Diligent 3Q sales keep climbing, flags quarterly breakeven

Tuesday 11th October 2011 1 Comment

Diligent Board Member Services, the governance software company, says its operation broke even in the third quarter as sales continued to surge in the period.

The company reported net sales revenue of US$4.8 million in the three months ended Sept. 30, more than twice the US$2.2 million revenue in the same period a year earlier, as Diligent added another 170 clients in the quarter and had its best result in customer upgrades.

The company cited its Apple iPad application as a major driver for sales growth. That result has led to an operational break-even in the quarter, the first time Diligent achieved that since it began developing its product in 2000.

“Based on its continued strong sales pipeline, Diligent expects demand to remain strong for the foreseeable future,” the company said in an update.

Diligent reported a net profit of US$822,000 in the six months ended June 30, though that was bolstered by a US$1.2 million debt write-back on a loan from the company’s founders.

Sales were underpinned by increasing demand in the U.S., with annualised licence fees climbing 446% to US$3.4 million in the quarter compared to the same period a year earlier, though Diligent started making inroads into the U.K. and Europe, with fees climbing to US$906,000 from just US$23,000 a year earlier.

Canadian fees more than doubled to US$473,000, and Diligent entered Asia-Pacific with fees of US$208,000. The shares climbed 2.2% to $1.37 in trading today, and have surged 97% this year. Diligent’s stock was the star of the exchange last year, surging 152%.

(BusinessDesk)

BusinessDesk.co.nz

Comments from our readers

On 11 October 2011 at 12:21 pm John Campbell said:

WOW what can you say about this company - can we have more on the NZX please....$2 is a given!