Wynyard Group 1h15 Results

Wynyard Group 1h15 Results

Auckland, 25 August 2015 - Wynyard Group (NZX:WYN), a global market leader in serious crime fighting software, today released its first half results to 30 June 2015 and provided further details on planned new product releases.

Highlights for the six months to 30 June 2015 are as follows:

1H15 revenue and other income increased to $14 million and operating costs were in line with expectations

• Total Revenue and Other income up 39% to $14.0M against $10.1M for the same period last year

• New software licence revenue was up 118% compared to 1H14

• Recurring software revenue at 54% is in line with the FY14 full year number of 53%

• Revenue from partner channels increased to 15% of Total Revenue and Other Income compared to 1.2% for the same period last year

• Operating costs at $25.5M were on plan, and up 54% on 1H14 reflecting the company’s increased investment in capacity and capability to deliver on growth objectives

• Depreciation and amortisation costs were $6.2M compared to $4M last year following new software version releases in 2014

• Net loss after taxation for the six months was $17.6M compared to $10.2M as Wynyard forgoes profit to invest in growth and its global expansion

Wynyard had $41.1M cash on hand at the end of June which was in line with the company’s planned cash position at the end of the period.

Wynyard made significant investment in product development to strengthen its position in the fastest growing segments of the serious crime market including a new configuration of its Advanced Crime Analytics platform to tackle high consequence cyber threats against high value crime targets in government, financial services and critical national infrastructure. Wynyard Advanced Cyber Threat Analytics (ACTA) will launch 2H15.

“The security software market offers tools for known threat detection but the volume of attacks, previously unknown threats and alerts is overwhelming security decision makers. We have designed Wynyard’s ACTA solution with Chief Information Security Officers to solve this problem. ACTA leverages existing security tools and other high volume data sources to prioritise and act on the highest consequence cyber crime threats facing organisations today,” said Wynyard CEO, Craig Richardson.

The company will launch ACTA and new releases of Advanced Crime Analytics (ACA) and Investigations Case Management (ICM) software products in 2H15, underpinning future revenue growth capability.

Wynyard expanded its partner distribution program, and entered into a major strategic distribution partnership with Motorola Solutions, initially focused on the United States law enforcement market. This partnership is already generating revenue.

The company also entered into negotiations with partners for regional and global distribution of Wynyard’s new ACTA solution.

Wynyard successfully raised $42.6 million in growth capital in July, to increase staff, expand operations, invest in product development and support an increase in working capital driven by expanding deal size.

While the placement was well supported, the Board believes the current share price, driven by the thinly traded retail market, is not reflective of the company’s value considering its market opportunity and relative to pre-IPO and listed peers in other tech savvy markets.

FY15 revenue outlook is unchanged at this stage and new solutions will begin to smooth future period revenue volatility. Based on the current sales pipeline, Wynyard continues to expect FY15 revenue in the range of $40-45 million.

As Wynyard expands into new regions, delivers new product releases and launches new solutions targeting higher value customers, there is increased revenue recognition and contract execution timing risk. Wynyard has sought to smooth this volatility in future periods with its highly repeatable Advanced Cyber Threat Analytics solution which is expected to have a shorter sales cycle and to deliver significant recurring software revenue in FY16.

“Wynyard is in one of the hottest technology markets with serious crime fighting software to help solve some of the world’s most challenging security problems. We are investing in the talent, operations and growing the partner distribution network required to reach and service our customer opportunities and have made good progress on our mission in the first half of this year,” said Richardson.

Wynyard currently anticipates completing its dual listing on the ASX during 4Q15.

ENDS

About Wynyard Group:

Wynyard Group is a market leader in serious crime fighting software used by customers in government security, justice, law enforcement, financial services and nation critical infrastructure.

Its powerful advanced crime analytics and investigations case management products help customers prevent and solve serious financial crime, organised and trans-national crime and new generation threats from extremism and high consequence cyber crime.

Wynyard solutions bring together next generation big data capability with specialist investigations and intelligence tradecraft on one powerful software platform.

Wynyard partners with major systems integrators and some of the world’s leading software companies and has operations in the United States, United Kingdom, Canada, Middle East, Australia and New Zealand.

ends

© Scoop Media