Exhibit 99.1
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Stock Exchange Announcement No. 11/2005
Copenhagen, Denmark
October 27, 2005
Copenhagen, Denmark
October 27, 2005
Olicom Reports Third Quarter 2005 Results
Olicom A/S (Other OTC: OLCMF) today announced a net loss for the third quarter of 2005 of 2.3 million Danish kroner (“DKK”), or US$0.4 million. The loss per share was DKK 0.13, or US$0.02 per share. The result for the first 3 quarters of the year is a loss of DKK 23.3 million, or US$3.8 million equivalent to a loss per share of DKK 1.35, or US$0.22. All amounts expressed in dollars are calculated at the September 30, 2005, rate of exchange between the US dollar and the Danish krone.
As of September 30, 2005, shareholders’ equity was DKK 195.1 million, or US$31.5 million corresponding to DKK 11.24 per share, or US$1.81 per share.
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 half-year of DKK 36.9 million, or US$6.0 million and shareholders’ equity as of September 30, 2005, of DKK 147.9 million, or US$23.9 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 Olicom sold to IVS an additional share of the company jointly owned by IVS and Olicom to which the shareholdings in LH Comlog and Scalado have been transferred. The sale was at book value and Olicom received a cash payment of DKK 9 million, or US$1.5 million. For the purpose of funding a follow-up investment in Scalado IVS also subscribed new shares in the jointly held company for an amount of close to DKK 2 million, or US$0.3 million. Olicom’s ownership of the jointly held company is now 46.6 per cent.
During the third quarter the portfolio companies’ development matched expectations.
ITE completed the development of this year’s new Hugo-game, Agent Hugo, which is expected to be available in retail shops in the beginning of November. ITE also completed installation of a TV-system for broadcast of Hugo Shows in the Chinese province of Hubei. Broadcasting is expected to start on 1 November 2005.
Microsoft has approved Sifira’s Instant Messaging Client, which facilitates the use of Microsoft Messenger from mobile phones. This means that Sifira as one of only a few approved vendors can offer to provide this service to telecom service providers. The interest among such service providers in being able to offer this GPRS based service is expected to be strong.
In August Scalado completed a funding round of DKK 4 million, or US$0.6 million with the participation of all of the existing investors. The increasing sale of mega-pixel camera
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phones increases the demand for Scalado’s imaging technology, which is superior to competing technologies when handling very large images.
All of the other portfolio companies continued the mainly positive trend, which also characterized the development during the first half of the year.
For the full year Olicom still expects to report a loss in the order of DKK 25 million, or US$4.0 million assuming that it will not be necessary to write off portfolio investments and assuming that further significant write downs will not be made. Olicom is actively pursuing exit sales of certain portfolio companies, but does not include such sales in its expected result.
The Board of Directors and Management have today considered and approved the Interim Report for the period January 1 — September 30, 2005 for Olicom A/S.
The Interim Report, which has not been audited, has been drawn up in accordance with the provisions in IFRS and additional provisions for companies listed on the Copenhagen Stock Exchange. The accounting policies applied are considered as appropriate so that the Interim Report gives a true and fair view of Olicom A/S’ assets, liabilities and financial position as of September 30, 2005 and of the Group’s results for the period January 1 — September 30, 2005.
For further information please contact Olicom CEO Boje Rinhart, tel. +45 4527 0000 or
e-mail bri@olicom.com.
e-mail bri@olicom.com.
Attachments
Summary of Income Statement and Balance Sheet follow.
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.
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 Statement — Olicom A/S (Parent Company)
Nine months | Three months | |||||||||||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||||||||||
2004 | 2005 | 2005 | 2004 | 2005 | 2005 | |||||||||||||||||||
Convenience | Convenience | |||||||||||||||||||||||
translation | translation | |||||||||||||||||||||||
DKK 1,000 | USD 1,000 | DKK 1,000 | USD 1,000 | |||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||||
