NCipher reports full year loss; hit by impairment charge

Source: nCipher

nCipher (LSE: NCH), a global leader in protecting critical enterprise data, announces its unaudited preliminary financial results for the full year ended 31 December 2006.

Financial summary for the full year ended 31 December 2006 (IFRS)
  • Sales revenue £21.1 million (2005: £17.4 million)
  • Abridean sales £0.5 million consolidated
  • Operating profit £0.5 million (2005: £1.9 million)
  • Abridean loss £1.6 million consolidated
  • Positive net cash from operating activities £1.2 million (2005: £1.2 million)
  • Total assets of £52.1 million, £43.1 million in cash (2005: £58.8 million, £40.6 million in cash)
  • Abridean investment impaired leading to charge of £7.3 million


Corporate News
  • Company proposes to return £34 million cash to shareholders by tender offer
  • Robert Jeens appointed as Chairman


Operational News
  • British Library selects nCipher to help protect National Digital Library
  • Solution delivered to Délégation Générale de l'Armement (DGA), part of the French Ministry of Defence, to secure its online trading exchange
  • nCipher helps to secure miSense biometric airport security system at Heathrow Airport


Commenting on the results Alex van Someren, Chief Executive Officer, said: "In 2006, nCipher's tenth anniversary year, the Company has delivered its highest ever revenues. The performance of nCipher's core business in cryptographic security products, including hardware, software and services, has remained strong. I believe that the uncertainty following last year's aborted offer is now past and that the Company has a clear strategy for expanding its business into areas with the potential for strong growth. Therefore, in 2007 we intend to increase our internal investment to develop and further refine our product portfolio."

Robert Jeens, Chairman, said: "I am very pleased to have joined nCipher as another successful year of growth came to a close. We have examined carefully the level of current cash balances appropriate to deliver our strategy and propose that £34 million be returned to shareholders by means of a tender offer. The tender offer will be made to all shareholders as soon as we receive Court approval."

Read the results statement here:» Download the document now 162.8 kb (Adobe Acrobat Document)

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