The Integrated Research Limited (ASX: IRI) share price will be on watch for the remainder of the day after the company announced the renewal and extension of a major client software agreement.
At the time of writing, Integrated Research shares were down by 1.8% on a day which has seen the S&P/ASX 200 Index (ASX: XJO) fall sharply so far by 3.2%.
Integrated Research is a provider of performance management software for critical IT infrastructure, payments and unified communications.
Over the past 12 months, the Integrated Research share price has risen by 12% and while the ASX 200 Index has lost over 20% in the current crash, Integrated Research has been much less impacted, falling by only 6%.
Details of contract renewal with JP Morgan Chase
At around midday today, Integrated Research announced it has renewed and extended its software license agreement with JP Morgan Chase for a very sizeable total contract value of US$10 million. The tech provider added that the contract has been extended for a 5-year term and the terms of the contract encompass products in Integrated Research's Payments and Infrastructure portfolio.
For the past 25 years, JP Morgan Chase has been using Integrated Research's IR Prognosis solution in order to tap into real-time payment transaction data to support its core business decisions.
Integrated Research commented that one of the key reasons behind JP Morgan's decision to renew were the recent innovations and enhancements that Integrated Research made to its current 11.7 version IR Prognosis product.
Commenting on today's announcement, John Ruthven, Chief Executive Officer of Integrated Research said, "This contract is further validation of the mission critical nature of IR solutions with major enterprises."
Recap of recent financial result announcement
As announced last month, Integrated Research achieved a 1% increase in profit after tax to $11.8 million for its H1 FY2020 results, when compared to the prior corresponding period. Meanwhile, overall license sales increased by 7% to $33.4 million and total revenue increased by 6% to $53.2 million. However, its payments revenue declined by 14% to $7.8 million.
The company declared a fully franked interim dividend of 3.5 cents per share and noted that it has maintained a strong financial position with total cash of $7.6 million at 31 December 2019.
