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Danware generating growth in EMEA region

Danware’s key events in the first quarter were a number of company acquisitions, 3% growth generated in the EMEA region and a decision to establish wholly owned subsidiaries in the USA, the UK and Germany. The company generated net profit of DKK 1.0m on revenue of DKK 21.6m. Danware reiterates the positive expectations for 2006.

Birkerød, Denmark, 23 May 2006–Danish software company Danware released its first quarter profit announcement earlier today.

Q1 highlights:

  • Revenue was DKK 21.6m (Q1 2005: DKK 23.1m).
  • Operating profit (EBIT) was DKK 1.0m (Q1 2005: DKK 3.3m).
  • Net profit was DKK 1.0m (Q1 2005: DKK 2.6m).

Revenue was up by 3% in the EMEA region, but fell in other markets.

“Consistent with our main Q1 focus on developing and implementing a new proactive sales strategy we have taken over distribution in our core markets, setting up subsidiaries in the USA, the UK and Germany. We’re confident that this will generate positive effects later this year,” said Danware CEO Peter Grøndahl.

More product launches in the pipeline
Danware has also focused on acquiring businesses with products complementary to the existing portfolio of award-winning NetOp products.

To date, this acquisition strategy has produced the acquisition of CURSUM, a company that has developed a recognised e-learning system platform, and the purchase of the rights to the M-Net products, a set of tools to standardise the implementation and operation of Microsoft-based networks with about 100.000 users, from TOPNORDIC/Ementor.

“We suffered a drop in profit relative to last year due to the costs of restructuring our sales strategy, preparing for upcoming product launches and due to lower revenue. However, the revenue improvement in the EMEA region indicates that our new sales strategy is beginning to take effect, and we are confident that we will benefit from the new subsidiaries and the product launches, so we’re maintaining the positive forecast for 2006”, said Danware CEO Peter Grøndahl.

Danware has not changed the expectations: Danware projects revenue of DKK 105-120m and EBIT of DKK18m for the full-year 2006. Due to the many new activities the profit guidance may deviate from this forecast.

Danware is planning to launch version 5.0 of NetOp School, a leading software product for teaching in networked classrooms, and version 9.0 of the company’s award-winning remote control software, NetOp Remote Control, in the near future. More product launches are in the pipeline.