Announcement No. 9 2008
29. April 2008
Profit announcement for the first quarter of 2008
After being appointed CEO of Danware in February 2008, Kurt Groth Bager has
launched a number of initiatives aiming to create a streamlined and focused
sales organisation and a value-creating and profitable platform for existing
and future products rooted in customer needs and general technology
developments. Q1 revenue fell short of expectations, but the performance
improved towards the end of the quarter. The new initiatives are expected to
have a visible effect on revenue and profits over the next three quarterly
periods. We retain our guidance for 2008.
Danware launched two now products in the first quarter, NetOp® School 5.5 and
NetOp® Instruct 5.5. The new products were launched in support of recent
initiatives to drive Education business area revenues to a substantially higher
level.
Q1 revenue was DKK 16.5m, a 30% drop from DKK 23.4m in Q1 2007. EMEA revenue
fell by 34% relative to the year-earlier period, and revenue in the Americas
declined by 18%.
Q1 Desktop Management revenue was DKK 13.5m, as compared with DKK 18.0m in Q1
2007. Q1 Education revenue was DKK 2.9m, as compared with DKK 4.9m in Q1 2007.
EBITDA was a loss of DKK 12.3m in Q1 2008 against a profit of DKK 0.1m in the
same period of last year. EBIT was a loss of DKK 13.8m in Q1 2008 compared with
a loss of DKK 1.7m in Q1 of last year. The decline was mainly due to the drop
in sales as well as higher staff and marketing costs as well as an increase in
external consultants' fees.
Danware incurred a net loss of DKK 8.9m in Q1 2008 against a DKK 0.7m loss in
the year-earlier period.
We retain the full-year forecast of revenue of DKK 100-110m and an EBITDA loss
of about DKK 10m for 2008.
Contact
Kurt Bager, CEO, tel. +45 4590 2525, e-mail kgb@danware.dk
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. All are plug ‘n
play products offering extensive functionality, flexibility and
user-friendliness. Danware's products are sold in more than 80 countries. In
2007, the company generated revenue of DKK 85.3m. Danware's shares are listed
on the Copenhagen Stock Exchange and are a component of the Small Cap+ index.
Danware operates wholly owned subsidiaries in the United States, the UK and
Germany. For more information, go to www.danware.com.
Translation In the event of any inconsistency between this document and the
Danish language version, the Danish language version shall be the governing
version.
