Announcement No. 4-2007
13 March 2007
Annual Report 2006
Danware's Board of Management today approved the annual report 2006.
Highlights
The year 2006 was an eventful year. Danware completed a range of activities
aimed at strengthening sales and distribution and bringing the company into a
new phase characterised by significant progress. These activities included
setting up wholly-owned subsidiaries in the US, the UK and Germany for the
purpose of expanding the network of business partners in those countries. In
other countries, Danware intensified efforts to increase the number of partners
just as we increased focus on sales through new channels. At the end of 2006,
the many strategic activities began to feed through. In 2007, such activities
are expected to result in substantial revenue growth and improved financial
results. Particularly, we expect our US operations to contribute to our growth.
The company launched new versions of NetOp Remote Control and NetOp School in
2006. Danware also launched NetOp Mobile, a product developed from the company's
Remote Control software with a view to supporting remote control of and from
various mobile equipment (non-PC). Danware has developed NetOp Mobile as part of
its strategy to develop products that target high growth markets.
Total revenue for the year was DKK 97.9m, compared with DKK 91.3m in 2005. The
transition from sales through distributors to sales through subsidiaries caused
revenue from the former distribution channels in the main markets to drop in
much of 2006. The signing of new agreements with OEM customers and the
acquisition of new products have compensated for this decline in revenue to the
effect that the total revenue rose by DKK 6.6m and 7.2% relative to 2005.
Revenue from Desktop Management increased by 8.7% due partly to the signing of
strategic agreements on sale through new distribution channels.
Revenue from Education was up 3% as a result of stronger efforts within
Education and the acquisition of Cursum in April 2006, and in the beginning of
2007 Danware launched NetOp Instruct designed for the business segment.
Operating profit before depreciation and amortisation of goodwill (EBITDA) was
DKK 7.1m in 2006 against DKK 21.6m last year. The decline was primarily
attributable to costs related to setting up the distribution subsidiaries in the
US, the UK and Germany.
Operating profit (EBIT) was DKK 1.1m against DKK 18.3m in 2005.
Pre-tax profit was DKK 2.1m against DKK 21.2m in 2005, while the net profit for
the year was DKK 0.7m against DKK 14.6m in 2005.
The Board of Directors proposes that dividends of DKK 9.6m, equal to DKK 2.5 per
share of DKK 5 nominal value, be paid in respect of the 2006 financial year, as
a material improvement in earnings is expected in 2007.
Due to the implementation of the new sales and distribution strategy in 2006 and
a number of new planned activities in 2007, revenue is expected to be in the DKK
130-135m range, and operating profit before depreciation and amortisation of
goodwill (EBITDA) is expected to be around DKK 16m.
Contact
Peter Grøndahl, CEO, tel. +4590 2525, e-mail pg@danware.dk
Analyst presentation
Danware will host an analyst presentation on Wednesday, 14 March 2006 at 10.00,
at Gudme Raaschou Bank A/S, Kalvebod Brygge 43, DK-1560 Copenhagen. Peter
Grøndahl, CEO, and Lars Søndergaard, CFO,
will represent Danware at the presentation.
For OMX Copenhagen Stock Exchange the Annual Report 2006 is enclosed as
appendix. Furthermore, the Annual Report may be found at Danware's website
www.danware.dk.
Translation: In the event of any inconsistency between this document and the
Danish language version, the
Danish language version shall be the governing version.
Danware's core business is to develop and market software products based on the
NetOp core technology - a technology enabling swift, secure and seamless
transfer of screens, sound and data between two or more computers. The company's
three product areas are Desktop Management, Education and Security. The core
product in Desktop Management, NetOp Remote Control, enables remote control of
one or more computers from another computer. NetOp School, the core product in
Education, is a software application for computer-based classroom teaching. The
Security business products are NetOp Desktop Firewall and NetOp Netfilter. All
are plug ‘n play products offering extensive functionality, flexibility and
user-friendliness. Danware's products are sold in more than 80 countries. In
2005, the company generated revenue of approximately DKK 98m. Danware's shares
are listed on the Copenhagen Stock Exchange (ticker DANW) and are a component of
the Small Cap+ index.
