Increased results for Data Respons

"We are particularly pleased that our international model for sales of solutions is starting to provide good returns,” says Kenneth Ragnvaldsen, CEO at Data Respons ASA. Data Respons, which delivers embedded solutions, experienced a strong end to last year. Operating revenue for Q4 2004 amounted to NOK 83.9 million. This represents growth of 73 percent compared with the same period last year. The operating result for the quarter increased from NOK 1.7 million in Q4 2003 to NOK 7.5 million in Q4 2004. This resulted in a profit margin of 8.9 percent. Operating revenue for 2004 as a whole, increased from 34.1 percent to NOK 240.4 million. Profit before taxes ended up at NOK 12.2 million, versus a deficit of NOK 5 million in 2003. “We are very satisfied with the figures and especially satisfied with the fact that the growth is being achieved as a result of an increase in sales of solutions in Sweden, Norway and Denmark. This is what we call ‘recurring business’, which means that our solutions are integrated into the customers’s products and will potentially generate revenue for a long time ahead. The fact that we are doing so well outside Norway confirms that Data Respons has an international business model,” continues Ragnvaldsen. For the first time operating revenue in Denmark was higher than in Norway. In Denmark operating revenue grew by 126 percent compared with Q4 2003 to NOK 37.3 million. More customers in this market are increasing investments in new products. In Norway Data Respons achieved operating revenue of NOK 36.3 million in Q4 2004, which represents growth of 51 percent. In the Swedish market Data Respons achieved a positive operating result of NOK 1 million in Q4 2004 from revenue of NOK 8.9 million. A subsidiary was established in Germany during the previous quarter. Germany is the largest market for embedded computing solutions in Europe, with a market share of approx. 40%. The new subsidiary is part of the company’s strategy to achieve its vision of becoming the leading embedded solutions company in Europe. “In 2005 we are going to focus even more on sales and marketing targeted at larger solution customers. This is how we will create further profitability with the business model. We are also going to work hard to ensure the new subsidiary in Germany is a success. Based on this we expect our profitable growth to continue,” concludes Ragnvaldsen.