12th May 2014 11:09
LONDON (Alliance News) - Satellite operator Avanti Communications Group PLC Monday said that sales momentum in the first nine months of the year has continued, although it reported a loss in the period.
Avanti said that trading in the fourth and final quarter has started well, although said that further achievement in the quarter is dependent upon conversion of pipeline to revenue and closing and billing tenders that have been awarded before year-end.
"We have good visibility over around 90% of expected full-year revenues due to the step up in escalating bandwidth contracts the anticipated conversion of major tenders that have been awarded into contracts with payments commencing in the fourth quarter and the achievement of milestones in some contracts," the company said in a statement.
For the nine months to March 31, the group reported a GBP2 million loss in earnings before interest, taxes, depreciation and amortisation.
Avanti said it saw continuing sales momentum in the nine month period with revenues of USD39 million, boosted by new customers and order increases, having signed 26 new contracts in the period. It said it now has a total of 132 customers.
"Our momentum is picking up and growth is starting to look more like a J-curve than a straight line," it said.
The group said that customer increase rate during the third quarter was 32%, up from 12% in March last year, meaning that 32% of the value of new orders during the period were taken from existing customers increasing capacity to service growth.
Avanti said that the sales cycle has compressed significantly this year, and in the third quarter. The average days on pipeline in the third quarter was 91 days, compared with 125 days in 2013.
The sale cycle is quantified by the number of days a potential sale spends on the pipeline before the contract is signed.
"The combination of a shorter sales cycle and growing customer increase rate tells us that the business is gaining traction as the market has accepted our product, understands its purpose and capabilities and our customers like what we do," the company said in a statement.
Avanti shares were down 7.3% Monday morning, trading at 281.75 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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