Copenhagen, Denmark, March 29, 2007 - Olicom A/S, which trades on the
Copenhagen Stock Exchange, (“Olicom” or “the Company”) today reported financial
results for the fiscal year ended December 31, 2006. As announced in the
Company's Stock Exchange Announcement no. 1/2007 (January 9, 2007) Olicom has
entered an agreement with the real estate company ADR NR. 1904 ApS (“ADR”) on a
share issue and the acquisition from ADR of a real estate portfolio. The
agreement is conditional upon approval by the shareholders of the terms of the
share issue.
The auditors' opinion is expected to be without qualifications but to include a
supplementary note, which refers to the description in the Management Report
regarding the Company's future operations.
Key highlights of the year include:
· For 2006, Olicom's net result was a loss of tDKK 85,314, which is in line
with the previously announced expectations at the time of announcing the
results for the 3rd quarter. The Shareholders' Equity by the end of 2006 was
negative by tDKK 3,269.
· The Company has entered a conditional agreement with ADR on a share issue and
the acquisition from ADR of a real estate portfolio. The agreement is
conditional upon approval by the shareholders of the terms of the share issue.
Under the agreement ADR will secure the funding of Olicom's operations until
the completion of the share issue. After the planned share issue Olicom's
future main activity will be real estate investments. The Company's existing IT
venture capital investments are expected to be held until exits are achieved
and participation in possible follow-up investments will be considered. The
terms of the share issue, which will be presented for approval at a
shareholders' meeting, are under preparation. As announced in the Company's
Stock Exchange Announcement no. 22/2006 (December 7, 2006) it is expected,
however, that the share issue will take place at a price per share, which does
not substantially exceed the nominal value per share of DKK 0.25. It is further
expected that the size of the share issue will be DKK 175 - 200 million and
that DKK 75 - 100 million of the proceeds will be used for the acquisition from
ADR of a real estate portfolio comprising 6 - 8 business properties
predominantly located in Denmark. The gross value of the properties is expected
to be DKK 225 - 275 million. The price of the properties will be determined
based on valuations provided by independent experts. The Company has started
preparing the prospectus for the share issue and expects to complete the issue
during the first half-year of 2007.
· In connection with the entering of the agreement between Olicom and ADR,
Olicom and ADR entered an agreement with Investeringsselskabet Elkær Invest A/S
(“IEI”) terminating the co-operation agreement between Olicom and IEI and
assigning IEI's loan receivables etc. to ADR.
· During 2006, Olicom had to dispose its investments in ITE and Sifira with a
loss of tDKK 79,149. The disposals were made since Olicom did not have
sufficient financial resources to secure the continued operation of the two
companies. The transactions were structured so, that Olicom received small cash
payments, was released from all financial commitments relative to the
companies, and will receive a share of the proceeds, which the buyers may
receive as a result of a future resale. The Company has not booked any value of
future proceeds from such resales and has no expectation that such proceeds
will be realized.
· The Company's remaining portfolio of IT venture investments comprise its
equity interests in LH Comlog A/S, Hymite A/S and Scalado AB. These equity
interests are covered by the Company's agreement with IVS A/S and thus hold
through Olicom's equity interest in Kommanditselskabet af 21. juli 2005
(“Kommanditselskabet”). All three companies developed positively in 2006.
· In February 2006 Olicom's shares were deregistered in the U.S. as the Company
has wanted it. This means that the shares now only trade on the Copenhagen
Stock Exchange and that shares held in the U.S. must be transferred for
registration at the Danish Securities Center before the shares can be traded.
· Provided that the shareholders' meeting in Olicom approves the preconditions
for implementing the agreement with ADR, the Company's future activities will
predominantly be real-estate investments.
· In 2007 the Company expects to incur administrative and financial costs of
DKK 8 - 10 million. In addition the Company's result may be impacted by
non-recurrent costs related to the implementation of the new business plan and
by losses or gains resulting from write-downs and write-ups of the value of the
existing investment portfolio. The result of the new investment activities is
expected to be positive, but is not expected to be significant to the 2007
result as such investments will only impact the last six months of the year.
