Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Diligent sales growth slows in 4Q, eyes Europe expansion

Diligent sales growth slows in fourth quarter, accelerates European expansion

By Paul McBeth

Jan. 14 (BusinessDesk) - Diligent Board Member Services, the governance software developer, said sales growth slowed in the last three months of 2013, and it has decided to speed up its expansion plans in Europe.

The New York-based company added 145 net new clients in the three months ended Dec. 31, compared to 193 a year earlier. It lifted its cash balance US$8.7 million to US$56.1 million in the quarter, for an annual increase of US$22.8 million. As at Dec. 31 it had 2450 companies and 3,405 boards as clients, with a customer retention rate of 97 percent.

The company released a truncated quarterly update as it continues to work on restating its books for the past three financial years after a series of administrative failings led to the firm recognising revenue too early.

Diligent plans to accelerate its plans to expand more widely across Europe, with operations and a data centre in Germany, which it estimates will cost US$2 million.

“We have had good success in the UK so far, and we believe that there is a large opportunity for us in the continental European countries,” chief executive Alex Sodi said in a statement. “Having operations and a data centre in Europe should allow us to establish a leadership position more quickly.”

The company said it is still working towards providing its restated accounts by Feb. 28, which it has to meet if it wants to avoid having trading in its NZX-listed shares suspended by the stock market operator.

Diligent incurred costs of US$5.1 million relating to the restatement and re-audit of its statements, of which US$3.3million was paid in 2013.

The shares fell 3.9 percent to $4.38 yesterday, and are down 21 percent over the past 12 months.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Court Ruling: Kiwifruit NZ Ordered To Consider Collaborative Marketing Proposals

The High Court has told kiwifruit marketer Zespri to reconsider collaborative marketing proposals from Splice Fruit and Seeka Kiwifruit to sell fruit offshore that its board had previously rejected. More>>

ALSO:

Electric Vehicles: No Road User Charges Feature In Govt Package

Drivers of electric vehicles won't have to pay road user charges and will be allowed to drive in bus lanes as part of a new government plan to double EV numbers annually to a target 64,000 by 2021. More>>

ALSO:

Pre-Budget: Computer Emergency Response Team, Assemble!

John Key told the country's first ever Cyber Security Summit in Auckland that the government had earmarked funding set up a national Computer Emergency Response Team to help prevent and act on cyber incidents in partnership with the private sector and other organisations. More>>

ALSO:

Job Cutter Goes: Mark Weldon To Step Down As MediaWorks CEO

“When I joined MediaWorks in August 2014, I had a mandate to lead a significant change programme to bring the business back from receivership into a position where it could once again be a strong competitor in the market, with a sound and sustainable future. It was a big brief, laden with inherent challenges, but I took it in good faith and have dedicated myself fully to the goal since." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news