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JCurve Solutions posted net a loss of more than $200,000 for the half year ended 31 December 2018 following a series of sales delays.
The Sydney-based company’s net profit after tax (NPAT) sank by 153 per cent from the corresponding period in 2017 when it made a profit of $400,000.
Revenue for the half year reached $5.2 million, a three per cent rise from $5 million the year before. JCurve recently revised its annual revenue forecast for the financial year 2019 from a maximum of $14.5 million to $13 million citing sales ‘headwinds’.
According to its shareholder update, the publicly-listed company attributed the results to a transition towards ‘larger deal sizes’ and more complex NetSuite solutions.
As such, it experienced longer sales and delivery cycles, plus delays in recognition of revenue and profit.
JCurve gained 34 new NetSuite enterprise resource planning (ERP) customers last year and saw the division’s revenue increase by 11 per cent, rising to $3.9 million.
However, facing customer ‘churn’, the firm’s telecom management expense solutions (TEMS) arm’s revenue dipped by 21 per cent to $1.2 million. The division’s profit before tax meanwhile sunk by 30 per cent, making $600,000.
The results come a year after JCurve acquired software firm Riyo Business and a month since announcing its intention to buy Spectrum Partner Group, a Singapore-based Oracle NetSuite partner.
Looking ahead, the company forecast ‘overall growth’ within its Australian ERP and Riyo businesses.
The company also said it saw ‘significant immediate and long term growth opportunity’ in the Asian market and has now opened an office there, claiming it had a ‘healthy sales pipeline of new business opportunities’.