Olicom A/S in 2006
Since May 2000, the Company has carried on venture capital business with a view
to creating value through the development of new products and services based on
innovative technology within information and communication technology.
The Company's shares are listed on the Copenhagen Stock Exchange. In February
2006 the Securities and Exchange Commission decided to deregister the Company's
shares in the U.S. as wanted by the Company.
In accordance with its strategy, the Company made 13 investments during 2000 -
2002, while no new investments were made in the subsequent years. In July 2005
the Company entered an agreement with IVS A/S regarding the formation of a
jointly owned company Kommanditselskabet af 21. juli 2005
(“Kommanditselskabet”). Olicom has subscribed shares in Kommanditselskabet
through the transfer of half of its shareholding in LH Comlog A/S, Hymite A/S
and Scalado AB at a total value of tDKK 17,000. In addition Kommanditselskabet
has against cash payments of a total of tDKK 17,000, which were subscribed and
paid by IVS A/S, acquired the other half of Olicom's shareholding in these
three companies. The transfer of the Company's shareholdings in these portfolio
companies took place at book value. One investment was exited at a loss in
2001, four investments were wound up at a loss in 2002, and 5 investments were
wound up or disposed in 2006 at a loss.
As regards three of the companies (Danacell A/S, Decuma AB and Tpack A/S) the
disposal during 2006 have had little impact on the financial results for 2006
as the booked value of these companies by the end of 2005 had been written down
to the expected realized values. The disposals of the two other companies (ITE
ApS and Sifira A/S), which were made since Olicom did not have sufficient
financial resources to secure the continued operation of the two companies,
resulted in a loss in 2006 of DKK 79 million.
Investment in portfolio companies
At year-end, the Company's portfolio consisted of investments in 3 companies,
which all are held by Kommanditselskabet.
Kommanditselskabet af 21. juli 2005
Mid 2005 the Company started a co-operation with the venture company IVS A/S
regarding certain of the Company's portfolio companies. During that year the
investments in LH Comlog A/S, Scalado AB and Hymite A/S were transferred to
Kommanditselskabet af 21. juli 2005. At the end of 2006 the Company owned 35.2%
of Kommandiselskabet who's purpose is to further develop the investments.
At the end of 2006 Kommanditselskabet af 21. juli 2005 had the following
portfolio companies.
Hymite A/S
Hymite develops and markets technologies and products for hermetic sealing of
semiconductor components, optical components and MEMS (Microelectromechanical
systems) integrated circuits. Among the applications are LED. Hymite has signed
a number of cooperation agreements concerning the development of prototypes,
which are expected to lead to volume agreements or license agreements where the
customer is responsible for the volume production. During 2006 the first
production deliveries were made although still at a low volume.
During 2006 Hymite raised DKK 70 million in a new investment round with
participation from existing investors including German-American Techno Venture
Management and Swedish InnovationsKapital. Also Kommanditselskabet participated
in the investment. The participation was financed through new equity from IVS.
LH Comlog A/S
Comlog is a mobile data technology company, which develops and markets fleet
management systems for the transportation industry. Comlog has developed a
range of mobile data terminals based on GSM and GPRS mobile data technology and
GPS - the satellite based global positioning system. The GSM/GPRS technology
enables terminals to send and receive data in most of the world, and the GPS
system enables the terminals to determine their geographical position accurate
to a few meters. During 2006 Comlog launched a new product generation and
increased its revenue by approximately 30%. Further growth is expected during
2007 where Comlog will open a subsidiary in Germany.
Scalado AB
Scalado, which is located in Lund, Sweden, has developed solutions and applied
for patents for rendering and transferring digital image information
independent of communication technology. Due to the rapidly increasing
popularity of cameras integrated in mobile phones, Scalado decided in 2003 to
focus on this market as the company's technology is very suitable for
supporting the use of cameras in mobile phones and other handheld devices.
Scalado's technology solves the problems related to small bandwidth and CPU and
memory restrictions on handheld devices. Scalado has signed agreements with
producers of mobile phones such as Nokia, SonyEricsson, Samsung and others.
