Norkom Reports Strong EBITDA and Continued Increase in Revenues

The company reports the following key financials:

• Revenue up 2% to €24.6 million in the six-month period to 30 September 2009 (H1 2010) (H1 2009: €24.2 million) and 3.5% on our H2 Financial Year to 31 March 2009 (€23.8 million)
• EBITDA up 8% to €4.3 million (H1 2009: €4.0 million)
• Post Contract Support (PCS) up 46% to €3.3 million (H1 2009: €2.3 million) which now increases our recurring revenue line to 13% of total revenue
• Adjusted Diluted EPS up 7% to 4.22 cents (H1 2009: 3.95 cents)
• Net cash inflow generated from operations of €4.7 million (H1 2009: €0.6 million)
• Net cash of €30.5 million (March 2009: €26.1 million).

Half Year Results

Key business highlights for the period included the following:

• Norkom continues to execute and win new clients in its target regions with eight new clients added during the six months to 30 September 2009 (H1 2010), whilst it continues to expand its existing client relationships, which delivered 89% of total revenue during this period (H1 2009: 77%) through follow-on re-investment in Norkom’s solutions
• The Group’s most recent geographical expansion in to the Middle East continues as it has recently won its second and third new clients in the last 12 months in the region
• Its European region has grown from strength-to-strength, where revenue increased by 15% to €5.8 million (H1 2009: €5.0 million)
• Norkom’s focus on Fraud solutions continues to be rewarded and the company now has 22 clients as part of its franchise in this area (H1 2009:14)
• Its associate, Digital Harbor, has established itself as a serious contender in the healthcare fraud industry, closing two transactions during the period.

Commenting on the half year results, Norkom’s chief executive officer, Paul Kerley, said:

“We are clearly pleased to have produced these results particularly in a period of significant upheaval and crisis in our core market. Our capacity to expand our reach into new markets, while, in parallel, generating significant pull-through business from our existing clients, places the company in a strong position to capitalise on a return to normal buying behaviour in our market. While the crisis provided a challenge for Norkom, the strength of our market franchise, solutions and business model made it easier to withstand compared to some of our competitors, which have exited the market. With this market consolidation and the continued endorsement of our solutions by industry analysts, we expect to pick up a greater share of the returning demand in the market, underpinning our plans to return to normal levels of growth for Norkom.”

To download the full interim report, please log onto www.norkom.com/about-us/investor-relations/financial-results.html.

About Norkom Technologies (www.norkom.com)

Norkom Technologies (AIM: NORK.L, IEX: NORK.IE) enables financial organisations to take intelligent action, control defences, and evolve strategies against fraud, money laundering, and other types of financial crime. By combining a unique investigative technology platform with deep domain expertise, Norkom has established a solid track record of reducing financial losses, protecting users’ reputations, improving operational efficiencies and lowering the cost of information technology.

Norkom Group plc
Fiona McLoughlin, +3531 873 9612
Marketing Manager
fiona.mcloughlin@norkom.com
or
Paul Kerley, +3531 873 9600
Chief Executive Officer
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Liam Davis, +3531 873 9600
Chief Financial Officer
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Q4 Public Relations
Gerry O’Sullivan, +353 1 475 1444
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Nuala Buttner, +353 1 475 1444
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Goodbody Stockbrokers (IEX adviser and joint broker)
Linda Hickey, +353 1 641 6017
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Simon Howley, +353 1 641 6017
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Cenkos Securities plc (AIM adviser and joint broker)
Stephen Keys, +44 (0) 20 7397 8900
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Camilla Hume, +44 (0) 20 7397 8900