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

 


SLI System reports smaller FY loss, more cash than forecast

SLI System reports smaller annual loss, more cash than forecast

By Suze Metherell

Aug. 26 (BusinessDesk) - SLI Systems, the search engine software developer which debuted on the NZX last year, posted a smaller than forecast loss while keeping more cash on hand.

The Christchurch-based company reported a loss of $5.7 million in the 12 months ended June 30, below the $7.2 million loss forecast in its offer documents in May last year, it said in a statement. Operating revenue was $22.1 million, about matching its forecast for $22.2 million, while cash reserves were $11.4 million, versus the $7.3 million flagged in its prospectus.

Annualised recurring revenue, SLI's preferred financial measure, rose about 29 percent to $24.9 million, missing its forecast of $25.9 million, but in line with its profit warning in July. SLI had 511 customers at June 30, compared to the 581 it had forecast in its prospectus, but said the initial deal size for new customers was 20 percent larger than forecast.

SLI is forgoing profit and reinvesting earnings to fund its growth plans, as it hopes to capitalise on the growing e-commerce market, particularly in the US, and says its software as a service is the second biggest after Oracle providing online retailers with suggestive search engines.

"SLI can look back on its first year as a publicly listed company with some satisfaction," said chief executive Shaun Ryan. "We enjoy a vast untapped market and product awareness that is in its infancy. Recent research out of the US indicated there are well more than 100,000 legitimate e-commerce sites in the world, and only a small portion of these have any kind of premium site search software or service in place."

The company raised $27 million in last year's IPO, of which $15 million was new capital to be invested in the business.

Shares of the company last traded at $1.40, and have declined some 36 percent over the past 12 months.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:


Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news