05/12/2022

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NorCom Information Technology GmbH & Co. KGaA achieved total revenues of EUR 3.0 million in the first quarter of 2022 (Q1 2021: EUR 3.2 million). The EBITDA (earnings before interest, taxes, depreciation and amortization) was positive at EUR 0.1 million (Q1 2021: EUR 0.1 million).

 

After an initial delay, the projects won last year have now started in full. Recruiting employees remains a challenge for NorCom in order to fully realize the sales potential of the projects and to be able to process orders adequately. NorCom can compensate for short-term bottlenecks with external employees, but this has a negative impact on the margin. NorCom therefore conducts intensive recruiting in order to cover the need for personnel and to replace external employees with internal ones.

 

"Our business development is in stable waters: Although sales are still below plan, we can regularly agree on further orders with our long-standing customers," comments Dr. Tobias Abthoff the business development in the first quarter. "The focus is now on optimizing our project work for greater profitability and, of course, further expanding the business."

 

Strategy: flexible offers

NorCom relies on a flexible and integrated offer, the boundaries between project and product business are becoming more blurred. One approach to acquiring new customers is to lower the barrier to entry in the product business. This is done through a flexible range of apps that customers can use without a large initial investment.

 

In order to expand existing business relationships, the consulting and product teams are more closely integrated. For customers who have installed DaSense, NorCom takes over the creation of individual AI modules in project orders, for example. For consulting customers, NorCom can draw on software components that have already been developed.

 

NorCom also focuses on the openness of the offer: NorCom integrates all existing third-party systems - but also has its own software integrated into third-party providers. With the AI app development kit, NorCom offers customers and partners the opportunity to develop their own AI apps.

 

Outlook

After Corona, the war in Ukraine and rising inflation are now causing uncertainty in planning. Despite the uncertain situation, NorCom expects one in 2022  slight increase in sales compared to the previous year. NorCom expects several new tenders in 2022 on the subject of digitalization in public administration, as the current government is focusing on this.  The orders from the public administration and additional orders from the new Professional Services area are intended to stabilize the business and allow it to grow.

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