(Alliance News) - WANdisco PLC on Wednesday reported a widened interim loss but is confident of hitting its full-year revenue target.
WANdisco is a data-management software company whose platform, Fusion, ensures the consistency of data across different cloud systems, keeping it available and accurate from any location at anytime.
Shares in the firm were down 13% in morning trading on Wednesday at 455.00 pence each.
In the six months to June 30, WANdisco recorded a pretax loss of USD16.7 million, widened from the USD11.2 million reported a year before.
WANdisco's operating expenses increased 26% to USD22.1 million from USD17.6 million, attributed to investments in the company's sales and engineering units.
The company's revenue increased 5.3% year on year at USD6.0 million from USD5.7 million.
"The business continues to achieve a significant proportion of contracted revenue through direct sales, in most cases these direct sales are only achievable through the close partnerships held with major cloud vendors," the company explained.
Going forward, WANdisco said it hopes to shift the balance of sales from partner channels to direct sales. During the first half, the company saw its first multi-cloud contract win.
Chair & Chief Executive David Richards said: "The core focus of management in the first half was securing the breakthrough deal with a major enterprise cloud partner announced on July 15. The deal, one of the most important developments in our journey to date, is a significant co-development project which sees our technology deeply embedded into the vendor's cloud offerings.
"The deal combines our Fusion technology with the scale, reach and enterprise capabilities of the Partner's platform, with the sales and billing process fully independent from WANdisco."
The firm's deferred revenue at the end of the half stood at USD4.7 million.
Looking ahead, WANdisco is "confident" of hitting its USD24 million full-year 2019 revenue guidance. In 2018, the company generated USD17.0 million in revenue.
"This guidance comprises renewals, late-stage deals as well as a pipeline of partner-driven sales and is underpinned by strategic partnerships that were initiated during the second half of 2019," the company said.
Richards added: "Our technology and go-to-market platform is building critical mass, with our breakthrough co-development deal a flagship example of the operational leverage developing within our business. This strong platform for growth and evolving pipeline of late stage deals in the early months of the second half leaves us in a strong position, underpinning the board's confidence in the second half and beyond."
By Paul McGowan; paulmcgowan@alliancenews.com
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