Oslo, Tuesday, December 21, 2010
Stock Exchange Notification
RESULTS UPDATE FOR 4TH QUARTER 2010
Fourth quarter has been marked by a continuing weak economy in a number of countries where Blom operates.
In our stock exchange notification dated 22nd October 2010 it was informed that Pictometry Inc. has terminated their license agreement with Blom with immediate effect. Blom consider this an unlawful breach, and has accordingly initiated all steps required to protect its position. However, the termination has resulted in loss of revenue for the company that will impact the result for the 4th Quarter 2010. In addition, Blom acknowledges that the uncertainty created around the license agreement with Pictometry, may have impact on other contractual obligations Blom has towards other customers and partners, which may have negative consequences beyond the loss of revenues experienced so far in the fourth quarter.
As a consequence of the above the company may have challenges to meet the covenants in its bond loan.
For further information please contact CEO Dirk Blaauw tel. (+47) 22 13 19 20 or CFO Lars Bakklund tel. (+47) 22 13 19 34.