 2012. We now expect full-year revenue for 2011 in the DKK 90–95 million range and EBITDA of DKK 0–5 million.
Netop Solutions A/S
Netop develops and sells software solutions enabling swift, stable and secure transfer of video, screen images, sound and data between two or more computers. The company has three core business areas: Administration, Education and Communication. Netop Remote Control, Netop's Administration solution, is the most scalable and secure solution available on the remote control market today and more than half of the Fortune 100 companies apply this unique solution. Companies all over the world use Netop Remote Control to cut their support costs and comply with tough security requirements. Netop Solution’s market-leading Education solutions for digital classroom management help students and teachers in 75 countries achieve results through virtual teaching. Greater efficiency and higher grades are but some of the results. Netop Live Guide, Netop's Communication solution, is a unique chat solution that enables businesses to offer better customer service, enhance their efficiency and sales and convert online visitors to customers. Netop has 130 employees and subsidiaries in the USA, the UK, Romania, China 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 92.1 million in 2010. 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.
Chief Executive Officer Kurt Bager
Tel: +45 45 90 25 25
E-mail:kgb@netop.com
