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

 


Diligent, with cash pile, mulls growth options, acquisitions

Diligent, sitting on cash, mulls growth options, acquisitions

By Paul McBeth

March 3 (BusinessDesk) - Diligent Board Member Services, which last week restated its financial statements, is mulling options for growth, including acquisitions, as the first port of call for the pile of cash it’s sitting on.

Chief executive Alex Sodi told analysts the first option to use its US$56 million in cash and equivalents would be to grow the business before considering any redistribution to investors.

“We’re a software-as-a-service company – the key is growth when we look at use of cash,” Sodi said. “Can we use it better to grow? I would say that’s what we are going to focus on first.”

When asked whether Diligent was contemplating any acquisitions, Sodi said it’s something the company is looking at in how it uses its funds. He didn’t give details.

Diligent’s board has been mulling ways to use the steadily increasing cash position since 2012, though last year’s accounting woes which forced a restatement of the firm’s revenue figures put that on the backburner.

The company re-filed its accounts on Friday after incorrectly recognising revenue too early under US GAAP accounting rules. The effect of the restatements reduced previously reported revenue by US$4.6 million in the year ended Dec. 31, 2012. Diligent is still reviewing internal controls and will provide greater detail and an updated assessment in its annual report.

The shares rose 2.5 percent to $4.97, and have surged 28 percent this year after investors punished the stock in 2013 over its accounting errors.

Sodi said the company is contemplating a US listing, though no decision has been made.

The company grew in all markets last year, with a faster pace of expansion in Australasia and Europe than in North America, which represents about three-quarters of the firm’s revenue.

Diligent has been looking at ways to expand its offer and expects to make an announcement on a new product in the “next two months or so,” he said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Taxing Multinationals: EU Ruling Sours Apple

Shares of Apple slid, down 0.9 percent as of 3.08pm in New York, after the European Commission ruled that Ireland granted the company undue tax benefits of up to 13 billion euros (US$14.5 billion)—"illegal aid” under EU rules that the commission says Ireland now must recover from Apple. More>>

ALSO:

NZX Review: Best Practice Code Recommends Code Of Ethics

NZX, the sharemarket operator, is seeking feedback on proposed changes to its corporate governance best practice code including a published code of ethics, rules about share trading and continuous disclosure, and more transparency over board appointments and chief executive pay. More>>

ALSO:

Auditors:

Signs Of Life? SETI On Russian Space(?) Signal

A star system 94 light-years away is in the spotlight as a possible candidate for intelligent inhabitants, thanks to the discovery of a radio signal by a group of Russian astronomers... Could it be a transmission from a technically proficient society? At this point, we can only consider what is known so far. More>>

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news