Exhibit 99.1
Stock Exchange Announcement No. 6/2005
Copenhagen, Denmark
April 28, 2005
Olicom Reports First Quarter 2005 Results
Olicom A/S (Other OTC: OLCMF) today announced a net loss for the first quarter of 2005 of 3.3 million Danish kroner (“DKK”), or US$0.6 million. The loss per share was DKK 0.19, or US$0.03 per share. All amounts expressed in dollars are calculated at the March 31, 2005, rate of exchange between the US dollar and the Danish krone.
As of March 31, 2005, shareholders’ equity was DKK 215.1 million, or US$37.4 million, corresponding to DKK 12.39 per share, or US$2.16 per share.
The result for the quarter is negatively impacted by financial expenses related to the loan agreement entered in February 2005, while shareholders’ equity is positively impacted by the Company’s sale of treasury shares.
Effective 2004 Olicom also prepares consolidated financial statements in which Interactive Television Entertainment ApS (“ITE”) is consolidated. The consolidated financial statements show a loss for the quarter of DKK 8.0 million, or US$1.4 million and shareholders’ equity as of March 31, 2005, of DKK 176.8 million, or US$30.8 million. Olicom considers that the results of its venture investment activities are best reflected in the financial statements for Olicom A/S in which ITE and the other portfolio companies are included at market value.
During the quarter the portfolio companies’ development was generally in line with expectations, but with both positive and negative deviations.
For various reasons including a change of distributor in Poland ITE realized a lower than budgeted revenue for the quarter. Bookings during the quarter were, however, satisfactory, and the order back-log at the end of the quarter was higher than usual. The order back-log includes among others ITE’s 2nd sale of TV shows to China, where the Hugo-figure is scheduled to be launched in the Hubei province. Following this 145 million Chinese have the opportunity to watch the Hugo-figure on their local TV station. In the U.S. Namco launched the first Hugo-game during April. This is the first time Hugo-games are being marketed in the U.S. by a major distributor. ITE’s co-operation with Namco has just been expanded through the signing of yet a distributor agreement according to which Namco will contribute to the financing of the development of new Hugo-games including the porting of games to platforms for which Hugo-games have not previously been available.
During the quarter both Comlog, which markets fleet management systems for truck fleets, and Scalado, which provides software for camera phones, continued their strong revenue growth. Scalado’s imaging technology is now being delivered to Nokia, Samsung, SonyEricsson and others. Hymite, which develops technology for optical components, experienced an increasing interest from very important component manufacturer. For now prototyping projects are the subject of discussions, but more of these projects may result in significant volume agreement. Tpack, which delivers technology for telecommunications, and
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Sifira, which develops messaging solutions for telecommunications operators, experienced delays in closing expected sales orders.
For the purpose of strengthening Olicom’s cash position the Company has today entered loan agreements with related parties. The total of the loans amounts to DKK 5.6 million, or US$1 million, half of the amount is not repayable until November 2007, but may be converted to shares at the market share price at the time of entering the loan agreements. The Company does not provide any collateral for the loans, which carry an interest of 25 pct. p.a. The reason for entering the loan agreements is, that customary bank facilities have proven not to be available to the Company. The agreed terms are comparable to the terms which the Company has previously been offered by a non-related lender as announced in the Company’s stock exchange announcement no. 4/2005 dated 14 February 2005. The Company may at any time repay the loans.
The result for the quarter does not give reason to change the earlier announced expectation of a loss for the full year of DKK 10 — 15 million, or US $1.7 — 2.6 million assuming that it will not be necessary to write off portfolio investments and assuming that significant write downs will not be made during 2005. Olicom is actively pursuing exit sales of certain portfolio companies, but does not include such sales in its expected result.
For further information please contact Olicom CEO Boje Rinhart, tel. +45 4527 0000 or
e-mail bri@olicom.com.
Attachments
Summary of Income Statement and Balance Sheet follow.
About Olicom
Olicom invests in leading edge information technology and communication technology companies located in Scandinavia. The main office is located in the Øresund region and the US office is located in the Dallas Telecom Corridor in Richardson, Texas. Olicom is listed on the Copenhagen Stock Exchange and in the USA the company’s stock is traded on Other OTC, under the symbol OLCMF.
Further information about Olicom can be found at www.olicom.com or obtained by contacting CEO Boje Rinhart tel. +45 4527 0000 or e-mail bri@olicom.com.
Except for historical information contained herein, the matters discussed in this news release may contain forward-looking statements that reflect the Company’s current expectations and projections about its future results, performance, prospects and opportunities. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties and other factors that could cause its actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Among the risks, uncertainties and other factors that could cause results to differ are uncertain market conditions, the successful implementation of the Company’s new strategic direction; the Company’s need to continue to identify and acquire interests in suitable portfolio companies; intense competition among capital providers to acquire interests in technology companies; the dependence of the Company on the financial and operating success of the enterprises in which it invests or participates; and existing and future regulations affecting the Company’s business, the businesses of its portfolio companies or technology generally. Further information may be found in Olicom’s periodic filings with the U.S. Securities and Exchange Commission (SEC), including the most recent reports on Form 20-F and 6-K, which identify important risk factors related to the Company’s business that could cause actual results, performance, prospects or opportunities to materially differ from those contained in the forward-looking statements.
