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)