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

 


Diligent shares jump as 1st-qtr figures show better growth

Diligent shares jump as first-quarter figures show growth slowing less than feared

By Suze Metherell

April 16 (BusinessDesk) – Diligent Board Member Services stock rose as much as 12 percent after the governance app developer posted quarterly figures showing sales growth hasn’t slowed as much as some investors had expected.

The New York-based, New Zealand-listed company added a net 113 new client agreements in the three months ended March 31, taking its total number of customers to 2,563. That’s up 28 percent from the same quarter of 2013, when it added 201 customers.

Diligent shares rose 9.4 percent to $4.43 and earlier touched $4.55 after the figures were released. The stock sank in the second half of 2013 as sales missed targets and the company was distracted by administrative errors that forced it to restate revenue for the 2010 through 2013 financial years. It had previously been forced to revise executive options that exceeded company guidelines.

“They’re back to reasonable news, versus the flood of bad news over the last while, this is going back towards more business as usual,” said James Lindsay, who holds Diligent among $450 million of equities he helps manage at Tyndall Investment Management.

“Although new additions were a lower number, it probably wasn’t as low as some people had thought,” Lindsay said. “At some stage it will reach maturity or saturation point in the US market - that hasn’t transpired immediately.”

The share’s 15 percent gain this year is twice the pace of the NZX 50 Index. The company is rated an average of ‘buy’ according to four analysts surveyed by Reuters, with a median price target of $4.72.

Diligent said it incurred costs of about US$5.1 million for the restatement and re-auditing of its accounts, including US$1.8 million incurred in the latest three months. It also spent US$1.6 million of the estimated US$2.3 million earmarked for building a European data centre, the company said today.

Lindsay said Diligent hasn’t reached the same level of saturation in Europe as in its US market.

Diligent is among New Zealand tech stocks caught up in a global sell off over the past month as investors questioned the ability of companies to deliver the profits implied in their high valuations. Big movements in the tech-heavy Nasdaq Composite Index on Wall Street have flowed through to the local stock market.

Still, Diligent’s selloff has “mostly been related to its own woes rather than that of the market,” Lindsay said.

Xero, the cloud-based accounting software, slipped 0.7 percent to $28.25. Pacific Edge, the Dunedin-based biotech company, was up 5.6 percent to $1.13 while outside the benchmark index security software firm Wynyard Group has risen 4.3 percent to $2.43.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Balance Of Trade: NZ Posts Trade Deficit In October On Falling Dairy Exports

New Zealand’s posted its largest monthly trade deficit for October in six years, while narrowing the shortfall from September, led by a fall in dairy exports to China while all main imports into the country rose. More>>

ALSO:

Gigatown Winner: Plenty Of Positives For Dunedin

Although the city has taken the Gigatown title, along with new ultrafast 1Gbps broadband and funding for $700,000 worth of UFB-related initiatives across the community, Mr Cull says Dunedin has gained so much more through its involvement. More>>

ALSO:

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news