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Diligent Reports $23.5m Loss

Fuseworks Media
Fuseworks Media

Wellington Feb 26 NZPA - Software company Diligent Board Member Services today announced an $US11.8 million ($NZ23.5 million) operating loss for the 2008 financial year.

Diligent produces Diligent Boardbooks, a web-based system to simplify board meeting materials.

It was founded by New Zealander Brian Henry and moved its software division from New York to Christchurch in 2001.

Diligent's 2008 financial year was its first full year as a listed company on the New Zealand Stock Exchange.

Sales for the 2008 financial year of $US2.93m were up on $US1.73 million for the prior year.

But operating expenses were $US12.87m, including $US6.2m in selling and marketing expenses and $US5.4m in general and administrative expenses.

However, chairman Rick Bettle said booked annualised license fees, which indicate the ongoing income generated by the company, were $US3.85 million at yearend 2008, compared to $US2.06 million at yearend 2007.

"It was particularly encouraging that Diligent's fourth quarter performance was the strongest since the inception of its predecessor in 2002," he said.

Unfortunately Diligent, whose core business is based in the US, was not immune to the devastating impact of the global financial crisis, he said.

"The projections and expansion plans that seemed realistic and achievable at the time of Diligent's IPO (initial public offering), and that were indeed warrantied to be achieved with 14 million shares by the founding shareholders, were curtailed in large part by this unforeseen financial tsunami."

Though 2008 was an extremely challenging time for the company, there were still many positives, he said.

Diligent expanded the sectors it has clients in to now include energy, oil and gas, health care, and universities.

Diligent shares were today worth 15c.

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