18th Sep 2014 08:52
LONDON (Alliance News) - WANdisco PLC Thursday posted a widened pretax loss for the half-year to the end of June as heavy investment in its newer Big Data products offset revenue growth from its established Application Lifecycle Management business.
The software company posted a pretax loss of USD18.5 million, widened from a loss of USD7.1 million, as revenue rose to USD5.0 million from USD3.5 million, although this was offset by operating expenses more than doubling from USD9.9 million to USD22.5 million.
In addition to increasing product development expenditure, the company also upped its headcount to 162 from 147. WANdisco expects its operating costs for the remainder of the year to remain broadly stable compared to the first-half.
Following the half year end the company secured a USD10 million revolving credit facility with HSBC Bank PLC, which it will use to finance its continued expansion in the Big Data market.
Sales bookings for the half-year were USD7.4 million, up from USD6.1 million, primarily driven by the company's ALM business. The ALM business secured 26 new subscriptions for the year with clients including ARM Holdings PLC and Panasonic Corp, and renewals from customers including Cisco Systems Inc and PetSmart Inc.
USD300,000 of bookings came from the company's Big Data division, which added three customers, and advanced production trials with a number of other potential clients.
WANdisco said a priority for the remainder of the year are converting its Big Data product trials into subscriptions; although it cautioned that the complexity of trials made the timing of their conclusion difficult to predict, it expects to transition a number of these trials over the coming months.
It expects the ALM business to continue to generate strong sales bookings growth on the back of new product releases.
"Our first half progress has moved us forward significantly along our path to becoming the leading provider of non-stop infrastructure for Big Data," said Chief Executive Officer David Richards in a statement.
Shares in WANdisco were trading down 4.5% at 370.00 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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