(WAN-V) One of Dino's tech plays on the move. Closed $1.13 up 6 cents vol. 104,000 shares. Wanted Technologies Corp. has released its financial results for the fiscal year ended June 30, 2014.
Highlights
Revenues of $10,056,648, an increase of 39 per cent, or $2,825,429, compared with revenues of $7,231,219 for fiscal 2013. Excluding a significant non-recurring revenue of $976,988 derived from one agreement, revenues grew 26 per cent over the prior year;
Record net income of $2,634,753 (10.9 cents per share) for fiscal 2014 compared with a net income of $1,362,555 (5.7 cents per share) for fiscal 2013, an increase of $1,272,198;
Earnings before interest, taxes, depreciation and amortization of $3,659,329, or 36 per cent of revenues, compared with EBITDA of $1,816,907 in the prior year, an increase of $1,842,422;
Growth of 24 per cent in the company's recurring revenue base in U.S. dollars to reach $7.7-million (U.S.) as of June 30, 2014, an increase of $1.5-million (U.S.) over the recurring revenue base of $6.2-million (U.S.) as at June 30, 2013 (excluding $1.0-million (U.S.) reported in prior year as recurring revenue from a reseller partnership terminated in June, 2014);
Wanted announced during fiscal 2014 that it will be expanding its sales organization to focus on direct sales efforts in the market for big data analytics in the human capital management sector;
The company, which sells its products through its direct sales force and through resellers, announced the termination of one of its reseller agreements, effective June 22, 2014. The reseller agreement represented revenues of $1,341,098 for fiscal 2014 and $419,812 for the most recent quarter;
In October, 2014, the company deployed an international version of its product platform which includes data and analytics describing the talent marketplace in 20 additional countries. With the addition of these 20 countries, and including the current coverage of the United States and Canada, the company now offers human capital analytics for the 22 largest economies in the world.
Wanted Technologies had a 39-per-cent year-over-year increase in revenues and record net income of $2,634,753, or 10.9 cents per share, for fiscal 2014. The company's annualized recurring revenue base increased 24 per cent during fiscal 2014, reaching $7.7-million (U.S.) as of June 30, 2014. This compares with $6.2-million one year ago excluding $1.0-million (U.S.) reported as recurring revenue in prior year from a reseller partnership terminated in June, 2014.
For the fiscal year ended June 30, 2014, Wanted posted revenues of $10,056,648 compared with $7,231,219 for the fiscal year ended June 30, 2013, an increase of $2,825,429, or 39 per cent. The gain over the prior year mostly results from the company's product diversification and partnership strategy supported by the continued growth and improvement in economic conditions and from deriving during fiscal 2014 a significant non-recurring fee of $976,988 from licensing a component of its historical big data warehouse of more than one billion records. Revenue during fiscal 2014 also included an amount of $1,341,098, or 13 per cent of revenues, derived from a reseller agreement that was terminated on June 22, 2014.
"Our results from fiscal 2014 were the best in the history of the organization," said Bruce Murray, Wanted's president and chief executive officer. "Our strategy of diversifying our business and developing products for high-growth markets is responsible for these results."
During fiscal 2014, one significant big data licence agreement was responsible for non-recurring revenues of $976,988. This significant contract, which was signed during the second quarter, demonstrated how the company's proprietary analytical processes can convert a sizable data warehouse of information into compelling products. In this instance, the company licensed a portion of its database of more than one billion records to enable a financial services client to make more informed analytical decisions about small and medium-sized businesses.
Wanted has been collecting and storing this category of data since 2005. The company mines the historical data for trends and provides current data for real-time analysis.
"We have demonstrated the value of one or our key assets, which is an extremely large database of current and historical data on the employment marketplace," said Mr. Murray. "We build products based on this big data warehouse, which give our clients insights and actionable intelligence to operate their businesses more efficiently."
Excluding both the one-time non-recurring revenue of $976,988 from a specific contract associated with the financial sector and any revenue from the partnership that ended in June, 2014, total revenue grew 20 per cent during fiscal 2014 over the prior year.
Note also that after removing any revenue from the partnership that ended in June, 2014, revenues for fiscal 2014 derived from the combined corporate and staffing sectors increased 65 per cent during fiscal 2014 and represented 26 per cent of total revenues. These two sectors represented 21 per cent of total revenues in the prior year.
"Different clients use our data in diverse ways," Mr. Murray said. "We offer a flexible user interface and multiple delivery options, which give our users many alternatives for applying our data to their business requirements."
In addition to the gains in top-line revenues, the company continued to record strong gains in recurring revenues, EBITDA and net income.
As of June 30, 2014, contracts in hand represented approximately $7.7-million (U.S.) in annualized recurring revenues. This compares with contracts in hand totalling approximately $6.2-million (U.S.) as of June 30, 2013, when the company excludes revenues associated with the reseller partner terminated in June, 2014, representing an increase of 24 per cent. The annualized recurring revenue base represented $8.3-million, a 30-per-cent increase over prior year. At the end of fiscal 2014, 68 per cent of that recurring revenue base was supported by contracts from the staffing, corporate and government sectors. This compares with 63 per cent at the end of the previous fiscal year. |
