Utimaco Safeware Focuses on Profitable LOBs with Strong Growth
Self funded Future Growth Separation From Loss-making LOBs
Oberursel, 30th January 2002 – Utimaco Safeware, the IT security
specialist, took the decision to focus its resources on the LOBs
(lines of business) with the highest revenues and giving the best
prospect for success. These are Personal Device Security (PDS),
Digital Transaction Security (DTS) and the System House, which
provides customer-specific security solutions. PDS and the System
House are already profitable and DTS is expected to achieve
profitability shortly.
The two loss-making LOBs, Network Security and Security Modules, will
be shut down. The System House will take over the support and
maintenance of our customers for these LOBS and will take over
CryptoServer 2000 product and the network technologies as part of
customer projects.
Utimaco Safeware’s refocussing makes it possible for the company to
return to sustainable profitability, in the short term, and to
internally finance future growth.
As part of this focussed strategy, the number of employees will be
reduced by 20 % to 260. The extraordinary costs associated with this
action of approximately Euro 3.8 million will be accounted for in the
half-yearly balance sheet of 31st December 2001. Finance will be
provided by the financial package implemented in December 2001.
“Focussing our activities will enable us to expand our good market
position significantly in the areas of Personal Device Security and
Digital Transaction Security”, stated Bram van der Wal, Board Member
of Utimaco Safeware. “In these areas we provide an outstanding range
of technologies, products and references and foresee an enormous
potential market for ourselves. According to expert estimates only
around 3% of all laptops in companies currently use encryption. There
is also a huge demand for security solutions for small mobile devices
such as PDAs and smartphones. The same applies for E-mail Security
and Digital Signature, which are essential for eGovernment and B2B
business processes.”
“I am convinced that this refocussing accurately reflects the changed
market situation and means that the company is in an excellent
position to meet the demands of the future”, said Horst G?¶rtz,
company founder and director of the Horst G?¶rtz foundation, which,
with 24.5 %, is the largest individual shareholder in Utimaco
Safeware.
The company’s strategic reorganisation is being assisted by
consultancy from BlueChipBusiness Labs, Bad Homburg, Germany.
BlueChipBusiness Labs was founded by Konrad F. Reiss former CEO of
debis Systemhaus.
Utimaco Safeware AG is one of the major European technological
manufacturers of professional IT security solutions. The security
technology and solutions developed by Utimaco Safeware protect the
electronic data of companies and government bodies against
unauthorised access and guarantees that business processes and
administrative procedures in the electronic world are binding and
confidential.