JSE-listed Spescom's US subsidiary, Spescom Software, is improving its fortunes, with a first quarter net loss of $62 000 a marked improvement from the year-earlier loss of $1.9 million.
Spescom Software, which provides integrated document, configuration and records management solutions, increased revenue 33% to $2.3 million in the first quarter to 31 December.
The improvement was mainly the result of licence revenue climbing 190% to $921 000. Services revenue was flat at $1.4 million.
"Licence revenue growth is the key to growing the profitability of the business," says Spescom Software CEO Carl Mostert.
"Our gross profit margin increased to 63% from 28% in the comparable quarter a year ago and 48% sequentially.
"Moreover, each additional licence sold generates future revenue from annual maintenance contracts."
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose to $186 000 from a loss of $1.6 million a year before.
"Given the success to date with our turnaround and the momentum we created with major customers such as Network Rail, Sempra Energy, Lloyd's Register of Shipping and Bechtel, we are confident that we will meet our 2003 target of between $9 million and $10 million in revenue and EBITDA of between $800 000 and $1 million," Mostert says.
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