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Attachments — Summary of Income — Olicom A/S (Parent Company)
Three months | ||||||||||||
Ended March 31, | ||||||||||||
2004 | 2005 | 2005 | ||||||||||
Convenience | ||||||||||||
translation | ||||||||||||
DKK 1,000 | USD 1,000 | |||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||
Valuation adjustments, portfolio companies | 0 | 0 | $ | 0 | ||||||||
Gross profit | 0 | 0 | 0 | |||||||||
Operating expenses | ||||||||||||
General and adminstrative | 1,894 | 1,893 | 329 | |||||||||
Restructuring charges | (9 | ) | (160 | ) | (28 | ) | ||||||
Total operating expenses | 1,885 | 1,733 | 301 | |||||||||
Income/(loss) from operations before interest and income taxes | (1,885 | ) | (1,733 | ) | (301 | ) | ||||||
Interest income and other, net | 472 | (1,579 | ) | (275 | ) | |||||||
Income/(loss) before income taxes | (1,413 | ) | (3,312 | ) | (576 | ) | ||||||
Income taxes | 0 | 0 | 0 | |||||||||
Net income/(loss) | (1,413 | ) | (3,312 | ) | ($576 | ) | ||||||
Earnings/(loss) per share, basic | (0.08 | ) | (0.19 | ) | ($0.03 | ) | ||||||
�� | ||||||||||||
Earnings/(loss) per share, diluted | (0.08 | ) | (0.19 | ) | ($0.03 | ) | ||||||
Weighted average shares outstanding including common stock equivalents, basic | 16,938 | 17,148 | 17,148 | |||||||||
Weighted average shares outstanding including common stock equivalents, diluted | 16,938 | 17,148 | 17,148 |
The balance sheets and statements of income include a convenience translation for the most recent reporting period by applying the quarter-end exchange rate of DKK 5.7463 per US$ 1.00. This translation should not be construed to imply that the DKK amounts actually represent, or have been or could have been converted to, U.S. dollars
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Attachments — Summary of Balance Sheet — Olicom A/S (Parent Company)
December 31, | March 31, | March 31, | ||||||||||
2004 | 2005 | 2005 | ||||||||||
Convenience | ||||||||||||
translation | ||||||||||||
DKK 1,000 | USD 1,000 | |||||||||||
Assets | (audited) | (unaudited) | (unadudited) | |||||||||
Investments, property and equipment, net | 34 | 21 | $ | 4 | ||||||||
Investments in portfolio companies | 83,649 | 84,796 | 14,757 | |||||||||
Investments in affiliated companies | 22,372 | 22,372 | 3,893 | |||||||||
Outstanding amounts affiliated companies | 20,000 | 20,000 | 3,481 | |||||||||
Total fixed assets | 126,055 | 127,189 | 22,135 | |||||||||
Long-term assets | 169 | 208 | 36 | |||||||||
Accounts receivable | 951 | 123 | 21 | |||||||||
Outstanding amounts, affiliated companies | 21,351 | 25,425 | 4,425 | |||||||||
Outstanding amounts, portfolio companies | 61,366 | 62,453 | 10,868 | |||||||||
Prepaid expenses and other currents assets | 932 | 1,017 | 177 | |||||||||
Cash and cash equivalents | 11,016 | 16,790 | 2,922 | |||||||||
Total current assets | 95,616 | 105,808 | 18,413 | |||||||||
Total assets | 221,840 | 233,205 | $ | 40,584 | ||||||||
Liabilities and shareholders’ equity | ||||||||||||
Shareholders’ equity | 215,197 | 215,110 | $ | 37,435 | ||||||||
Restructuring charges | 464 | 480 | 84 | |||||||||
Total provisions | 464 | 480 | 84 | |||||||||
Other liabilities | 0 | 5,204 | 905 | |||||||||
Total long-term liabilities | 0 | 5,204 | 905 | |||||||||
Accounts payable and accrued liabilities | 6,179 | 12,411 | 2,160 | |||||||||
Total current liabilities | 6,179 | 12,411 | 2,160 | |||||||||
Total liabilities | 6,179 | 17,615 | 3,065 | |||||||||
Total liabilities and shareholders’ equity | 221,840 | 233,205 | $ | 40,584 | ||||||||
The balance sheets and statements of income include a convenience translation for the most recent reporting period by applying the quarter-end exchange rate of DKK 5.7463 per US$ 1.00. This translation should not be construed to imply that the DKK amounts actually represent, or have been or could have been converted to, U.S. dollars
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Attachments — Investments in Portfolio Companies
Investments in Portfolio Companies as of March 31, 2005
Owner's share (Non-diluted) | Investment (DKK 1,000) | |||||||||
Danacell A/S | 16.7 | % | 1,229 | |||||||
Decuma AB | 16.8 | % | 14,300 | |||||||
Hymite A/S | 8.7 | % | 15,549 | |||||||
ITE ApS | 100.0 | % | 22,373 | |||||||
