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News & EventsnCipher plc full year results 2007
March 18, 2008
nCipher plc (LSE: NCH), a global leader in protecting critical enterprise data, announces its unaudited preliminary financial results for the full year ended 31 December 2007.
Financial highlights for the full year ended 31 December 2007 (IFRS)
• Revenues up 15% to £24.2m (2006: £21.1m)
o 20% growth at constant currency
• Operating profit increased more than three-fold to £2.2m (2006: £0.5m excluding impairment loss)
• Profit before tax significantly improved to £3.4m (2006: loss of £4.7m)
• Earnings per share rose to 11.4p (2006: loss of 15.3p)
• Successful return of £34 million cash to shareholders by Tender Offer
Corporate News
• Key appointments include:
o Geoffrey Finlay as CEO
o George Ralph as CFO
o Ira Zalesin as COO / Americas and Group CMO (Chief Marketing Officer)
Market and Operational News
• Results of CEO review
o Expansion of market opportunity identified for nCipher ‘s expertise and technologies
o Target set for nCipher to double sales over next 3 years
o Calendar 2008 profit to be invested in significant strengthening of infrastructure, marketing, sales and product delivery
o Change of financial reporting date to April to improve competitive alignment
• Acquisition of NeoScale assets strengthens position in the encryption based data storage security market
Commenting on the results Geoffrey Finlay, Chief Executive Officer, said:
“We are pleased to report another year of growth for nCipher. These results, with sales and profits both up significantly, are a testament to the quality of our technology and our people, and are further proof of the benefits of our strategic commitment to invest in maintaining our technological lead.
“We now consider that the global commercial opportunity directly related to the Group’s expertise and technologies is both more substantial and growing more rapidly than has previously been predicted. We have, therefore, set ourselves the target to double sales over the next three years and are making significant additional investment this year to improve all aspects of our business. We will invest only in the right mix of products and services - those with the highest potential return on investment - and will have the sales and marketing structure and skills in place to maximise sales. Profits in calendar 2008 will be substantially reduced by the investment needed to ensure a strong foundation for scaleable future growth of both sales and profits.”
Robert Jeens, Chairman, said:
“The Board welcomes the important changes initiated by Geoffrey following his review of the business. Under his experienced leadership, we believe that the prospects for the core business of the Group in high-end encryption hardware remain strong and continue to provide a solid foundation for future growth. The acquisition of the NeoScale product line strengthens our position in the rapidly evolving encryption based storage security market. This, together with our emerging position in enterprise key management as well as our now successfully established Professional Services team, is expected to deliver solid growth during 2008 and provide a stable platform for achieving our longer term aims.”
A presentation for analysts will be held at 9.30am today, Tuesday 18 March 2008, at the offices of Financial Dynamics, 26 Southampton Buildings, London WC2A 1PB
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nCipher protects critical enterprise data for many of the world's most security-conscious organizations
by being an industry leader in cryptography and data security, data encryption, enterprise pki,
digital signature software, timestamp, and other data protection solutions.
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