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

 

SLI Systems posts smaller FY loss than prospectus forecast

SLI Systems posts smaller FY loss than prospectus forecast, improves customer retention rate

By Paul McBeth

Aug. 28 (BusinessDesk) - SLI Systems, the search engine software developer, posted a slightly smaller annual loss than forecast in its May offer document as it sees signs of life in new Japanese and Brazilian markets, and kept more customers on its books than expected.

The Christchurch-based company made a net loss of $2.01 million in the 12 months ended June 30, smaller than the forecast $2.15 million in its prospectus, it said in a statement. SLI Systems raised $27 million in a public offer and from existing investors when it listed in May. Annual earnings before interest, tax, depreciation and amortisation of $1.77 million was smaller than the forecast $1.86 million.

Revenue was in line with expectations at $18.31 million, and the software-as-a-service firm had a customer retention rate of 92 percent, ahead of its five-year average of 90 percent. Annualised recurring revenue, a favoured measure of sales for software-as-a-service firms, was $19.26 million, in line with forecasts.

The software firm affirmed expectations of short-term losses in the hope of grabbing global market share, but didn’t offer any firmer guidance.

“There are significant market opportunities in our space and we believe we have the right team to deliver on these,” chief executive Shaun Ryan said. “The additional capital raised means we now have the resources to expand more quickly in our new markets.”

The shares gained 1.4 percent to $2.22, adding to yesterday’s 4.8 percent. The stock has climbed 48 percent from its offer price of $1.50 apiece in the May offer.

SLI Systems had a slower operational cash-burn of $1.21 million in the year from a forecast $1.43 million outflow, and held $15.38 million in cash and equivalents as at June 30, some $316,000 more than expected from cheaper float costs.

The company is looking to derive more revenue from countries outside the US, UK and Australasia, and was encouraged with its growth in Brazil and had signed up its first customer in Japan, Ryan said.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 



The Download Weekly: Vodafone FibreX back in court

Vodafone and the Commerce Commission head back to court over FibreX in a week the TCF issues broadband marketing codes that should avoid similar problems in the future... More>>


NIWA: Tonga Eruption Discoveries Defy Expectations
New findings from the record-breaking Tongan volcanic eruption are “surprising and unexpected”, say scientists from New Zealand’s National Institute for Water and Atmospheric Research (NIWA)... More>>


Commerce Commission: Appeals Record $2.25m Fine In Vodafone FibreX Case

The Commerce Commission has filed an appeal in the High Court against a record $2.25 million fine imposed on Vodafone NZ Limited (Vodafone) for its offending under the Fair Trading Act during its FibreX advertising campaign. While the sentence imposed in the Auckland District Court on April 14 was the largest-ever fine under the Fair Trading Act, the Commission will argue that it is manifestly inadequate... More>>

Stats: Quiet Start For Retail In 2022
The volume of retail sales was relatively unchanged in the March 2022 quarter, following a strong increase in the December 2021 quarter, Stats NZ said today... More>>



Finder: RBNZ Survey: 64% Of Experts Say Rising Inflation Will Push More Kiwis Into Debt

Soaring inflation and cost of living pressures will see many households pushed to the financial limit, according to experts... More>>



Barfoot & Thompson: Rents Up By Around 3% In Most Areas

The average weekly rent paid for homes in most areas of Auckland has risen by around 3 percent year-on-year. The figures for end March from more than 16,000 properties... More>>