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Diligent posts 66% jump in second-quarter sales

Tuesday 13th July 2010

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Diligent Board Member Services said second-quarter sales jumped 66% to US$1.92 million in what is traditionally a slow quarter.

That took annualised licence fees - locked-in recurring revenues - to US$7.55 million compared with US$4.89 million at the end of the second quarter last year.

Diligent said the sales increase was achieved without increasing employees, reflecting greater staff skills, the company's growing reputation and increasing client referrals. Sales in Britain and Canada, outside its core US market, grew significantly at relatively modest expense, it said in a statement.

An increasingly diverse mix of industry groups are signing up for its Boardbooks board portal, which allows company directors to manage the requirements of their board functions. As well, existing users are upgrading their services. The company says it remains on track to deliver on its promise of breaking even at the cash flow level in the third quarter.

The sales report didn't include Diligent's cash position but it had US$622,135 in cash at March 31, having burned through US$421,411 in the March quarter. It has since received US$1,010,430 in cash from a former major shareholder as part of a deal to settle an outstanding debt.

Diligent's shares, floated at $1 in late 2007, rose 4.8% to 66 cents in early trading, having gained from as low as 7 cents in March last year.

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