Last checked at 28 Oct 2010 10:31
Gresham Computing plc ("Gresham" or the "Company")
28 October 2010
Significant contract renewal
Gresham Computing plc (LSE: GHT), the specialist provider of real-time financial solutions, is pleased to announce the renewal of a significant Software contract, securing total revenues to Gresham of £1.3 million which, in line with the Company's accounting policy, will be recognised evenly over the 4.5 year term of the contract.
Total revenues accruing over the term of this renewal are slightly ahead of the Board's expectations due to higher than anticipated future usage and, in a change to the traditional license and maintenance deals, the renewal follows a Software as a Service model.
The full £1.3 million renewal fee is payable to Gresham in the 2010 financial year. As a result, the Board now expects the Company's cash position at 31 December 2010 to be materially ahead of prior estimates.
Chris Errington, CEO Gresham, commented:
"The contract renewal locks in future revenues, significantly enhances our cash position and transitions this significant customer to a Software as a Service model."
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For further information please contact:
Gresham Computing plc | +44 (0) 20 7653 0200 |
Chris Errington, CEO | |
Singer Capital Markets Ltd Shaun Dobson, Partner and Joint Head of Corporate Finance | +44 (0) 20 3205 7500 |
James Maxwell, Director of Corporate Finance |