JCurve flags pre-tax loss due to project delays
- 21 February, 2018 11:21
JCurve Solutions (ASX:JCS) has reported a net profit before tax loss of $161,864 for the six months ending 31 December 2017, as a result of delays to the delivery of larger NetSuite and MYOB Advanced projects, which will be ready to go live in the third quarter.
Overall, the Sydney-based cloud technology company closed the half year with net profit after tax (NPAT) of $393,427.
The revenue for the period increased by 11 per cent, to $5 million, as a result of organic growth, the company told shareholders on 21 February.
During the period, the company hired nine new employees in marketing, sales and professional services, which, according to the company, are critical to the longer term financial success of JCurve Solutions.
“Although the overall half year sales and revenue result is at the lower end of our forecast range, with the expanded team now in place we are confident of achieving our full year sales and revenue forecast,” the company told shareholders.
“Our business is growing and sales mix changing as we pick up larger contracts which have a longer lead time to full revenue recognition but provide a very strong foundation for the business.”
The company said the ERP division grew by 21 per cent after recognising $3.5m of revenue, which is a significant increase from the restated $2.9m in 1HY2017.
JCurve adopted new financial reporting standards from July 2016, which resulted in changed accounting policies and adjustments.
Meanwhile, the company's Telecommunications Expense Management (TEMS) saw $1.5 million of revenue, which was an eight per cent decrease on the revenue recognised in the first half of 2017 and also well below the 28 per cent decrease experienced in the 2017 financial year.
The profit before tax and before development costs for the TEMS division was $914,130.