Diligent could break even after 'exceptional' 2009

Software company Diligent Board Member Services is expecting to achieve break-even with its cashflows around the end of the third quarter of this year, after reporting a net loss of US$4.16 million ($6.04 million) for last year.

The 2009 result compares to a loss of US$17.65 million a year earlier, with the company yesterday describing its 2009 performance as "exceptional".

Diligent, which is listed in this country but based in New York, said it signed 110 new agreements during the year, up 63 per cent from a year earlier, generating an additional US$2.5 million in annual recurring revenue.

That took the cumulative annualised licence fees total to US$6.3 million as at December 3. Actual annual sales - revenue generated from existing and new contacts and upgrades - topped US$5 million for the first time, a year-to-year rise of 71 per cent.

Total operating expenses dropped to US$7.53 million in the latest year from US$12.87 million in 2008. While the cost of revenues lifted to US$2.19 million from US$1.88 million, the cost of revenues as a percentage of revenues fell to 43.7 per cent in 2009 from 64.1 per cent the year before.

"At the current level of reduced expenses, coupled with current sales growth forecasts, Diligent's management believes that it will achieve cash flow break-even around the end of the third quarter of the current financial year," Diligent said.

- NZPA