Software developer Integrated Research Limited (ASX: IRI) has built an impressive global customer base for its software products which provide a range of critical monitoring applications for infrastructure and unified communication assets.

With the share price following the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) lower over the past six months, the group’s just released results are a timely read.

Here are the key points from the interim report:

  • Revenues increased 18% to $39.4 million (constant currency growth of 1%)
  • New License sales were down 1% to 19.5% (constant currency were down 15%)
  • Net profit after tax fell 18% to $6.2 million
  • Earnings per share slid to 3.65 cents from 4.46 cents in the prior corresponding period (pcp)
  • A partially franked dividend of 3 cents per share (3.5 cents in pcp) has been declared. The shares will trade ex-dividend on March 8 with a payment date of April 20
  • Return on equity slipped to 17% from 22%

No guidance given

With the share price dropping 6% in the opening minutes of trade on Friday it’s fair to assume that investors are underwhelmed by Integrated Research’s interim results; particularly on a constant currency basis.

The lack of clarity on what investors should expect over the remainder of the financial year won’t have helped either.

Integrated Research is arguably a high-quality business operating in an attractive market niche, however like peers such as Hansen Technologies Limited (ASX: HSN), GBST Holdings Limited (ASX: GBT) and Technology One Limited (ASX: TNE), the company needs to constantly impress to retain its lofty market valuation.

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Motley Fool contributor Tim McArthur has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.