Reduced operating costs and $300,000 from the Australian government’s JobKeeper subsidy has softened the financial impact for JCurve Solutions for the first half of FY21 preliminary unaudited results, ending December 31.
The publicly listed Oracle NetSuite enterprise resource planning (ERP) services provider told shareholders that its earnings and net profit before tax, as well as net profit after tax moved positively against the results achieved in the comparative half year FY20 period.
This was due to a focus on reducing operating costs and receiving $300,000 from the Australian government’s JobKeeper subsidy “assisting to more than offset a reduction in sales income during the COVID-19 pandemic,” JCurve told shareholders.
For the first half of FY21, JCurve’s sales income decreased from $6 million in the same period last year, to $5.1 million, while revenue also took a hit from $5.7 million to $4.9 million.
Earnings before tax saw a slight uptick from $200,000 to $400,000 while net profit improved $300,000 in the red in 1HFY20 to $100,000 in the red. Closing cash balance was $4.5 million.
It was noted the reported sales and revenue income result excludes committed future income from a milestone ERP contract won in November, which is expected to add a further $1.2 million of sales/revenue over the customer contract period.
JCurve did hint it was in the market for acquisition opportunities with a laser focus on NetSuite partners across Australia, New Zealand and Asia that can deliver immediate material revenue and earnings growth.
During the first half, JCurve said it was successful in retaining 93 per cent of its existing Australian renewal contract portfolio and expanded its sales territory to include the Philippines, where its “pipeline in the region was growing encouragingly”.
The company said it was also in the midst of revising its Riyo platform brand along with a new go-to-market strategy and revenue model, increased functionality and an expansion of its team to focus on medium and enterprise businesses.
A platform targeting the small business and sole trader market will also be released to the market.