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.
