Diligent passes significant milestones

Wednesday 19th January 2011

Software company Diligent Board Member Services passed significant milestones in the December quarter, saying the results underscored its position as the market leader in web-based portals for board materials.

The company offers licences for a web-based portal that enables board materials to be updated and examined before and during board meetings.

In the December quarter it passed for the first time both the $US1 million ($NZ1.3m) mark in new annualised licence income for a quarter and $US10 million in cumulative annualised licence fees.

Diligent reported net sales revenue rose 59% in the three months to the end of December to $US2.45 million, compared to a year earlier.

Annualised licence fees rose $US1.56 million in the quarter, compared to an increase of $US750,000 a year earlier, while total annualised licence fees were $US10.02 million at the end of the fourth quarter of 2010, compared to $US6.32 million a year earlier.

A net 59 new licences were added during the three months to December, compared to 41 for the fourth quarter of 2009, Diligent said today.

The 2010 revenue growth was achieved by a sales force, whose ratio of sales revenue sold per sales person for the calendar 2010 year was among the highest in the Software-as-a-Service industry worldwide.

The introduction of an Apple iPad compatible version of Diligent Boardbooks last September and the acceptance of Boardbooks for iPad 1.0 into the Apple App Store this month had created unprecedented demand for the Diligent Boardbooks product, Diligent said.

It expected the sales momentum to continue based on its forward order book and inquiry levels, and boosted by the recent opening of a Diligent subsidiary in Singapore to service what is expected to be a burgeoning Asian market.

Diligent shares were up 13c, or 19.4%, to 80c towards the end of the first hour of trading on the sharemarket.

NZPA

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