Quarterly figures in difficult environment at previous year's level
NorCom Information Technology GmbH & Co. KGaA generated total revenues of EUR 10.0 million in the first nine months of the current financial year (2017: EUR 10.2 million). EBITDA (earnings before interest, taxes, depreciation and amortization) stood at EUR 0.9 million at the end of the third quarter (2017: EUR 1.1 million). NorCom has a stable development after all - despite the currently unfavorable market conditions for the most important customer group, the automobile companies, which also impose a difficult environment for service providers and suppliers.
With its innovative software solutions EAGLE and DaSense, the first large-scale market to win was the automotive industry and NorCom successfully completed its market entry.
The introduction of the Enterprise Collaboration solution EAGLE at Audi is proceeding according to plan and the potential of the project is great: The software will be fully integrated into the existing IT landscape of the company - with the goal that in the last stage more than 20,000 users will be able to find, edit, save and share 500 million documents. EAGLE then replaces the existing internal drive. On the part of the customer, there is a long-term commitment to a common roadmap, which defines the further development of EAGLE over the next few years. Together with the responsible department at Audi, NorCom is now launching the marketing and advertising of EAGLE within the Group.
The Big Data analysis tool DaSense is also used in the automotive industry and is used primarily in the field of research and development. DaSense is used in numerous projects at the companies Daimler, AMG, BMW, Stihl as well as in the research project Alp.Lab. Despite positive results in the individual projects, the full potential of DaSense is currently not exhausted. The current difficulties facing the automotive industry, which particularly affect NorCom customers, are causing delays in projects, and the austerity measures taken are making new comissioning difficult. DaSense has been successfully installed by all customers, but some of the calculated high volumes of data are not yet fully available for analysis by DaSense. The monthly fee for DaSense, which is measured by the volume of data, is therefore not currently being billed as planned, which will keep sales stable at the previous year's level.
Investments for partner acquisition
To grow further, reach a larger market, and build strong, global sales, NorCom seeks collaboration with strategic partners. On 10/10/2018 the signing of a comprehensive partner contract with AVL List GmbH was announced. A contract with a second partner is to follow this year.
The partners will be able to handle the entire sales process around DaSense and install the software at the customer's site without the support of NorCom. In order to ensure smooth distribution through third parties, further investments in the product were necessary in the third quarter.
"We believe that a strong partner network is our key to success and will continue to pursue that strategy. We look forward to exciting projects with our partners and pathbreaking impulses for the further growth of our products ", says Viggo Nordbakk, Managing Director of NorCom IT GmbH & Co. KGaA.