Software company Diligent Board Member Services has reported a first half operating loss of $US1.45 million ($NZ2m), 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 $US2.78m a yea
Software company Diligent Board Member Services has reported a first half operating loss of $US1.45 million ($NZ2m), 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 $US2.78m a year earlier. For just the three months to June the operating loss was $US715,000, an improvement from the $US1.27m 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 $US1.28m in the first half.
That was up from $990,000 for the same time in 2009 and $US810,000 in 2008.
Chairman David Liptak said sales revenue was up 70 percent while operational costs had fallen about 3 percent. Cumulative annualised licence fees were at $US7.55m.
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, Mr Liptak said.
At March 31, the company also recorded a recovery of $US3.2m on its note receivable from Services Share Holding, LLC, Diligent's predecessor entity.
That reflected the belief that Diligent would collect more of the amount due on the note than previously estimated as a result of an increase in the value of the collateral for the note.
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 $US1m, with the proceeds received in June, providing Diligent with additional liquidity.
Diligent shares last traded at 64c on Monday, having traded between 73c and 19c in the past year.
