3rd Sep 2018 09:44
LONDON (Alliance News) - WANdisco PLC on Monday said it expects the number of bookings to decrease in the first half of 2018 as it stands away from on-premise transactions.
Shares in WANdisco were down 9.6% on Monday at 863.40 pence each.
The software company said it secured lower number of bookings in the six months to the end of June, taking the total value of all contracts received in the period to USD9 million from USD10.2 million reported for the same period a year earlier.
On a divisional basis, the Big Data unit bookings declined year-on-year to USD6.2 million from USD7.0 million, while Source Code Management segment bookings fell to USD2.8 million from USD3.2 million.
Despite this, the company said it still expects to achieve its full-year targets.
During the first-half, WANdisco said it expanded its relationship with computer manufacturing company IBM Corp, increasing the royalty payable to WANdisco to 50% from 30%. The company will also participate in a joint engineering work to support IBM BigSQL and other products.
Meanwhile, WANdisco Fusion live data platform will be sold as standard packaged offering with Microsoft Corp Azure, as it signed three strategic deals with Microsoft customers in banking, semiconductors and retail.
"In the first half we began the transition toward predictable, annual recurring cloud revenue and away from large and difficult to forecast on-premise transactions," said Chief Executive David Richards.
"This is an expected and extremely positive evolution for our business," Richards continued. "It opens up a significantly larger addressable market in the cloud and will enable us to generate a more predictable- recurring revenue base."
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