Announcement No. 2-2008
5 February 2008
Change in Management and adjustment of 2007 profit forecast
Our Q4 2007 revenue fell short of expectations, pushing the profit for the
quarter to well below expectations.
Desktop Management revenue was largely unchanged in 2007 relative to the 2006
figure, whereas Education revenue fell sharply. Education revenue was affected
by the previous termination of agreements with the distributors in the principal
markets, because in the subsequent period Danware focused mainly on developing
business partner channels for its Desktop Management products, the company's
largest business area, and, to a lesser extent, on developing business partner
channels for its Education products. This focus had a negative impact on
revenue.
As there are no significant variable factors in Danware's cost structure, the
recorded revenue setback has triggered a largely corresponding setback in
EBITDA.
Q4 revenue was DKK 18.0 million against the forecast of DKK 23-33m, while EBITDA
was a loss of DKK 12m against a forecast loss of DKK 4m.
Based on the Q4 performance, revenue for 2007 is expected to amount to DKK 85m,
against the previous guidance of DKK 90-100m. EBITDA for 2007 is expected to be
a loss in the order of DKK 21 million, against the previously expected loss of
approximately DKK 13 million.
In the fourth quarter of 2007, we continued the work to develop the activities
that will bring Danware back on the growth track. For example, we have made a
dedicated effort to enhance revenue in the Education segment, which is currently
experiencing strong market growth. As the anticipated growth has failed to
materialise, Danware management has resolved to split the sales and marketing
functions in Desktop Management and Education. The markets for these two
segments have become much more focused, which makes greater demands on both the
sales channel and the marketing efforts in the individual areas.
In connection with the financial results for 2007, Danware's CEO Peter Grøndahl
has tendered his resignation, but he will make his services available to the
company until a new CEO has been found. Peter Grøndahl had planned to resign as
CEO as part of a generational change and to serve on the Board of Directors once
the new organisation would be in place in the spring of 2008. However, due to
the developments in 2007, Mr Grøndahl has asked to accelerate the plan and
resign immediately, even though all changes planned for the organisation are
still not in place.
Forecasts for the 2008 financial year will be announced on 11 March 2008 in
connection with the release of the annual report for 2007.
Contact
Ib Kunøe, Chairman of the Board of Directors, tel. +45 4586 8077
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® Process Control 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.
Danware is listed on the OMX Nordic Exchange Copenhagen A/S (symbol DANW) and is
a component of the Small Cap+ index.
Translation In the event of any inconsistency between this document and the
Danish language version, the Danish language version shall be the governing
version.