Valuation adjustments, portfolio companies | (15,000 | ) | (14,000 | ) | $ | (2,259 | ) | (9,000 | ) | 0 | $ | 0 | ||||||||||||
Gross profit | (15,000 | ) | (14,000 | ) | (2,259 | ) | (9,000 | ) | 0 | 0 | ||||||||||||||
Operating expenses | ||||||||||||||||||||||||
General and administrative | 5,765 | 5,323 | 859 | 1,739 | 1,504 | 243 | ||||||||||||||||||
Restructuring charges | (38 | ) | (263 | ) | (42 | ) | 9 | 0 | 0 | |||||||||||||||
Total operating expenses | 5,727 | 5,060 | 817 | 1,748 | 1,504 | 243 | ||||||||||||||||||
Income/(loss) from operations before interest and income taxes | (20,727 | ) | (19,060 | ) | (3,076 | ) | (10,748 | ) | (1,504 | ) | (243 | ) | ||||||||||||
Interest income and other, net | 389 | (4,230 | ) | (682 | ) | 76 | (777 | ) | (125 | ) | ||||||||||||||
Income/(loss) before income taxes | (20,338 | ) | (23,290 | ) | (3,758 | ) | (10,672 | ) | (2,281 | ) | (368 | ) | ||||||||||||
Income taxes | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Net income/(loss) | (20,338 | ) | (23,290 | ) | $ | (3,758 | ) | (10,672 | ) | (2,281 | ) | $ | (368 | ) | ||||||||||
Earnings/(loss) per share, basic | (1.20 | ) | (1.35 | ) | $ | (0.22 | ) | (0.63 | ) | (0.13 | ) | $ | (0.02 | ) | ||||||||||
Earnings/(loss) per share, diluted | (1.20 | ) | (1.35 | ) | $ | (0.22 | ) | (0.63 | ) | (0.13 | ) | $ | (0.02 | ) | ||||||||||
Weighted average shares outstanding including common stock equivalents, basic | 16,938 | 17,288 | 17,288 | 16,938 | 17,357 | 17,357 | ||||||||||||||||||
Weighted average shares outstanding including common stock equivalents, diluted | 16,938 | 17,288 | 17,288 | 16,938 | 17,357 | 17,357 |
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 6.1970 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, | September 30, | September 30, | ||||||||||
2004 | 2005 | 2005 | ||||||||||
Convenience | ||||||||||||
translation | ||||||||||||
DKK 1,000 | USD 1,000 | |||||||||||
Assets | (audited) | (unaudited) | (unaudited) | |||||||||
Investments, property and equipment, net | 34 | 13 | $ | 2 | ||||||||
Investments in portfolio companies | 83,649 | 57,796 | 9,327 | |||||||||
Investments in affiliated companies | 22,372 | 22,372 | 3,610 | |||||||||
Investments in associated companies | 0 | 65 | 10 | |||||||||
Outstanding amounts affiliated companies | 20,000 | 42,000 | 6,778 | |||||||||
Total fixed assets | 126,055 | 122,246 | 19,727 | |||||||||
Long-term assets | 169 | 105 | 17 | |||||||||
Accounts receivable | 951 | 18 | 3 | |||||||||
Outstanding amounts, affiliated companies | 21,351 | 11,977 | 1,933 | |||||||||
Outstanding amounts, portfolio companies | 61,366 | 65,698 | 10,601 | |||||||||
Prepaid expenses and other currents assets | 932 | 810 | 131 | |||||||||
Cash and cash equivalents | 11,016 | 17,206 | 2,776 | |||||||||
Total current assets | 95,616 | 95,709 | 15,444 | |||||||||
Total assets | 221,840 | 218,060 | $ | 35,188 | ||||||||
Liabilities and shareholders’ equity | ||||||||||||
Shareholders’ equity | 215,197 | 195,133 | 31,488 | |||||||||
Restructuring charges | 464 | 493 | 80 | |||||||||
Total provisions | 464 | 493 | 80 | |||||||||
Other liabilities | 0 | 12,031 | 1,941 | |||||||||
Total long-term liabilities | 0 | 12,031 | 1,941 | |||||||||
Accounts payable and accrued liabilities | 6,179 | 10,403 | 1,679 | |||||||||
Total current liabilities | 6,179 | 10,403 | 1,679 | |||||||||
Total liabilities | 6,179 | 22,434 | 3,620 | |||||||||
Total liabilities and shareholders’ equity | 221,840 | 218,060 | $ | 35,188 | ||||||||
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 6.1970 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 — Statement of Equity (Parent Company) and Investments in Portfolio Companies
Statement of Equity | ||||||||||||||||||||
Common | Additional | Retained | ||||||||||||||||||
shares | paid-in capital | earnings | Total | Total | ||||||||||||||||
Convenience | ||||||||||||||||||||
translation | ||||||||||||||||||||
DKK 1,000 | USD 1,000 | |||||||||||||||||||
Balance at January 1, 2004 | 4,339 | 286 | 231,966 | 236,591 | $ | 38,178 | ||||||||||||||
Income brought forward | (286 | ) | 286 | 0 | 0 | |||||||||||||||
Net income (loss) | (21,394 | ) | (21,394 | ) | (3,452 | ) | ||||||||||||||
Balance at January 1, 2005 | 4,339 | 0 | 210,858 | 215,197 | 34,726 | |||||||||||||||
Sold treasury shares | 3,226 | 3,226 | 520 | |||||||||||||||||
Net income (loss) | (23,290 | ) | (23,290 | ) | (3,758 | ) | ||||||||||||||
Balance at September 30, 2005 | 4,339 | 0 | 190,794 | 195,133 | 31,488 | |||||||||||||||
Investments in Portfolio Companies as of September 30, 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 | 10.5 | % | 6,250 | |||||
