Diligent lifts sales and reduces loss

Photo / Natalie Slade

Software company Diligent Board Member Services has reported a first half operating loss of US$1.45 million ($2.02 million), as it produced its best ever sales results.

The operating loss for the six months to the end of June compares with a loss of US$2.78 million a year earlier.

For just the three months to June the operating loss was US$715,000, an improvement from the US$1.27 million loss for the corresponding period in 2009.

Diligent, which offers licences for a web-based portal that enables board materials to be updated and examined before and during board meetings, added licence fees of US$1.28 million in the first half.

That was up from US$990,000 for the same time in 2009 and US$810,000 in 2008.

Chairman David Liptak said sales revenue was up 70 per cent while operational costs had fallen about 3 per cent. Cumulative annualised licence fees were at US$7.55 million.

Given the current level of new client interest and inbound sales activity, Diligent expected the sales momentum generated during the first half to continue throughout the rest of the year, Liptak said.

At March 31, the company also recorded a recovery of US$3.2 million on its note receivable from Services Share Holding, Diligent's predecessor entity. The recovery had a positive impact on profitability, Diligent said.

In February Services Share Holding had made a partial pre-payment of the note of about US$1 million, with the proceeds received in June, providing Diligent with additional liquidity.

Diligent shares last traded steady at 64c, having traded between 73c and 19c in the past year.

- NZPA