2008-05-07
Restructuring Process on Track – Torbjörn Sandberg Appointed CEO
(Oslo, May 7th, 2008) Birdstep Technology ASA reported first quarter 2008 revenues of NOK 20.8 million, following the implementation of the first step of the restructuring program, which is progressing on track. Torbjörn Sandberg is appointed CEO of Birdstep Technology from May 16th.
− During the first quarter, Birdstep implemented the first step of the restructuring program, aiming at focusing and optimizing the company’s resources towards the fast growing USB modem market. The process is progressing as scheduled, with the cost reductions effective from the third quarter, says Terje Christoffersen, interim CEO of Birdstep Technology.
Birdstep Technology’s first quarter 2008 consolidated revenues was NOK 20.8 million, compared to NOK 12.8 million in the corresponding quarter 2007. Restructuring costs, which where estimated to NOK 6-8 million at the fourth quarter presentation, ended at NOK 4.3 million. Consolidated EBITA, excluding restructuring and stock option costs was NOK (11.9) million, while cash flow ended at NOK (6.6) million. Cash and cash equivalents at the end of the quarter were NOK 106.8 million for the group.
From the first quarter of 2008, Birdstep Technology is reporting the revenue development for its four business segments: EasyConnect had revenues of NOK 5.4 million (pro-forma - 41.7 %), Secgo Software NOK 3.6 million (pro-forma + 10.1 %), ServiceFactory NOK 7.8 million (pro-forma + 48.5 %) and Birdstep Database NOK 4.0 million (pro-forma + 15.2 %)
- The restructuring has a short term negative revenue effect, following the decline in the traditional PC card market. In addition, the strategy of increasing the company’s recurring revenues, including terminating customer development projects and reducing the company’s consultancy offering, leads to a temporary loss of revenues. However, Birdstep Technology today announced two new EasyConnect Go agreements with 3UK and Elisa Finland, proving the technology and market potential, says Christoffersen.
The Board of Directors in Birdstep Technology has appointed Torbjörn Sandberg as CEO of the company, effective from May 16th. Sandberg comes from the position as Business Unit Manager of Birdstep Technology’s subsidiary ServiceFactory. Sandberg has vast telecom experience and holds a M.Sc. degree in Industrial Management & Engineering from the Linköping Institute of Technology.
− As announced November 16th and January 2nd, Terje Christoffersen will act as interim CEO until the General Assembly May 15th. We are pleased to announce Torbjörn Sandberg as the new CEO of Birdstep Technology, leading the implementation of the restructuring towards becoming a software vendor. At the same time, we welcome the nomination committee’s recommendation of electing Christoffersen as a new member of the board. To ensure continuity, the board has also asked Christoffersen to serve as a part time consultant in a transition period, says Terje Thon, Chairman of Birdstep Technology.
For further information, please contact:
Terje Christoffersen, CEO of Birdstep Technology ASA, phone +47 92 82 95 00