Wynyard Group misses revenue forecasts

Craig Richardson, chief executive of the Wynyard Group. Photo / Greg Bowker

Wynyard Group, the security software firm, said 2014 annual revenue lagged its forecast as negotiations on a few key contracts dragged into the next financial year.

Revenue was $25.7 million in the year ended Dec. 31, ahead of the $21.7 million a year earlier but lagging its forecast for $29 million to $32 million, the Auckland-based company said in a statement. The latest figures are unaudited and the final results will be detailed Feb. 25, it said.

Wynyard, which decided last year to focus on winning larger government contracts, had warned that it might miss its forecast sales if some of its big contract negotiations extended into 2015, meaning the revenue would be recognised after the 2014 balance date.

The lower-than-forecast 2014 revenue "is represented by a very small number of large contracts in negotiation at year end that Wynyard now expects to sign in the first part of 2015, together with contracted revenue for installations in progress that will be recognised on completion during during FY15," said chief executive Craig Richardson.

Richardson said key indicators of momentum and sustainable revenue growth were strong.
Annual software licence revenue increased 60 percent to $8.1 million, with recurring revenue of $13.7 million making up 53 percent of total revenue.

"Growth was primarily driven by our mid-year strategic decision to focus on larger contracts for our advanced crime analytics platform," Richardson said.

The company didn't provide any details of its 2014 earnings.

In August, the company reported a first-half loss of $10.2 million compared to a loss of $3.1 million a year earlier, as it spent more on its expansion plans.

Wynyard was expected to post a 2014 annual loss of $21.3 million on revenue of $28.2 million, according to a Reuters poll of analysts.

The company's shares last traded at $2.20 and have gained 13 percent so far this year.