FrontRange has reported headline earnings of 0.3 US cents a share for the four months to end-October, a turnaround from the loss of 1.2 US cents for the same period a year before.
These are the first interim results since the company changed its year-end from June to April.
Revenue for the period rose by 10% from $22.13 million to $24.34 million, with licence revenue up 24.4% from $7.52 million to $9.36 million.
FrontRange says stronger licence revenue is the most important measure of a software company`s health. "This is the first time in more than three years that FrontRange has grown its licence revenue compared with the same period in the previous year," says chairman Dana Buys.
A profit of $415 000 before exchange movements, finance income, amortisation and exceptional loss compares with a year-earlier loss of $970 000. A prior-year pre-tax loss of $3.67 million was turned into a profit of $112 000.
After a deferred taxation credit and a taxation charge, FrontRange achieved an attributable profit of $481 000, compared with a prior loss of $3.27 million. Cash utilised by operations amounted to $253 000 and the company had cash of $20.99 million at the end of the period.
FrontRange CEO Michael McCloskey expects the company to benefit from its drive to develop families of solutions for unique segments in the small, medium and distributed enterprise markets.
"We anticipate that the benefits of our product development will be realised in future reporting periods as the latest release of GoldMine and an upgrade to the IP Contact Center product were released only in November."
Other releases this quarter include IT Service Management. Additional Infrastructure Management modules and further enhancements to HEAT and GoldMine follow in the next few months.
"The company is entering a seasonally stronger period of its year and, with the new products rolling out, we believe FrontRange will be able to continue to build sequentially on the revenue momentum achieved over the past five quarters," McCloskey says.
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