19th Sep 2016 08:03
LONDON (Alliance News) - NetDimensions (Holdings) Ltd on Monday reported a narrowed pretax loss for the first half of 2016, helped by improved margins.
For the half year to the end of June, the software and services company reported a pretax loss of USD1.2 million, narrowed from a pretax loss of USD2.5 million the year before, as revenue declined slightly to USD10.5 million from USD10.6 million.
This was primarily as a result of improved gross margins of 85% in the half year, compared to 81% the prior year, due to reduced cost of sales related to services and a better product mix of higher-margin licence revenue.
NetDimensions said it continues to make progress in its business plan, seeing active users rise to 4.2 million at the end of the half, compared to 3.9 million the prior year, and recurring revenue increase to 70% of its total revenue, compared to 68%.
"The company made good progress in the period in terms of better cost control and declaring a substantially smaller loss than the prior period. The company did experience some delays in rolling out some larger client contracts in the first half; however the high consequence industries which we service continue to show demand for our product suite," said Chairman Graham Higgins in a statement.
Shares in NetDimensions were down 1.7% at 37.10 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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