Wynyard beats 2013 sales forecast, posts wider loss on increased investment, IPO costs
Wynyard Group [NZX: WYN], the intelligence software developer, just beat its forecast annual sales by attracting customers to its suite of services, while posting a bigger loss than expected a because of investments and listing costs.
The Auckland-based company posted a pro-forma loss of $11.2 million in calendar 2013, from a loss of $3.7 million a year earlier. That was ahead of the $10.1 million shortfall forecast in its June prospectus. Revenue more than doubled to $21.7 million, just ahead of the forecast $21.5 million, with 110,800 licenced end-users. The company said it is likely to beat its 2014 sales forecast of $27 million.
"Wynyard is strongly positioned in the new fast-growing advanced crime analytics market," chief executive Craig Richardson said in a statement. "While the end game for Wynyard is a highly profitable company with lifetime customers, investing for growth and continued momentum is critical at this stage to extend Wynyard's product leadership position and global market share."
In November, Wynyard brought forward recruitment of new sales and services staff to manage next year's growth pipeline, adding between $1 million and $1.5 million to the forecast operating expenditure of $25 million for the 2013 calendar year.
The shares were unchanged at $2.86 today, and have soared 146 percent this year as investors chased companies with growth potential.
Wynyard burned through more cash than forecast in 2013, with operational cash outflow of $5.29 million, compared to a forecast $3.07 million. That left the company with funds of $17.04 million as at Dec. 31, less than the $20.85 million forecast.
The company said the shortfall was due to a timing difference between revenue recognition and invoicing of software licences, and also higher than expected initial public offer costs of $500,000.