Investors / Media room / Corporate news / Strong advance in Danware revenue

Strong advance in Danware revenue

Danware’s profit announcement for the six months to 30 June 2006 revealed almost a 10% y/y revenue improvement. The performance is testimony to the initial results of the re-adjustment of the company’s ambitious sales strategy, including a successful establishment of a US subsidiary. Danware maintains its revenue forecast of DKK 105-120m for the full year 2006.

Copenhagen, Denmark, 15 August 2006 – Danish software company Danware released its profit announcement for the first half of 2006 earlier today. The financial highlights for the six-month period were:

  • Q2 revenue rose to DKK 27.4m from DKK 21.8m in Q2 2005
  • Revenue for the first half-year was DKK 49.0m, up from DKK 44.8m in the first half of 2005
  • EBIT was DKK 0.8m in Q2 2006 compared with DKK 4.1m in the same period of last year
  • EBIT was DKK 1.8m in H1 2006 against DKK 7.3m in the year-earlier period

As the figures show, Danware reported a sharp revenue increase, both in the second quarter and in the first half of 2006. Revenue improved by 9.4% y/y in the first half-year, backed by stronger sales in Danware’s core regions: the USA and EMEA (Europe, Middle East and Africa).

“We’re very pleased to see our strategy of lifting sales really beginning to pay off. Naturally, we still face a number of challenges in our efforts to meet our ambitious targets, but we’ve taken a big step in the right direction with this first-half performance. We’ve put a lot of effort into getting our new US subsidiary on track, so we’re very pleased to see that the business is off to a good start,” said Danware CEO Peter Grøndahl.

Danware’s US subsidiary will be followed by two more subsidiaries that will begin operations in Germany and the UK this coming autumn to handle distribution and sales of the NetOp® products through a channel of certified NetOp® partners.

Chairman satisfied with the performance
Danware chairman Ib Kunøe also expressed satisfaction with the profit announcement:

“This being a transition year for Danware, 2006 is a period of very strong activity in the company. We’ve put a lot of effort into implementing a profitable sales and marketing strategy, and I’m very pleased that we’re now beginning to reap the results of the new activities. Danware’s first-half results are highly satisfactory and I’m confident that the market will respond favourably,” said the Danware chairman.

Danware’s core products are Desktop Management products, offering advanced IT remote control. In the first six months of 2006, Danware generated revenue of DKK 36.3m in this product category, a substantial improvement from DKK 31.1m in the first six months of 2005. During the second quarter, Danware launched new versions of its NetOp Remote Control and NetOp School software.

In addition, Danware agreed with Topnordic/Ementor in April 2006 to acquire the rights to the M-Net products, a set of tools to standardise the implementation and operation of Microsoft-based networks and to minimise resource requirements in day-to-day operations. Also in April, Danware acquired Cursum, a software business that has developed a technical platform enabling organisations to develop, implement and manage courses, training programmes, and questionnaires to employees, customers and business partners via the Internet. Furthermore, the platform makes it easy to organize their employees’ competences.

“Both the integration of the M-Net activities and the sales of M-Net products are performing in line with expectations. Revenue generated from the Cursum product is also developing favourably. Initially, we will be selling the Cursum product on a stand-alone basis, but going forward we will work to integrate the product even more with Danware’s other products for computer-based teaching. We believe this to be very promising for our M-Net operations and for the sale of Cursum products,” says Peter Grøndahl.

At the end of the second quarter, Danware signed two new OEM agreements with customers in the US market. These agreements also contributed to the first-half profit.

Danware maintains its full-year forecasts of revenue of DKK 105-120m and EBIT of DKK18m for 2006. However, the ongoing implementation of the company’s sales and marketing strategy means that the financial expectations are subject to a certain degree of risk.

About Danware A/S
Danware A/S develops and markets software products based on the NetOp® technology: a technology enabling the swift, stable and secure transfer of screen images, sound and data between two or more computers. Danware’s three product areas are NetOp® Remote Control, NetOp® School and Security. NetOp® Remote Control enables remote control of one or more computers, while NetOp® School is used for computer-based classroom teaching.

The Security business includes the NetOp® Netfilter and the NetOp® Desktop Firewall, a distributed firewall for monitoring process execution and communications on PCs. Danware’s products are sold in more than 80 countries. In 2005, the company generated revenue of DKK 91.3m. Listed on the Copenhagen Stock Exchange, Danware is a component of the SmallCap+ index.