You are using an older browser version. Please use a supported version for the best MSN experience.

Revenues to stall for SLI Systems

NZ NewswireNZ Newswire 5/05/2016 Jonathan Underhill

Online retail search engine developer SLI Systems say annual recurring revenue growth is likely to stall in its full-year after the loss of three customers.

The forecast for ARR for the year ending June 30 comes after the Christchurch-based company in February posted first-half ARR growth of 23 per cent to $35.6m.

Operating revenue gained 30 per cent to $17.4m, while its loss narrowed to $502,000.

For the full year, ARR "will be relatively flat compared to June 2015, primarily due to the loss of three large customers"' the company said.

Operating revenue was expected to rise 25 per cent to $35m, a record for the company, SLI said.

Chief executive Chris Brennan said two of the losses were the result of insolvencies and the third reflected a change of ownership of a company.

"This is not a reflection on the market or SLI's products, but rather extenuating circumstances that are unusual and beyond the company's control," Mr Brennan said.

He said SLI has cash of $6.3m, up from $5.6m at June 30 last year and "will not need to raise additional capital to achieve cash flow break-even performance".

image beaconimage beaconimage beacon