Here’s why Prophecy International Holdings Limited soared 17%

Credit: Mervi Eskelinen

The Prophecy International Holdings Limited (ASX: PRO) share price flew 17% higher this morning after the junior technology company announced a promising half-year update.

In the six months to 31 December 2015, Prophecy, a $120 million company engaged in providing monitoring and analysis software for critical business applications, announced new sales of $6.15 million. By comparison, last year’s first-half comparable result was $1.68 million and the full-year comparable figure came in at $5.54 million.

SNARE, the company’s flagship product, saw sales grow 120% year-over-year, with solid momentum continuing into the third quarter.

The SNARE new sales pipeline for Q3 already looks very pleasing even though the quarter has only just opened,” the company said.

The company’s recent acquisition of eMite, a service intelligence platform solution, also appears to be paying off. “eMite total invoicing, which includes base business renewals as well as new sales, came in at $3.23 million for the half, showing growth of 58% compared to the same period last year.”

Prophecy said its current cash position was $6.4 million, comparing to $5.6 million at 30 June 2015.

With a generous dividend, strong growth and a healthy net cash position, Prophecy appears worthy of a spot on savvy investors’ watchlists.

Another tech stock going gangbusters

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Motley Fool writer/analyst Owen Raszkiewicz has no position in any stocks mentioned.

Owen welcomes your feedback on Google plus (see below), LinkedIn or you can follow him on Twitter @ASXinvest.

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 owns shares of Prophecy International Holdings Ltd.. 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.

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