Comment on the first quarterly figures for 2020
NorCom Information Technology GmbH & Co.KGaA (ISIN DE000A12UP37, General Standard) started the year 2020 steadily with a total output of EUR 3.5 million (Q1 2019: EUR 3.4 million). EBITDA (earnings before interest, taxes, depreciation and amortization) was positive at EUR 0.1 million (Q1 2019: EUR 0.2 million).
The Corona crisis was noticeable very early on, particularly in the automotive industry, in which NorCom serves central customers, and resulted in the car market, which had been characterized by uncertainty for months, for some completely stopping orders. But the solid base of long-standing existing customers ensured reliable sales for NorCom in the first quarter.
“With our existing orders, we were in calm waters in the first quarter - with the prospect of significant new orders. At the end of the first quarter, the Corona crisis reached the economy, which overruled all planning and strategies and posed completely new challenges for companies indefinitely,” comments Viggo Nordbakk, Managing Director of NorCom, about the business situation. “From today's point of view, the first quarter is definitely positive - slight sales increases compared to the previous year and still a good result is a satisfactory balance in the current situation. In the second quarter, the effects of the Corona savings plans will become clearer in the figures. However, with the public authorities, we count clients among our customers, who enable ongoing business even in times of crisis. "
Diversification in all business areas
To position itself as future-proof and more independent of individual industries, NorCom expanded its product portfolio with new topics and applications in the first quarter:
"In the first quarter, we started to develop a comprehensive diversification strategy and implement it in all of our business areas," explains Nordbakk. "This way we want to open up new markets with modifications or intensifications of our existing products. For example, we “separate” individual function blocks from DaSense and EAGLE to offer customers a lean solution for their specific application. For this purpose, we create, among other things, industry-specific, topic-related industrial solutions for the optimization of business processes in the new Solutions division. We apply this approach to all of our business areas.”
Diversification of Consulting / Services
In the Consulting / Services area, NorCom has expanded its core team of consultants with expertise in document processing. With this new offer, NorCom specifically meets the needs of its customers in harnessing the potential of new deep learning and natural language processing methods for mapping document-based business processes, e.g. Contract management, aftersales and legal hold.
The NorCom Academy was also established, in which NorCom organizes a tried and tested range of training courses on the practical application of Big Data & AI technologies under one roof. Thanks to virtual classroom technology, all training courses can be carried out in full as webinars - and thus offer an attractive opportunity for further training, especially in the current situation.
Diversification of Products
The Big Data Analytics software DaSense supports the new ASAM ODS 6.1.0 standard, which bridges the gap between Open Data Services (ODS) and modern Big Data analysis. The ASAM Connector & Analytics Kit is available as an independent product, existing DaSense installations already integrate this function.
The Big Data Platform EAGLE serves cross-team collaboration and AI-based knowledge management. On the one hand, the expansion to the "legal area" was pushed forward in the first quarter: NorCom was able to gain two law firms as partners for the development of EAGLE4Legal. In the first stage, functions for the subject areas of litigation and due diligence are implemented. The software is to be used both in law firms and in the legal departments of large corporations.
With EAGLE 2.0, a new version of EAGLE was developed, which enables a lean entry into enterprise file management without migration and the secure management of any number of files and authorizations on file servers.
New business area Solutions
In the new Solutions division, NorCom offers self-contained industrial solutions for specific applications based on DaSense. NorCom currently offers a solution for industrial IoT that can be used, for example, to analyze machine data for the optimization of production processes or to evaluate usage data for the alignment of marketing strategies. This makes DaSense interesting for a wide range of industrial applications.
NorCom was also able to expand its partner portfolio and joined the Amazon Web Services Partner Network. The Amazon Partner Network is a global partnership program that technology and consulting companies can use to create solutions and services for customers. With its DaSense and EAGLE solutions, NorCom can now optimally serve customers who prefer Amazon as a technical solution.
NorCom's customers are mainly public institutions and automobile manufacturers.
The automotive sector is very badly affected by the crisis, business there is currently difficult and further developments are still uncertain. Nevertheless, NorCom will continue to be present with customers and look for opportunities for further cooperation.
The public sector is currently still stable. In this area, NorCom focuses on expanding existing projects and winning additional ones.
With the greatly expanded product portfolio and intensive sales activities, NorCom wants to open new opportunities in other industries.