During 2006 the company increased its revenues by 64% and further growth is
expected in 2007. In 2006 Scalado raised a total amount of app. DKK 10 million
from IVS A/S through Kommandiselskabet and the Swedish venture company
Industrifonden.
Results
Result from ordinary primary operations
The result of the Company's ordinary primary operations was a loss of DKK
329,000. Of this, valuation adjustments of portfolio companies amounted to a
positive DKK 5.1 million, which only includes the Company's valuation
adjustments of portfolio companies.
In 2006, the Company's administrative expenses amounted to DKK 5.5 million. In
2005 these expenses were DKK 6.2 million.
Financial items
In 2006, the Company had a financial net expense amounting to DKK 5.8 million
compared to a net income of DKK 6.7 million the year before.
Income taxes
The result for 2006 is not taxable.
Result of discontinued activities
The Group had a loss of DKK 79.1 million relating to discontinued activities.
This was primarily due to the deposals of ITE ApS and Sifira A/S.
Result for the year
For 2006, the Company's net result was a loss of DKK 85,3 million, which is in
line with the previously announced expectations at the time of announcing the
results for the 3rd quarter.
BALANCE SHEET
Financial fixed assets
Investments in portfolio companies have decreased to DKK 23 million. The reason
for the decrease is the diposals of some of the portfolio companies have been
transferred.
Cash and cash equivalents
At the end of 2006, cash and cash equivalents amounted to DKK 18,000.
Shareholders' equity
Shareholders' equity in the Company at year-end was negative by DKK 3.3.
Developments in 2007
The Company has entered a conditional agreement with ADR on a share issue and
the acquisition from ADR of a real estate portfolio. The agreement is
conditional upon approval by the shareholders of the terms of the share issue.
Under the agreement ADR will secure the funding of Olicom's operations until
the completion of the share issue. After the planned share issue Olicom's
future main activity will be real estate investments. The Company's existing IT
venture capital investments are expected to be held until exits are achieved
and participation in possible follow-up investments will be considered. The
terms of the share issue, which will be presented for approval at a
shareholders' meeting, are under preparation. As announced in the Company's
Stock Exchange Announcement no. 22/2006 (December 7, 2006) it is expected,
however, that the share issue will take place at a price per share, which does
not substantially exceed the nominal value per share of DKK 0.25. It is further
expected that the size of the share issue will be DKK 175 - 200 million and
that DKK 75 - 100 million of the proceeds will be used for the acquisition from
ADR of a real estate portfolio comprising 6 - 8 business properties
predominantly located in Denmark. The gross value of the properties is expected
to be DKK 225 - 275 million. The price of the properties will be determined
based on valuations provided by independent experts. The Company has started
preparing the prospectus for the share issue and expects to complete the issue
during the first half-year of 2007.
In connection with the entering of the agreement between Olicom and ADR, Olicom
and ADR entered an agreement with Investeringsselskabet Elkær Invest A/S
(“IEI”) terminating the co-operation agreement between Olicom and IEI and
assigning IEI's loan receivables etc. to ADR.
Dividends
It is proposed that no dividends are paid for 2006.
Financial Statements
The Company's financial statements are expected to be available on April 18,
2007. This present announcement and the complete financial statements will be
available on Olicom's web site: www.olicom.com.
Annual General Meeting
Olicom's Annual General Meeting will be held at DTU, Building 101A (conference
room 1) Kgs. Lyngby, Denmark on Thursday, April 26, 2007 at 3.00 p.m.
Attachments
Income Statement, Balance Sheets a specification of the development of
shareholders' equity and statement of cashflow for the Group are enclosed as
attachments.
Virum, March 29, 2007
The Board of Directors
About Olicom
Further information about Olicom can be found at www.olicom.com or obtained by
contacting CEO Boje Rinhart tel. +45 4527 0000 or e-mail TTTbri@olicom.com.
Forward Looking Statements
This announcement contains forward looking statements, which are subject to
risks and uncertainties, which may cause actual results to differ from the
anticipated results.
Please look at the attached file to se the full announcement
