Scoop has an Ethical Paywall
License needed for work use Register

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


Diligent's soaring sales drive 2Q profit of US$1.46M

Diligent's soaring sales drive 2Q profit of US$1.46M

Aug. 15 (BusinessDesk) - Software company Diligent Board Member Services' spectacular sales growth is making it increasingly profitable.

Diligent posted a US$1.46 million net profit for the three months ended June 30 compared with its year-earlier second quarter's US$1 million profit which was boosted by a US$1.2 million write-back of a share price-related debt.

At the operating level, second-quarter profit of US$2.16 million compared with a US$250,000 million loss in the same period a year earlier, the company said in a statement.

Net profit for the six months ended June 30 was US$3.36 million, up from US$820,000 in the previous first half.

“The company's dramatic growth in sales and revenues in the first half of 2012 is a reflection of the accelerating global market demand for the Diligent Boardbooks product,” said chairman David Liptak.

As previously reported, Diligent's second-quarter sales nearly tripled to US$10.1 million compared with US$3.7 million in the same quarter last year.

That took first-half sales to US$18.3 million, up from US$6.6 million last year.

The software-as-a-service (Saas) company was also generated US$9.18 million in operating cash flow in the six months, taking cash at June 30 to US$17.16 million.

Liptak said the strong cash flow was “evidence of management's focus on cost control.”

Diligent's operating margins continued to improve through the first half, “which is a clear indication that the company is generating new revenues efficiently,” he said.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

“Looking ahead, Diligent remains well positioned to continue to further expand its business operations as we believe that, increasingly, more companies throughout the world recognize the value of the Boardbooks product.”

As the company grows, it will also work to improve operating efficiencies and increase profitability, Liptak said.

Diligent shares closed yesterday at $3.83, down from their record $4.03 after the second quarter sales announcement. That's a long way from the year low at $1.02 and as low as 7 cents in March 2009 when the company's future looked doubtful.


© Scoop Media

Advertisement - scroll to continue reading
Business Headlines | Sci-Tech Headlines

FMA: MAS To Pay $2.1M Penalty For Making False Representations

Following proceedings brought by the FMA, MAS has been ordered to pay a $2.1M penalty for making false and/or misleading representations to some customers. MAS admitted failing to correctly apply multi-policy discounts and no claims bonus discounts to some customers, failing to correctly apply inflation adjustments on some customer policies, and miscalculating benefit payments.More

IAG: Call On New Government To Prioritise Flood Resilience

The economic toll of our summer of storms continues to mount, with insurance payouts now topping $1B, second only to the Christchurch earthquakes. AMI, State, & NZI have released the latest Wild Weather Tracker, which reveals 51,000 claims for the North Island floods & Cyclone Gabrielle, of which 99% (motor), 97% (contents), and 93% (home) of claims have now been settled. More


Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.