12 Oct 2011

Record quarter for software company

10:51 am on 12 October 2011

Shares in the software company Diligent Board Member Services have risen after another record-breaking quarter of revenue growth.

Net annualised licence fees rose fivefold to $US5 million in the three months to September, compared with the same period a year ago, its fifth consecutive quarter of growth.

The fees, which includes new and cancelled business, quadrupled to $US9.8 million in the nine months to September.

Diligent software helps company boards keep track of their papers online, and it generates its income from annual subscriptions for the software.

The popularity of the iPad among executives has boosted sales. While the United States accounts for about two-thirds of sales, chief executive Alex Sodi says growth in Britain and Europe has risen sharply.

New licences quadrupled to 170 in the quarter, while upgrades hit a record $US700,000, and Diligent says it's now profitable on an operational basis for the first time in its history.

However, the company's half-year profit fell by more than half to $US822,000, due to a one-off loan repayment.