DUBLIN-BASED security software firm Norkom has reported a 14 per cent rise in pretax profits to €3.18 million for the six months to the end of September despite a slowdown in revenue growth.
Revenue in the first half of the company’s financial year grew by 2 per cent to €24.6 million compared to a 37 per cent increase in revenue during the same period last year.
The fall off in revenue was attributable to a slowdown in the company’s US division, which saw a 13 per cent fall in revenue mainly due to the collapse of one of Norkom’s biggest US clients, American bank Washington Mutual.
Norkom chief executive Paul Kerley said that the company was “pleased” with the results. “Norkom has sustained consistent growth, despite the significant upheaval in our core market. Unlike other companies, we have not gone into the red.”
The company said yesterday that ebitda for the six-month period to September 2009 increased 8 per cent to €4.3 million as against €4 million for the same period last year.
CFO Liam Davis said that the group’s healthy balance sheet and strong cash position meant it can continue to expand. Net cash inflow generated from operations was €4.7 million as against €0.6 million last year while net cash rose to €31.7 million from €27.5 million.
Norkom said it gained eight new clients during the period. However, close to 90 per cent of first-half revenue came from existing customers who re-invested in the company’s products.
Mr Kerley said Norkom, which provides anti-fraud and security software to financial institutions, will benefit from changes that are taking place in the regulatory system worldwide.
