Norkom has announced a 64% increase in revenues and a 59% improvement in EBITDA for the year ending 31st March 2008 (2008)
The company reports the following key financials:Revenue up 64% to EUR41.0 million (2007: EUR25.0 million) including the acquisition of Digital HarborEBITDA (earnings before interest, tax, depreciation and amortisation) up 59% to EUR7.2million (2007: EUR4.5 million).Adjusted Diluted EPS up 43% to 7.69 cents (2007: 5.37 cents)Net assets of EUR50.3 million (2007: EUR32.6 million)Net cash inflow generated from operations increased to EUR5.2 million (2007: EUR4.0 million).
Key business highlights for the year included the following:
Digital Harbor, North American acquisition - closed in July 2007, brought to profitability in 2008 and fully integrated in to our organisationNorth America revenue increased by 111% year on year, with a number of significant Tier 1 client wins including: Washington Mutual and American ExpressNorkom has added 32 new clients during the year and secured continued incremental business from its existing client base. This includes the addition of 10 clients from the acquisition of Digital Harbor, mainly from the tier one US financial services sector.AsiaPac achieved an outstanding EUR4.5 million revenue in its first full year of operations with new client wins including WestPAC, St George and ANZNorkom's market recognition increased significantly with the company winning a series of prestigious awards by some of the industry's most respected publications and eliciting praise for its business strategy from internationally respected research firms such as Gartner2008 was the first year of strong revenue from the partner enabled channel with 16% of total revenue delivered from this channel.
Commenting on the full year results Norkom's chief executive officer Paul Kerley said: "Fiscal 2008 has been a very successful year for Norkom and one that has strengthened Norkom's capacity to compete and scale our business in future financial periods. During 2008 we have significantly developed all areas ss of our organisation and we now are present and delivering success in 80% of the global addressable market. Our market visibility and global brand has evolved to an extent where we are seen as a natural choice for top tier financial institutions intending to invest in Financial Crime and Compliance solutions. Additionally we are seen as the leading solution globally by a number of the worlds leading system integrators and consulting firms who have chosen to partner with Norkom thereby increasing our market reach and scalability. This is evidence by the fact that our partner enabled revenue has increased to 16% of our revenues up from 2% in the same period last year.
"2008 has been quite a tumultuous year for our target market, the financial services sector. This has been created by a combination of the sub-prime induced credit crunch, fears of a recession in the US and a series of high-profile banking failures. Fortunately, these events served to solidify and focus our clients and prospects senior management teams to invest in and deliver on their risk management agendas.
"We continued to follow our company strategy of delivering organic growth with profits while pursuing complementary acquisitions. Completing the acquisition and integration of Digital Harbor in a year where we also delivered significant growth in organic revenues is a testament to our team's ability and brings us closer to becoming the gold standard for Financial Crime and Compliance solutions globally."