Diligent shares surge after strong Q1

Shares of software company Diligent Board Member Services surged after the company reported its strongest first quarter results on record.

The company, which is listed in this country but based in New York, today reported net sales revenue of US$1.75 million ($2.45m) for the three months to the end of March, compared to US$1m a year earlier.

After the announcement shares in the company rose 8c, or 17 per cent, to 55c, their highest level in 23 months.

The company said it added US$590,000 in annualised licence fees in the latest period. That is lower than for the preceding two quarters but better than all other quarters since the company started offering licences eight years ago for Diligent Boardbooks - a web-based portal that enables board materials to be updated and examined before and during board meetings.

The first quarter was traditionally its slowest part of the year, Diligent said.

Total annualised licence fees were up to US$6.89m at the end of the quarter, 58 per cent higher than a year earlier.

Momentum built up during the first quarter appeared to be carrying over into the second three months, as new sales inquiries continued at a healthy pace, Diligent said.

Partly that reflected a recovery of confidence in the global economy, but more importantly was due to Diligent's growing reputation.

The strong start for the year boded well for the company as it moved towards its near-term goal of becoming cashflow positive by the third quarter of 2010.

- NZPA