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Publicly listed cloud business software provider JCurve has told shareholders that measures taken to prevent the spread of COVID-19 have resulted in a large number of new customer sales opportunities previously expected to close to be lost or delayed.
As a result, the company said, sales income and unearned income balances have been negatively affected, according to the company’s preliminary unaudited Financial Year 2020 (FY20) results and business update.
The preliminary results for the year ending 30 June show sales income for FY20 of $11.3 million, below its FY20 guidance of $12.5 million-$15.5 million. At the same time, unaudited revenue for the year stands at $11.2 million, while unaudited pre-tax earnings (EBITDA) come in at $200,000.
Unaudited net profit before tax (NPAT) is in negative territory, at -$100,000, and unearned income has been put at $2.3 million.
However, the Oracle NetSuite solution provider also said that it continues to generate strong interest in its wholly owned Riyo solution, experiencing growing market exposure, a growing pipeline of Epicor aged care opportunities and a number of new customer wins.
In January, JCurve Solutions said it was preparing to hand over its Riyo Business software to channel partners, almost two years after first acquiring the company.
JCurve originally paid $600,000 for Riyo, a platform that provides on-demand or scheduled booking, dispatch and payment (BDP) services to businesses.
“Despite the exceptionally challenging market conditions associated with the COVID-19 pandemic,” the company said in a statement to shareholders, “JCurve Solutions remains in a strong financial position which is supported by annual recurring revenue streams exceeding $7 million, a cash balance of $4.2 million as at the end of June 2020 and no external debt, which positions the company to be in a position to take advantage of M&A opportunities as they arise.
“While achieving short term financial growth will be challenging given the level of uncertainty, we have continued to invest, particularly in Asia and Riyo, thereby setting up the business up for accelerating growth in the medium term in line with our strategy,” it stated.
In February, JCurve Solutions revealed it had seen its net profit after tax sink further into the red to $274,018 for the first half of FY20, ending December 31.
Normalised EBITDA increased from $117,980 loss to $242,635 in the positive while revenue for the half increased 11 per cent to $5.7 million.
In a statement issued to shareholders at the time, JCurve chairman Bruce Hatchman said its customer contract portfolio was heavily weighted towards the second half of each financial year, and expects the shift to more complex NetSuite solutions will deliver stronger future revenue and profit potential from increased consulting opportunities, and reduced customer churn.
