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Annual report 2005

In 2005 Danware resolved to launch a number of initiatives intended to strengthen the position in our three current business areas in order to build a platform for future growth. As part of the growth ambitions, Danware has revised the sales and marketing strategy – including the establishment of a distribution subsidiary on the US market – intensified the product development and decided to take a focused approach to acquiring businesses or new technologies that can contribute to strengthening the company's market position. According to the Management's view current conditions offer opportunities for creating growth and satisfactory earnings. Danware is in a position to supply the right products and all three business areas have attractive market conditions.

  • Total revenue for the year was DKK 91.3m, compared with DKK 96.0m in 2004
  • Revenue from NetOp Remote Control fell by 7% due to weak demand growth for traditional software for the remote control of computers and fewer large orders than in 2004.
  • Revenue from NetOp School fell by 2% due to, among other things, more competitive markets.
  • In 2005, Danware acquired 50% of the shares in EnoLogic, a software business that has developed a number of technologically innovative products, including a net filter. Danware launched the NetOp NetFilter security product after the end of the financial year.
  • Operating profit (EBIT) was DKK 18.3m in 2005 (DKK 32.0m in 2004), which translates into an EBIT margin of 20%.
  • Pre-tax profit was DKK 21.2m against DKK 35.5m in 2004, while the net profit for the year was DKK 14,6m against DKK 24.4m in 2004.
  • The Board of Directors proposes that no dividend be paid in respect of the 2005 financial year.
  • Revenue for 2006 is expected to improve by 10-20% to the DKK 100-110m range. Operating profit (EBIT) is expected to be approximately DKK 18m in line with the level achieved in 2005. Due to the many sales and distribution initiatives scheduled for 2006 the actual profit may deviate from the above forecasts.

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