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Diligent reaches break-even in third quarter

Tuesday 12th October 2010

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Start-up software company Diligent Board Member Services says it achieved its goal of breaking even at the cash flow level in the September quarter.

Diligent's third quarter sales rose 68% to $US2.2 million, taking its sales for the nine months ended September 30 to US$5.9 million, up 69% on the same nine months last year. Annualised licence fees, locked-in recurring revenues, stood at US$8.5 million at September 30 compared with US$5.6 million a year earlier.

 “This is a significant milestone for the company and its investors and is a result of our continued strong sales performance,” Diligent said in a statement.

Strong sales growth “reflects the increasing acceptance of Diligent's market-leading Boardbooks product and also management's commitment to increasing efficiencies and productivity throughout the organisation,” it said.

The company said the US$860,000 of new annualised license fee income achieved in the September quarter is a record. It added 41 new licenses in the quarter compared with 30 in the third quarter last year and said it has “a strong sales pipeline as we enter the fourth quarter”.

At September 30, Diligent had 397 clients worldwide with more than 10,400 individual users of its Boardbooks software with AOL and ExxonMobil among the customers who signed up in the third quarter.

Diligent said upgrades from existing customers contributed a record US$170,000 to third quarter revenue.

Diligent's shares, floated at $1 in late 2007, fell 1 cent to 64 cents yesterday, having risen from as low as 7 cents in March last year.

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