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

 

SLI Systems expects new San Jose-based CEO to lift revenue

SLI Systems expects new San Jose-based CEO to lift revenue growth in largest market

By Jonathan Underhill

Sept. 30 (BusinessDesk) - SLI Systems, the online retail search engine developer, says it expects the appointment of a Silicon Valley veteran as chief executive will drive revenue growth in the world's largest e-commerce market where it has lagged behind other regions.

Christchurch-based SLI today named Chris Brennan as CEO, starting the San Jose office on Oct. 9, while founding chief executive Shaun Ryan, who steered the company through its 2013 share sale and listing, will move into a role as chief innovation officer.

North America accounted for 56 percent of SLI's annualised recurring revenue (ARR) as at June 30 but ARR growth in that market was just 12 percent in constant currency terms, lagging behind growth of 34 percent for the Asia Pacific region and 25 percent for the UK. The company had 51 full-time equivalent workers (FTEs) in North America at June 30, accounting for 29 percent of its workforce, compared with 91 FTEs, or 52 percent, in New Zealand.

"The growth rates we have seen in ARR - we're looking for a considerable improvement on that," chairman Greg Cross told BusinessDesk. "The US is by far and away the largest e-commerce market in the world and a very large growth opportunity for us. Bringing in a very seasoned, very experienced American-based CEO will enable us to get growth back to where we need it to be."

He declined to give a target for ARR growth and wouldn't comment on whether the company would hire more workers in the US pending the assessment of Brennan and his team.

SLI's loss widened to $7.1 million in the year ended June 30, from $5.7 million a year earlier, while operating revenue rose 27 percent to $28 million, in line with guidance. At balance date the company had $5.6 million of funds on hand and it said it was on track to be cash-flow breakeven in the near term and won’t require further investment.

"Our strategy puts us clearly on a path where we will not need to raise more capital," Cross said.

The company's shares last traded at 83 cents, compared with the sale price in its 2013 IPO of $1.50 a share. The stock peaked at $2.90 in January 2014.

Ryan, who held 11.35 percent of the company's stock as at June 30, said last month that the shares were "significantly under-priced" compared to other software-as-a-service companies, which were valued at upwards of four times annualised recurring revenue. With ARR of $34.6 million, that suggested a market value of at least $138 million for SLI, he said on Aug. 25. At today's price the market value is about $51 million.

Asked if SLI needed to do more to sell its message to investors, Cross said the company did its best to telegraph its story to the market "but ultimately the market and investors set the price."

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

RNZ: Porirua Most Expensive Region To Rent, According To Trade Me

A rental website shows this town is now New Zealand's most expensive region to rent a house, ahead of Wellington and Auckland cities. More>>

ALSO:


Stats NZ: Nearly 1,000 More Big Businesses Now Than Two Decades Ago – Media Release

There are now 2,690 big businesses in New Zealand employing more than 100 staff – nearly 1,000 or 58 percent more than 20 years ago, Stats NZ said today. Over the 20 years to February 2020, the total number of enterprises in New Zealand increased ... More>>

ALSO:

RNZ: Housing Boom Could Get Worse, Economist Warns

Economists are calling on the Reserve Bank to reinstate lending restrictions, warning the housing market is spiralling out of control. More>>

ALSO:

Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>

ALSO:

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:


CERT NZ: Malicious Computer Virus Targeting New Zealanders

CERT NZ, the government agency which supports organisations and individuals affected by cyber security incidents, says a recent surge of increasingly sophisticated malware attacks is affecting everyday New Zealanders as well as large organisations. The ... More>>

ALSO:

Economy: NZ Small Business Recovery Continues In September

Xero, the global small business platform, today released its Small Business Insights (XSBI) for September revealing an uptick in small business jobs and year-on-year revenue growth in New Zealand. Nationwide, the average number of jobs in the small ... More>>

ALSO:


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>