Announcement No. 6-2008
12 March 2008
Annual report 2007
Danware's Board of Directors has today considered and approved the 2007 Annual
Report.
Highlights
Danware went through extensive restructuring and change in 2007 in a process
that was initiated as part of the decision taken in 2006 to establish our own
subsidiaries in our core markets, the USA, Germany and the UK. Building up the
subsidiaries and the overall sales channel is taking longer than expected,
resulting in a drop in both revenue and earnings. Although our performance in
2007 was disappointing, our management remains confident that our decision to
set up wholly-owned subsidiaries is the right one and that we have now created a
better platform for growth. We expect revenue and earnings to increase in 2008.
Total revenue for the year was DKK 85.3 million, compared with DKK 97.9 million
in 2006. The revenue performance was disappointing, and revenue was
substantially lower than projected at the beginning of the year.
Desktop Management revenue fell by 1.0%. Revenue from our largest product, NetOp
Remote Control, was up by 4.1%.
Education area revenue fell by 39%, in part because it has taken longer than
anticipated to build up the Education product sales channels in our
subsidiaries. A number of steps have been taken to lift the Education business
area.
EBITDA was a loss of DKK 20.6m against a profit of DKK 7.1m in 2006. The setback
in earnings was mainly due to an increase of fixed costs and to the lower
revenue.
EBIT was a loss of DKK 32.0m against a profit of DKK 1.1m in 2006.
Danware incurred a loss before tax of DKK 30.9m against a profit of DKK 2.1m in
2006, and a net loss for the year of DKK 31.7m against a profit of DKK 0.7m in
2006.
The Board of Directors proposes that no dividend be paid in respect of the 2007
financial year.
Revenue for 2008 is expected to be in the DKK 100-110 million range and we
project an operating loss before depreciation and amortisation (EBITDA) of
approximately minus DKK 10m.
Contact
Claus Grove, CFO, tel. +45 4590 2525, e-mail: cfg@danware.com
Analyst presentation
Danware will host an analyst presentation on Wednesday, 12 March 2008 at 09.00,
at Carnegie Bank A/S, Overgaden neden Vandet 9B, DK-1414 Copenhagen. CEO Kurt
Bager and CFO Claus Finderup will represent Danware at the presentation.
To OMX Nordic Exchange Copenhagen the annual report is attached this
announcement. The annual report is also available on Danware homepage
www.danware.com
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
two product areas are Desktop Management and Education. The core product in
Desktop Management, NetOp® Remote Control, enables remote control of one or more
distant computers. NetOp® School, the core product in Education, is a software
application for computer-based classroom teaching. Danware's products are sold
in more than 80 countries. In 2007, the company generated revenue of DKK 85m.
Danware's shares are listed on the OMX Nordic Exchange Copenhagen (ticker DANW)
and are a component of the Small Cap+ index.
