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

Shares slide for SLI Systems

NZN 5/05/2016 By Jonathan Underhill

Shares in online retail search engine developer SLI Systems have slipped to a two-month low after it said annual recurring revenue growth is likely to stall.

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.

SLI shares fell 4.8 per cent to $1, the lowest since March 1.

The stock soared about 50 per cent in the two weeks following its first-half results but it has been a disappointing ride for investors since its 2013 initial public offering at $1.50 a share.

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