Diligent Board Member Services says it remains on track to achieve cash flow break even in the third quarter after another solid increase in sales for the second quarter.Net sales for the three months to June 30 were $US1.92 million, up 66% on the same pe
Diligent Board Member Services says it remains on track to achieve cash flow break even in the third quarter after another solid increase in sales for the second quarter.
Net sales for the three months to June 30 were $US1.92 million, up 66% on the same period a year ago and up 9.7% on the first quarter this year.
Diligent, which develops software to help corporates access safe and secure information via the internet, said its annualised license fees increased by $690,000 for the second quarter, a 48% improvement.
Total annualised license fees were $US7.55 million at the end of June, compared to $US4.89 million at the same time last year.
Diligent said the sales growth was achieved without adding extra sales staff and occurred during a traditionally slow quarter.
“Diligent notes that signings from client referrals are making up an increasing proportion of its sales,” the company said in a statement to the NZX.
“These referral sales mean Diligent is able to grow its revenue base with greatly reduced marginal customer acquisition costs.”
The company, which is listed in this country but based in New York, now has 356 worldwide clients and 9,500 users of its Boardbooks profits.
In May the company reported a bottom line net profit of $US2.49 million for the three months to March 31, after revaluing the collateral behind a $US7.16 million promissory note due to be repaid by its predecessor, SSH LLC, in October.
“Diligent remains firmly on track to deliver on its stated aim to achieve “cash flow” break even in Q3 2010,” the company said today.
Diligent shares closed last night at 63c. The stock has recovered from its lows to be up 152% since January.
In midday trading, the company's shares (NZX: DIL) were up 4.76% to 66c.
