7 Jan 2014 07:00
NetDimensions (Holdings) Limited
("NetDimensions" or the "Company")
Trading Update for the 12 months to 31 December 2013
NetDimensions (AIM: NETD; OTCQX: NETDY), a global provider of performance, knowledge, and learning management systems, is pleased to provide a trading update for the 12 months to 31 December 2013 (the "period").
Sales revenue and invoiced sales for the period are likely to be substantially higher than for the prior year. Company management expect to report full-year 2013 GAAP revenue comfortably in excess of the consensus forecast of US$15.8M and to report invoiced sales of some US$17.6M. These results were helped by a particularly strong performance in the second half with both sales revenue and invoiced sales growing by more than 20% from the second half of 2012.
In addition, the full year loss before interest and certain non-cash items will likely be substantially lower than current market expectations. The Company ended 2013 with no debt, more than US$7.7M in cash and some US$6.6M in short-term receivables.
The Board is particularly encouraged by the performance of the Company's Software as a Service ("SaaS") business. SaaS sales revenue in the period is likely to be in the region of US$6.1M (2012: US$4.5M), an increase of 36% over the prior year. The shift to SaaS is a result of the Board's strategy to position the Company as a primarily SaaS business with the benefits of more predictable recurring revenue and greater opportunities for up-selling.
The Company continues to target clients in high-consequence industries in line with the business plan. We are pleased to report that we added 67 new clients in the period, including Royal Caribbean Cruises Limited, KPMG LLC, General Mills (Häagen-Dazs), Omron, Jaguar Land Rover Limited, Globus Medical, Babcock, BCD Travel, Digicel Group, Emdeon, The Nature Conservancy and Musculoskeletal Transplant Foundation. The new clients operate in a variety of industries, including high-consequence industries such as transportation and logistics, automobile manufacturing and distribution, law enforcement, financial services, precision engineering, life sciences and healthcare.
The deferred revenue balance at the end of 2013 will likely be in the region of US$7.6M (2012: US$6.1M), an increase of 25% over the prior year. Management expect almost all of the 2013 deferred revenue to convert to GAAP revenue in 2014, providing the Business with a solid start to the new year.
"The sales revenue and invoiced sales numbers for the second half were very encouraging, in fact substantially ahead of the prior year numbers," said Chief Executive Officer Jay Shaw. "These figures give us confidence that the plan we started to implement in May 2013 can and will deliver substantial revenue growth over the next few years," he added. "I am particularly pleased with the performance of our SaaS learning, performance and analytics offerings. We intend to grow these revenue lines aggressively."
Enquiries:
NetDimensions (Holdings) Limited | Tel: +852 2122 4500 | |
Jay Shaw Matthew Chaloner | ||
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Panmure Gordon (UK) Limited (Nomad & Broker) | Tel: +44 20 7886 2500 | |
Fred Walsh | ||
Ben Roberts | ||
Walbrook PR Ltd (Financial Public Relations) | Tel: +44 20 7933 8792 | |
Bob Huxford | bob@walbrookpr.com | |
Helen Cresswell | helen@walbrookpr.com |
About NetDimensions
Established in 1999, NetDimensions (AIM: NETD; OTCQX: NETDY) is a global provider of performance, knowledge, and learning 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 in overall customer satisfaction, 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.
The NetDimensions Interactive business unit provides content and application development services to personalize the learning experience.
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.