Takeover target Diligent has posted a dip in annual profitability, but continues to roll out its products and acquire other companies.
Total customer agreements grew from 3000 a year ago to about 3900.
Diligent generated $US21.2million cash from operations and invested $US19.3million in capital expenditure, including $US10million for its acquisition of BoardLink, and ended the year with $US70.2million cash in hand.
Craigs Investment Partners broker Peter McIntyre said while revenue growth had "ticked up'', that was in line with expectations, and also included a cash benefit from the BoardLink acquisition.
Diligent had a jump in cashflow during the fourth quarter as it dealt with teething issues with the implementation of a new product, Mr McIntyre saying the fourth quarter was seasonally the strongest period for subscription renewals, particularly for US customers.
He said Diligent would not be hosting a conference call to talk through its financial results with analysts, given the proposed takeover transaction.
Diligent itself yesterday only restated it had a "definitive agreement to be acquired'' by US private equity company Insight Venture Partners, and repeated the terms of the $US4.90-per-share offer, worth a total $NZ941million.
"The holders of Diligent's preference shares, including Spring Street Partners, L. P., Diligent's largest shareholder, have entered into voting agreements in support of the transaction,'' the company said.
Diligent being incorporated in the US, the threshold for the takeover is lower, requiring 60% acceptances, whereas under the New Zealand takeovers code, it would require 90% acceptances.
Forsyth Barr broker Peter Young said the key metric was that subscribers were up against last year, but he noted that some came from the acquisition of Thomson & Reuters BoardLink service.
Diligent
• Provides secure corporate governance software for boards and senior executives, has about 3900 clients across more than 60 countries.
• Revenue for the year ended December up 20% to $US99.3m.
• Americas: 18% revenue increase to $69.4m; 70% of total
• Europe/Middle East/Africa: 22% revenue increase to $20.8m; 21% of total.
• Asia Pacific: 28% revenue increase to $9.1m; 9% of total.
• Ebitda, down from $US17.9m a year ago to $US15.8m
• After tax profit, down from $US8.9m to $US8.1m.
SOURCE: DILIGENT
