Diligent Board Member Services has leapt to profit on the back of record first quarter sales and a positive revaluation of a loan due from an affiliate.The company, which is listed in this country but based in New York, today reported a bottom line net pr
Diligent Board Member Services has leapt to profit on the back of record first quarter sales and a positive revaluation of a loan due from an affiliate.
The company, which is listed in this country but based in New York, today reported a bottom line net profit of $US2.49 million for the three months to March 31, compared to a loss of $US1.48 million for the previous corresponding period.
Net sales revenue of $US1.75 million was up 75% compared to the same quarter a year ago.
Diligent recorded an operating loss of $US736,034, compared to a loss of $US1.52 million for the first quarter 2009.
However, the company recorded non-operating income of $US3.2 million after revaluing the collateral behind a $US7.16 million promissory note due to be repaid by its predecessor, SSH LLC, in October.
The loan was secured by Diligent shares, which have climbed from about 10c to 63c over the last 12 months.
Diligent, which develops software to help corporates access safe and secure information via the internet, has 320 worldwide clients and more than 8500 users.
Diligent estimates it will break-even at the cashflow level later this year.
“Today, as a result of our commitment to sales and marketing, we are currently experiencing outstanding financial growth,” the company said in its latest Securities and Exchange Commission filing.
“The company has continued to meet growth projections through the first quarter of 2010, and the sustained upward climb in our stock price shows that market confidence has been restored.”
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