Wynyard signs $3.2 mln contract, reducing risk of missing 2014 sales target

Monday 5th January 2015

Wynyard Group, the security software firm, has signed a $3.2 million contract with an unidentified national security bureau, which it says reduces the risk of the firm missing its 2014 revenue target.

The contract, providing services to fight organised crime and counter terrorism, was signed on Dec. 31, the last day of its 2014 financial year, allowing some $2.5 million to be recognised that year, the Auckland-based company said in a statement. The deal mitigates the risk of Wynyard missing its targeted revenue range of between $29 million and $32 million for 2014, though doesn't eliminate it entirely, it said.

"This is an important customer with a growth problem - big data, a rapidly changing network of organised criminals and the need to rapidly surface actionable intelligence to help protect the country's citizens and critical national infrastructure," chief executive Craig Richardson said.

Last month Wynyard warned it might miss its forecast sales if larger contract negotiations extended into 2015, meaning the revenue would be recognised after the 2014 balance date.

The company was spun out of Jade Software and debuted on the NZX in 2013, raising $65 million in capital to fund its international growth plans. The crime analytics and risk assessment software is in use by the London Metropolitan Police and the New Zealand and Australian police forces, global banks and corporations, and is making inroads into the US market.

Shares of Wynyard last traded at $1.95, having climbed 64 percent through 2014.

BusinessDesk.co.nz

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