LH Comlog A/S | 22.5 | % | 12,500 | |||||||
Scalado AB | 48.2 | % | 25,466 | |||||||
Sifira A/S | 57.2 | % | 17,961 | |||||||
Tpack A/S | 22.3 | % | 12,505 | |||||||
Total investment | 121,883 | |||||||||
Valuation adjustments | (14,715 | ) | ||||||||
Investments in portfolio companies | 107,168 |
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Attachments — Summary of Income — The Group
Three months | ||||||||||||
Ended March 31, | ||||||||||||
2004 | 2005 | 2005 | ||||||||||
Convenience | ||||||||||||
translation | ||||||||||||
DKK 1,000 | USD 1,000 | |||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||
Net sales | 7,611 | 5,765 | $ | 1,003 | ||||||||
Production costs | 5,929 | 7,154 | 1,245 | |||||||||
Valuation adjustments, portfoliocompanies | 0 | 0 | 0 | |||||||||
Gross result | 1,682 | (1,389 | ) | (242 | ) | |||||||
Operating expenses | ||||||||||||
General and administrative | 1,518 | 1,267 | 221 | |||||||||
Sales and distribution | 4,373 | 3,766 | 655 | |||||||||
Restructuring charges | (9 | ) | (160 | ) | (28 | ) | ||||||
Total operating expenses | 5,882 | 4,873 | 848 | |||||||||
Income/(loss) from operations before interest and income taxes | (4,200 | ) | (6,262 | ) | (1,090 | ) | ||||||
Interest income and other, net | 284 | (1,745 | ) | (303 | ) | |||||||
Income/(loss) before income taxes | (3,916 | ) | (8,007 | ) | (1,393 | ) | ||||||
Income taxes | 0 | 0 | 0 | |||||||||
Net income/(loss) | (3,916 | ) | (8,007 | ) | ($1,393 | ) | ||||||
Earnings/(loss) per share, basic | (0.23 | ) | (0.47 | ) | ($0.08 | ) | ||||||
Earnings/(loss) per share, diluted | (0.23 | ) | (0.47 | ) | ($0.08 | ) | ||||||
Weighted average shares outstanding including common stock equivalents, basic | 16,938 | 17,148 | 17,148 | |||||||||
Weighted average shares outstanding including common stock equivalents, diluted | 16,938 | 17,148 | 17,148 |
The balance sheets and statements of income include a convenience translation for the most recent reporting period by applying the quarter-end exchange rate of DKK 5.7463 per US$ 1.00. This translation should not be construed to imply that the DKK amounts actually represent, or have been or could have been converted to, U.S. dollars
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Attachments — Summary of Balance Sheet — The Group
December 31, | March 31, | March 31, | ||||||||||
2004 | 2005 | 2005 | ||||||||||
Convenience | ||||||||||||
translation | ||||||||||||
DKK 1,000 | USD 1,000 | |||||||||||
Assets | (audited) | (unaudited) | (unadudited) | |||||||||
Intangible fix assets | 45,042 | 43,631 | $ | 7,593 | ||||||||
Investments, property and equipment, net | 607 | 1,279 | 222 | |||||||||
Investments in portfolio companies | 83,649 | 84,796 | 14,757 | |||||||||
Total fixed assets | 129,298 | 129,706 | 22,572 | |||||||||
Long-term assets | 169 | 208 | 36 | |||||||||
Inventory | 398 | 216 | 38 | |||||||||
Accounts receivable | 5,984 | 4,028 | 701 | |||||||||
Outstanding amounts, portfolio companies | 61,366 | 62,453 | 10,868 | |||||||||
Prepaid expenses and other currents assets | 1,759 | 1,755 | 306 | |||||||||
Cash and cash equivalents | 11,184 | 16,993 | 2,957 | |||||||||
Total current assets | 80,293 | 85,229 | 14,832 | |||||||||
Total assets | 210,158 | 215,359 | $ | 37,478 | ||||||||
Liabilities and shareholders’ equity | ||||||||||||
Shareholders’ equity | 181,539 | 176,758 | $ | 30,760 | ||||||||
Restructuring charges | 464 | 480 | 84 | |||||||||
Total provisions | 464 | 480 | 84 | |||||||||
Other liabilities | 0 | 5,204 | 906 | |||||||||
Total long-term liabilities | 0 | 5,204 | 906 | |||||||||
Credit bank | 11,567 | 9,631 | 1,676 | |||||||||
Accounts payable and accrued liabilities | 16,588 | 23,286 | 4,052 | |||||||||
Total current liabilities | 28,155 | 32,917 | 5,728 | |||||||||
Total liabilities | 28,155 | 38,121 | 6,634 | |||||||||
Total liabilities and shareholders’ equity | 210,158 | 215,359 | $ | 37,478 | ||||||||
The balance sheets and statements of income include a convenience translation for the most recent reporting period by applying the quarter-end exchange rate of DKK 5.7463 per US$ 1.00. This translation should not be construed to imply that the DKK amounts actually represent, or have been or could have been converted to, U.S. dollars
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