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Diligent shares up as profit rises, revenue doubles

Top NZX performer, and quiet tech achiever, reports another strong result.

NBR Staff
Tue, 28 Feb 2012

Diligent Board Member Services has produced its second successive quarterly operating profit in the December quarter, with annual sales surging 116%.

The New York-based, NZX-listed maker of online reporting tools for board members, reported a fourth-quarter operating profit of US$580,736 took its operating profit for the 2011 year to US$900,000 from an operating loss of US$2.4 million in 2010.

Net profit rose 4% to US$2.2 million, although both the 2010 and 2011 results were distorted by write-backs of previously written off debt owed by its former major shareholder, thanks to its surging share prices.

It returned US$1.2 million in 2011, which was don from US$4.3 million in 2010.

Diligent 12-month chart courtesy CapitalIQ

Shares [NZX:DIL] spiked 6.7% to NZ$2.88 in early trading today, before easiing back.

The stock has climbed from 77 cents in March of last year and from as low as 7 cents in March of 2009, when the company’s future looked rather doubtful.

The company’s market capitalisation is currently now NZ$235.6 million.

“This has been a historic year for Diligent in many respects as we have dramatically increased our sales, revenues, operating margins, operating profit, cash-flow and cash-flow position,” said the company in a statement.

“Fiscal year 2011 has indeed been a watershed year” in which its “value proposition created by the Diligent Boardbooks product has continued to resonate with companies and various organisations in North America, Europe and the Asia Pacific regions.”

Diligent said the results demonstrate senior management’s ability to manage its “explosive growth” without sacrificing profitability as well as underscoring the financial leverage of the company’s software-as-a-service model.

Sales climbed to US$18 million in 2011 from US$8.3 million in 2010 while ongoing annualised license fee income rose to US$25.7 million from US$10 million in 2010.

The company said it expects operating margins and cash-flow position will continue to improve this year. It is “well-positioned to deliver another year of exceptional performance and outstanding value to our clients and shareholders.”

NBR Staff
Tue, 28 Feb 2012
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Diligent shares up as profit rises, revenue doubles