Integrated Research Limited Half Year Financial Results
21 Feb 2012
Sydney, Australia, 16 February 2012 – Integrated Research (ASX:IRI) leading global provider of high-definition performance monitoring, business intelligence and diagnostic software, today released its results for the six month period ending 31 December 2011.
The Company achieved a 50% increase in profit after tax over the equivalent prior half to $3.6 million, which is at the upper end of the guidance provided to the ASX on January 9, 2012. Revenue from licence sales grew 16% to $12.3 million. Total revenue for the Company increased by 8% over the equivalent prior half, to $22.1 million. The result was negatively impacted by an appreciating Australian dollar and in constant currency licence sales would have grown by 27% and revenue by 18%.
All product lines performed well and achieved the following sales results:
- Unified Communications (formerly IPT) licence sales increased by 30%
- Financial payments licence sales increased by 35%
- Infrastructure licence sales, which includes HP-Nonstop, was steady
Consulting services revenue increased by 14%.
Over 95% of revenue is derived outside Australia.
Steve Killelea, Chairman of Integrated Research said “The results are very pleasing given the continuing strength of the Australian dollar and the challenging economic conditions. I would expect the company’s performance to remain strong in the second half of the financial year."
The company achieved strong Unified Communications sales growth across the US and Asia Pacific regions. The successful increase in licence sales is in part attributable to the Company’s strategic alliances with major technology vendors and the successful uptake of Prognosis within their customer bases.
Mark Brayan, CEO of Integrated Research said “I am very pleased with our first half performance which was driven primarily by growth in our Unified Communications and Payments products. Despite the current economic climate, we anticipate that our customers will continue to invest in IT for productivity gains.”
The Company's overall expenses grew by 6% with staff numbers growing by 12% over the half to 182. The Company continues to invest in research and development with total spending representing 22% of revenue (prior half year: 22%).
The table below summarises the Company’s key revenue, expense and profit results compared to the prior year. In constant currency, revenue from maintenance grew by 6% reflecting continuing strong retention in the Company's maintenance base.
Directors have declared a final dividend of 2.0 cents per share franked to 40 percent. Integrated Research continues to maintain a strong financial position and remains free of debt with a total cash position at 31 December 2011 of $9.7 million.