NETD.L Regulatory News (NETD)

NetDimensions (Holdings) Limited

("NetDimensions" or the "Company" or the "Group")

Business Update

NetDimensions (AIM: NETD; OTCQX: NETDY), a global provider of performance, knowledge and learning management systems, is pleased to provide an update for the six months ending 30 June 2014 (the "period").

The Company is pleased to report that revenue for the period was US$9.1M, an increase of 40% (2013 H1: US$6.5M). Growth, which was reported across all regions, was driven by a strong performance from our Software as a Service ("SaaS") offering. The Group continues to focus on supplying software via its global Secure SaaS offering, for which revenues increased by 50% to US$3.9M (2013 H1: US$2.6M).

Invoiced sales for the period were also substantially higher at US$9.1m, an increase of 49% (2013 H1: US$6.1M). Invoiced sales to clients in high-consequence industries represented 83% (2013 H1: 70%) of total invoiced sales for the period, which is in line with our strategy of becoming a leading supplier of Talent Management Systems and related compliance solutions to highly regulated industries.

The Company added 32 (2013 H1: 34) new clients in the period of which 93% (2013 H1: 73%) were in high-consequence industries including Healthcare, Financial Services, Transportation, Telecommunications and Precision Manufacturing. The average deal size for direct new clients in the period increased to US$93K (2013 H1: US$63K), an increase of 48% over prior period.

Invoiced sales from new business was up 79% to US$3.4M (2013 H1: US$1.9M) representing 37% of total revenue (2013 H1: 31%) providing further evidence that the Company's investment in growth is beginning to show a return and that we are executing to plan.

Deferred revenue increased by 38% to US$7.6M (2013 H1: US$5.5M) of which US$4.8M will be released to revenue in the second half of this financial year.

Jay Shaw, Chief Executive Officer of NetDimensions, said: "The Company has made a solid start to this financial year with a strong first-half performance. This performance, along with the deferred revenue, gives management confidence going forward."

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About NetDimensions

Established in 1999, NetDimensions (AIM: NETD; OTCQX: NETDY) is a global provider of performance, knowledge and learning management solutions.

NetDimensions provides companies, government agencies and other organizations with talent management solutions to personalize learning, share knowledge, enhance performance, foster collaboration and manage compliance programs for employees, customers, partners and suppliers.

Recognized as one of the talent management industry's top-rated technology suppliers, NetDimensions has been chosen by leading organizations worldwide including ING, Cathay Pacific, Hunter Douglas, Chicago Police Department, Geely Automotive, Fugro Group and Fresenius Medical Care. 

NetDimensions is ISO 9001 certified and NetDimensions hosted services are ISO 27001 certified.

For more information, visit www.NetDimensions.com or follow @netdimensions on Twitter.