Internet domain registrar Melbourne IT announced net positive cash flow of $1.9 million for the September quarter, compared with $900,000 for the first half of the year.
It's not all doom and gloom in the Internet name game as local domain names registration increased 16 per cent, which impacted positively on Melbourne IT's results. Meanwhile, global domain registrations through the registrar slipped around 8 per cent since the June quarter, from 260,700 domain registrations to 238,800.
In a statement to the ASX, Adrian Kloeden, CEO of Melbourne IT, said the operating cash figure was the highest reported over the past 12 months and substantially more than the first two quarters combined, and attributed the result to the increase in local registrations.
By the end of the September quarter the company had $15.1 million cash on its balance sheet and no debt, Kloeden said.
Melbourne IT is pleased with the level of business for the registration of ".biz" names, which commenced on October 1 through its joint-venture company, NeuLevel.
The registration of .biz names ran into trouble in August when legal action was brought against NeuLevel in California on the charge that it was an illegal lottery. Kloeden said fewer than 20 per cent of .biz applications, some 58,000, have been affected by the legal action.
"There is a misconception in the market that the legal action is severely hampering the registration of .biz names. This is not correct and we estimate that the contested names account for less than 20 per cent of .biz applications," said Kloeden.