Real-time banking deals drive Gresham revenue

Source: Gresham Computing

Gresham Computing plc, the specialist provider of software based solutions that enable customers to achieve real-time financial certainty in transaction and cash management, reports its Interim Management Statement for the period 1 January 2012 to 30 April 2012.

Highlights for Q1 2012

· Revenues up 28% in quarter to £3.3m (Q1 2011: £2.5m);

· Adjusted EBITDA profit £0.5m in quarter (Q1 2011: £0.4m);

· Profit before tax £0.4m in quarter (Q1 2011: £0.3m);

· Cash at 31 March 2012 £3.1m (31 March 2011: £3.3m);

· Confirmed order book and pipeline remains strong; and

· Management confident about outlook.

Comments on trading and outlook

Revenue for the first quarter of 2012 was up 28% on the prior period, to £3.3m with all the growth coming from Real-Time Financial Solutions, which represents 77% of our total revenues, up from 69% in 2011. License revenues grew 91% compared to prior period driven by a £0.5m license (50% gross margin) associated with the deployment of our cash and transaction management solution in Asia Pacific, whilst annuity revenues grew 14%.

Adjusted EBITDA for the first three months of 2012 was £0.5m (2011: £0.4m) and profit before tax was £0.4m (2011: £0.3m). During the quarter, we successfully completed the restructuring of two RTFS divisions, reducing our overall future cost base, allowing redeployment of resources to other areas and increasing focus.

We are making excellent progress with the development of Clareti Transaction Control and expect to report further progress with that product in 2012. I am pleased to report that, just nine months from July 2011 signature, the Clareti Virtual Bank Accounts and Clareti Transaction Control solutions for a major Asia Pacific bank went live on time and to budget. The migration of existing customers to the new platform is going to plan and we are working to on-board new target customers.

In the period, we went live with a major Clareti Banking and Clareti Lending customer in the Caribbean, adding to annuity revenues going forward.

In our Software Storage business, our latest, powerful EDT v10 software, which now supports nearly all types of physical and virtual tape, allowed us to expand our license footprint at a majore footprint at a major US telecommunications company, delivering an 8x reduction in administration and configuration time.

Our financial position, confirmed order book and pipeline remain strong and we are confident about our outlook for 2012 and beyond.

Chris Errington, CEO of Gresham, commented:

"We continue to make good progress in building our Real-Time Financial Solutions business. In the period, we successfully completed the deployment of our cash and transaction management solutions at a major bank, underlining our ability to deliver complex technology projects on time and to budget."

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