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26 March 2013 — Arkoon Network Security is a major player in IT security solutions, offering communications, data and endpoint protection. The company is listed on Alternext by NYSE- Euronext Paris.

GROUP: SHARP INCREASE IN GROWTH AND PROFITABILITY 

Group figures – In K€ 

2012 2011 Growth

TURNOVER FROM BUSINESSES

13,029

10,842

+19%

EBITDA

2,931

1,458

+101%

EBIT

839

– 646

Ns

NET INCOME

2,117

243

x 8.7

NET PROFITABILITY

16.2%

2.2%

Over the financial year, all ARKOON GROUP activities benefited from its strategic reorientation and good control over structural expenses. The Group’s consolidated turnover thus reflected a 19% increase in growth reaching a figure of €13,029K.
Deferred revenue amounted to €4.1M, confirming the buoyancy of income in 2013.

Fast, SecurityBox and Stormshield activities performed well during 2012 with accelerated growth in the second half of the year. International business stood at €1,004K (direct turnover excluding export sales via operators in France) also showing a breakthrough up by 16%, in North America in particular.

Operating profitability rose to 6.4% of turnover, a very satisfactory level, compared with an operating loss in the previous year: this was achieved despite the negative impact of €451K resulting from R&D depreciation of €1,675K compared with R&D capitalisation of €1,224K. Net profit amounted to €2,117K, including the positive impact of a research tax credit of €735K. Net profitability for the Group reached a record level, representing 16.2% of turnover.

ARKOON : NET PROFITABILITY OF 14%

Arkoon Group figures (excluding SkyRecon) – In K€ 

2012 2011 Growth

TOTAL TURNOVER (including intra-group)

11,452

9,663

+19%

TURNOVER FROM BUSINESSES

10,913

9,048

+21%

EBITDA

2,315

1,255

+84%

EBIT

244

-798

Ns

NET INCOME

1,598

520

x 3,1

Ebitda, up by 84% over 2011, benefited from a sharp increase in the sale of appliances with embedded Fast technology, now one of the top solutions on the market, and SecurityBox activity (encryption of exchanges and sensitive data), the pertinence of which has been confirmed by major national players.
The rise in gross margin in terms of value, prudent operational management and a stable headcount contributed to the high increase in the operating result, now standing at a profit figure of €244K (including the negative impact of €451K for R&D depreciation).

Net after-tax profit rose to €1,598K representing 14% of turnover. This includes a positive financial result of €472K, including €421K for the reversal of Group provisions and a research tax credit of €564K compared with €583K in the previous year.

SKYRECON : NET PROFITABILITY OF 43%

SKYRECON SYSTEMS has confirmed its spectacular recovery with an operating profit representing 25% of turnover. In two years, management has therefore managed to generate very profitable growth for this subsidiary, acquired when in difficulty in late 2009. This performance was notably obtained thanks to strategic repositioning on the sensitive major accounts segment, which is being increasingly subjected to targeted IT attacks, and the implementation of an optimised, open-ended operational structure.

SkyRecon France Scope (not including the US) – In K€ 

2012 2011 Growth

TOTAL TURNOVER (including intra-group)

2,164

2,021

+7%

TURNOVER FROM BUSINESSES

1,877

1,735

+8%

EBITDA

555

203

x 2,7

EBIT

534

152

x 3,5

NET INCOME

935

208

x 4,5

With its turnover for the year up by 7% and the benefit of good pooling of Group structural expense, the operating profit of SKYRECON SYSTEMS has been multiplied by 3.5 with net profit, which includes a €171K research tax credit, reaching a record level of €935K.

The US subsidiary, SKYRECON Inc. obtained a turnover of €239K and an operating profit of €61K. In 2013, after two years of thorough commercial efforts, the company is anticipating a sharp rise in business where the StormShield solution for protection against targeted attacks is arousing growing interest among both private and public players.

SOUND FINANCIAL STRUCTURE 

As of 31 December 2012, the financial structure of ARKOON NETWORK SECURITY was sound, with equity capital of €9,380K, Group cash of €5,777K compared with financial debt of €2,031K (excluding factoring accounts), reduced to €1,530K over the 1st quarter of 2013.

2013 – CONTINUED PROFITABLE GROWTH 

In 2013, the Group will have the benefit of a state and major account environment showing increasing sensitivity to the threat of cyber criminality.

Its recognition as a trusted partner offering complementary solutions puts the ARKOON GROUP in an ideal position to continue its expansion.

This recognition can also be illustrated by the subsidies obtained by the Group to take its innovative development projects to successful completion (Midas, Haka, Orohena) which will ultimately reinforce the technological assets of ARKOON NETWORK SECURITY and SKYRECON SYSTEMS, in a constantly evolving sector of activity.

Backed by its expertise in cyber security, the ARKOON GROUP, while maintaining prudent management in view of the unstable economic climate, is expected to achieve a good performance for the entire 2013 financial year.

Next publication: Turnover for the 1st six months 2013, on 16 July 2013 after trading