Scalado AB | 22.4 | % | 18,716 | |||||
Sifira A/S | 57.2 | % | 17,961 | |||||
Tpack A/S | 22.3 | % | 12,505 | |||||
Total investment | 108,883 | |||||||
Valuation adjustments | (28,715 | ) | ||||||
Investments in portfolio companies | 80,168 |
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Attachments — Summary of Income Statement — The Group
Nine months | Three months | |||||||||||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||||||||||
2004 | 2005 | 2005 | 2004 | 2005 | 2005 | |||||||||||||||||||
Convenience | Convenience | |||||||||||||||||||||||
translation | translation | |||||||||||||||||||||||
DKK 1,000 | USD 1,000 | DKK 1,000 | USD 1,000 | |||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||||
Net sales | 20,802 | 14,312 | $ | 2,310 | 7,357 | 3,044 | $ | 491 | ||||||||||||||||
Production costs | 15,678 | 17,650 | 2,848 | 5,982 | 6,443 | 1,040 | ||||||||||||||||||
Valuation adjustments, portfolio companies | (15,000 | ) | (14,000 | ) | (2,259 | ) | (9,000 | ) | 0 | 0 | ||||||||||||||
Gross result | (9,876 | ) | (17,338 | ) | (2,797 | ) | (7,625 | ) | (3,399 | ) | (549 | ) | ||||||||||||
Operating expenses | ||||||||||||||||||||||||
General and administrative | 4,754 | 5,142 | 830 | 1,554 | 2,193 | 354 | ||||||||||||||||||
Sales and distribution | 12,694 | 9,941 | 1,604 | 3,543 | 2,405 | 388 | ||||||||||||||||||
Restructuring charges | (38 | ) | (263 | ) | (43 | ) | 9 | 0 | 0 | |||||||||||||||
Total operating expenses | 17,410 | 14,820 | 2,391 | 5,106 | 4,598 | 742 | ||||||||||||||||||
Income/(loss) from operations before interest and income taxes | (27,286 | ) | (32,158 | ) | (5,188 | ) | (12,731 | ) | (7,997 | ) | (1,291 | ) | ||||||||||||
Interest income and other, net | (113 | ) | (4,738 | ) | (765 | ) | (108 | ) | (1,032 | ) | (167 | ) | ||||||||||||
Income/(loss) before income taxes | (27,399 | ) | (36,896 | ) | (5,953 | ) | (12,839 | ) | (9,029 | ) | (1,458 | ) | ||||||||||||
Income taxes | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Net income/(loss) | (27,399 | ) | (36,896 | ) | $ | (5,953 | ) | (12,839 | ) | (9,029 | ) | $ | (1,458 | ) | ||||||||||
Earnings/(loss) per share, basic | (1.62 | ) | (2.13 | ) | $ | (0.34 | ) | (0.76 | ) | (0.52 | ) | $ | (0.08 | ) | ||||||||||
Earnings/(loss) per share, diluted | (1.62 | ) | (2.13 | ) | $ | (0.34 | ) | (0.76 | ) | (0.52 | ) | $ | (0.08 | ) | ||||||||||
Weighted average shares outstanding including common stock equivalents, basic | 16,938 | 17,288 | 17,288 | 16,938 | 17,357 | 17,357 | ||||||||||||||||||
Weighted average shares outstanding including common stock equivalents, diluted | 16,938 | 17,288 | 17,288 | 16,938 | 17,357 | 17,357 |
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 6.1970 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, | September 30, | September 30, | ||||||||||
2004 | 2005 | 2005 | ||||||||||
Convenience | ||||||||||||
translation | ||||||||||||
DKK 1,000 | USD 1,000 | |||||||||||
Assets | (audited) | (unaudited) | (unaudited) | |||||||||
Intangible fixed assets | 45,042 | 41,824 | $ | 6,749 | ||||||||
Investments, property and equipment, net | 607 | 894 | 144 | |||||||||
Investments in portfolio companies | 83,649 | 57,796 | 9,327 | |||||||||
Total fixed assets | �� | 129,298 | 100,514 | 16,220 | ||||||||
Long-term assets | 169 | 105 | 17 | |||||||||
Inventory | 398 | 56 | 9 | |||||||||
Accounts receivable | 5,984 | 2,451 | 396 | |||||||||
Outstanding amounts, portfolio companies | 61,366 | 65,698 | 10,601 | |||||||||
Prepaid expenses and other currents assets | 1,759 | 1,594 | 257 | |||||||||
Cash and cash equivalents | 11,184 | 17,314 | 2,794 | |||||||||
Total current assets | 80,293 | 87,057 | 14,048 | |||||||||
Total assets | 210,158 | 187,732 | $ | 30,294 | ||||||||
Liabilities and shareholders’ equity | ||||||||||||
Shareholders’ equity | 181,539 | 147,869 | $ | 23,861 | ||||||||
Restructuring charges | 464 | 493 | 80 | |||||||||
Total provisions | 464 | 493 | 80 | |||||||||
Other liabilities | 0 | 12,031 | 1,941 | |||||||||
Total long-term liabilities | 0 | 12,031 | 1,941 | |||||||||
Credit bank | 11,567 | 8,432 | 1,361 | |||||||||
Accounts payable and accrued liabilities | 16,588 | 18,907 | 3,051 | |||||||||
Total current liabilities | 28,155 | 27,339 | 4,412 | |||||||||
Total liabilities | 28,155 | 39,370 | 6,353 | |||||||||
Total liabilities and shareholders’ equity | 210,158 | 187,732 | $ | 30,294 | ||||||||
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 6.1970 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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