ASX-listed software company MSL Solutions is conducting a review into its operations following a revenue fall.
The Brisbane-headquartered sports and entertainment specialist revealed its total unaudited revenue hit $27.8 million in the financial year ending 30 June 2019, a 17 per cent dip from the previous year.
In an update to shareholders, the software-as-a-service provider called the result “disappointing”, saying it fell short of expectations.
According to the update, the board of MSL embarked on a “significant strategic review” of the company in the fourth quarter, which remains ongoing.
Pinning the dip on $2.7million worth of sales orders contracted, but not recognised as revenue in the period, MSL’s EBITDA entered a loss of $0.4 million, having posted a profit of $4.2 million profit in FY18.
The company, which supplies analytics and workforce software to the sports, leisure and hospitality sectors, added that it also had a “drift” of sales orders with a total contract value of approximately $5.0 million past 30 June 2019.
In addition, MSL stated it had spent $2.2 million more on research and development this year, totalling $6.1 million. Of this, a third is yet to be recognised in “against the future economic benefit from the investment”.
However, the company’s annual recurring revenue rose $16.8 million last year to $17.9 million, with increased seen across both support and SaaS revenue.