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Finzsoft revenue falls 28% in first half

Finzsoft revenue falls 28% in first half

Variable revenues and one-off transaction costs cited as profit plunges.

Sales are down at Finzsoft and so is profit, the company reported to the NZX.

Sales are down at Finzsoft and so is profit, the company reported to the NZX.

Finance and banking software developer Finzsoft's operating revenue fell by 28.3 per cent to $7.44 million in the six months to 31 December.

In the same period of 2016 revenue, derived from annual licence, initial licence fees and professional services, was $10.4 million. 

The NZX-listed company reported a loss of $305,000, down from a profit of $2 million the previous year while EBITDA of $200,000 was down from $3.7 million.

Finzsoft's flagship product, Sovereign, is a core banking and front-end system targeted at banks, building societies, credit unions and finance companies.

Finzoft said the timing of revenues is variable and based on current contracted revenue, along with pipeline opportunities, the company expected to operate profitably with no debt and positive cash flow.

"Finzsoft continues to trade well and has invested heavily in new business models to support its leading position as the next generation Connected Core, digital and SaaS banking and financial institution software, and the expansion into Asean markets," Finzsoft said.

The period included non-recurring transaction related costs in excess of $500,000.

In December 2017, Finzsoft entered into a relationship with Datacom to create what it described as "a scalable and flexible model" to ensure that the business can continue to grow into new and existing markets.

That five-year, $20 million deal saw Datacom hire and take over the management of Finzsoft's professional services team.

Further investments into the sales and marketing have been made to take advantage of regional opportunities.


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