Daily ShareChat: Diligent Board Member Services'
By Jenny Ruth
Start-up software company Diligent Board Member Services' fourth quarter sales result was very strong with 59 net additional licenses added compared with her expectation of 47, says Gina Meo, an analyst at First NZ Capital.
Record additional net annualised license fees (ALF) of US$1.6 million (NZ$2.1 million) in the quarter was 108% ahead of the same quarter in 2009 and well above here US$1.2 million forecast.
"This boost in ALF was driven not only by licenses being added at a rate quicker than expected but also from strong upgrades from existing licenses - that is, increasing the number of users per license - which created 18% of the net add to ALF," Meo says.
While fourth quarter revenue was up 50% to US$2.5 million, ALF "is a more useful measure to focus on in regards to cashflow."
The announcement by 25% shareholder Spring Street Partners that it has waived US$200,000 of the preferred share dividend owed it is "positive for first quarter cashflow but also highlights the continued strong support of Spring Street Partners," Meo says.
"With such a strong sales result reconfirming our investment thesis on the stock, we remain positive on Diligent's prospects," she says. Meo says she will look at upgrading her sales growth assumptions.
(Meo doesn't give a recommendation)
Daily ShareChat articles report how the main experts in the market might view a certain share and we provide this commentary as a useful resource for investors. Content on this site does not in any way constitute a recommendation to buy, hold or sell any particular share. Investors should always seek professional advice before making any investment decisions.
Comments from our readers
Add your comment:
Diligent sees growing importance in European sales
Diligent boosts 1Q sales 84 percent amid strong growth outside US
Diligent directors come up with new CEO incentive scheme
Diligent to put new director, auditor to shareholders at June annual meeting
Diligent may breach listing rules for using US auditor
Diligent to hire new CFO, general counsel after compliance missteps
Diligent shrugs shoulders over share price spike, hefty trading volume
Diligent promises more diligence after options error; FY profit almost triples
Diligent mulls report on executive options, seeks extension of trading halt
Diligent halted pending report on executive options, may have to restate accounts