Norkom losses drop by 60%

NORKOM Technologies, the Dublin-based customer relationship management software firm, saw its losses fall by 60% in 2002.

Norkom, whose directors include Denis O’Brien, Fran Rooney and Gavin O’Reilly, reported a loss before tax of €8.35m in the year to end March, 2002, from €13.4m in 2001, according to documents filed with the Companies Office.

The accounts show that losses carried forward were €23.8m at the end of Norkom’s financial year, while its cash balance fell to €1.65m from €7.54m.

Turnover for the year was up from €5.3m to €6.2m and in the notes to the accounts the director said that since the year ended they have signed a number of deals worth in excess of €1m with companies including the financial services group ING, Diageo and Bank of Montreal.

The bulk of turnover was generated in Ireland with no US sales and just €289,178 from the rest of the world.

The directors say they are confident the business will turn a corner in 2004 and be profitable.

Norkom has changes its product focus since last year, which is reflected in the contract wins.

“Although market conditions remain challenging, the company will continue to focus on robust, salable and profitable company and build shareholder value in the long-term.”

The number of people employed by Norkom during the year dropped from 188 to 87, the bulk of the cuts coming from its consulting staff, where 54 jobs went.

The wages and salary bill fell to €4.1 million with overall staff costs reduced from €7.5m to €4.8 million.

This works out at an average salary of just over €50,000 per employee.