SLI Systems says FY sales miss forecast on ARR basis, to report smaller loss
By Jonathan Underhill
July 28 (BusinessDesk) - SLI Systems, the search engine software developer, said full-year revenue missed its prospectus forecast, using its preferred measure, although it will report a smaller loss because of delays in building a sales team.
Annualised recurring revenue rose about 25 percent to $25 million in the 12 months ended June 30, compared to a forecast in last year's offer documents of $25.9 million. Operating revenue was $22 million, about matching its forecast for $22.2 million, the company said in a statement.
Shares of SLI sank to a record low of $1.30 on Friday, valuing the company at $78.6 million, after selling for $1.50 apiece in last year's initial public offering. The stock has retreated from as high as $2.90 in late January. The company, which is scheduled to report its audited results on Aug. 26, said its loss was smaller than forecast after it deferred spending to hire sales and marketing staff.
SLI Systems had forecast a comprehensive loss of about $7.2 million for the latest year,or a loss of $6.87 million on an earnings before interest, tax, depreciation and amortisation basis.
"We continue to prudently manage the capital we raised last year," chief executive Shaun Ryan said in the statement. "Our cash position and operating loss are favourable to our forecast, due to a deferral of planned expenditure on marketing and sales headcount hires."
The company raised $27 million in last year's IPO, of which $15 million was new capital to be invested in the business. SLI Systems had 510 customers at June 30, compared to the 580 it had forecast in its prospectus.
"Revenue has benefited from the good progress we have made recruiting large e-commerce sites, which take longer to engage but generate higher average monthly revenue and provide an outstanding opportunity to showcase SLI's capabilities to a greater number of this type of customer," Ryan said.