JSE-listed FrontRange grew its attributable profit to $6.78 million for the 10 months to 30 April, from $482 000 for the same period a year earlier.
Revenue for the period rose by 12.3% from $59.37 million to $66.66 million. CEO Michael McCloskey says continued sales of the GoldMine and Heat products, combined with significant wins in the new IT Service Management and IP Contact Centre products, saw licence revenue grow by 25% to $27.65 million.
"This is a compelling overall performance," says McCloskey. FrontRange has produced six consecutive quarters of growth in licences and total revenue, he adds.
"Particularly encouraging was the 25% overall growth in licence revenue in a global environment where few software companies in our space are managing more than 10%."
Recurring maintenance revenue grew by 7% to $32.6 million.
"While services revenue declined by 7% to $6.4 million, it accelerated in the final quarter as the new products rolled out, with the April 2005 quarter showing growth of 17% when compared to the comparable quarter in the prior year," says McCloskey.
The performance of the US operation was strong, which McCloskey says more than compensated for disappointing results in Europe, where remedial action is expected to improve results in the coming year.
The balance sheet is carrying no long-term debt and current assets at the end of the period exceeded current liabilities by a factor of 1.24 to one.
McCloskey says the company is making progress in concluding bigger single deals, with 13 deals of more than $100 000 each concluded in the April quarter.
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