Software firm Norkom confident of growth and trading ahead of guidance

SPECIALIST software company Norkom Technologies has said it is still confident of growth, despite market changes, and is trading marginally ahead of guidance.

The Dublin-headquartered company, which sells its range of anti-fraud and money laundering software to financial services companies around the world, yesterday said it remains profitable, with a strong balance sheet and cash position.

According to Norkom’s chief executive Paul Kerley: “We’ve experienced changes in market behaviour during the first half of the financial year with customers now preferring an incremental approach to procurement and engaging in longer sales cycles. While this impacted our view of what is achievable in terms of operating performance for the full-year, the pipeline for new business remains strong and the fundamental market drivers are still present,” he said.

Half-year results covering the six months to the end of September show Norkom generated a revenue of €22.6m; down from €24.6m for the same period last year.

The 8% revenue fall was down to a 33% sales decline in the Asia-Pacific market, but smaller year-on-year falls were also seen in Norkom’s operations in the Middle- East and Europe; while revenues rose 2% to €9.2m in north America, where a return to normal buying behaviour is evident.

Earnings before interest, tax, depreciation and amortisation (EBITDA) fell from €4.5m to €1.6m and adjusted earnings per share fell from 4.22c to 1.6c, on a year-on-year basis.

However, the company’s cash balance rose from €31.7m to €37.3m.

“We believe the correct strategy is to continue to invest in the business, reflecting our confidence in the future growth of Norkom.

“Our financial strength, expanding global client base and market leading fraud management and compliance solutions provide us with a strong position from which to benefit from any future upturn in the market,” Mr Kerley added.