Increased Cashflow From Operations and ‘Power 100’ 5-Year Plan Launched.
New York, October 14th, 2014 - EasyVista Inc. (www.easyvista.com), a leading provider of IT service and asset management solutions, publicly reports its first half fiscal year 2014 (stated as January – December) results (GAAP). EasyVista increased its turnover to $11.6m in the first six months of fiscal year 2014, significantly up 35% compared to the same period 2013.
Strong Growth and Improvement Gains
EasyVista’s turnover for the first half of FY2014 was a result of consistent sales across the two quarters; Q2 remained strong, up 30% against the same period, last year, to $6.01m, and up over 100% in its core Northern American market.
A key factor during FY2014 is the continued investment in North America and EMEA, which has led to the increased gains aligned to the Company’s long-term strategy. Operationally employee expenses have increased to $1.56m but this has effectively been offset by increased turnover, compared to the first half of 2013. Operating profit has seen a significant improvement compared to the first half FY2013.
“Our success in North America has come from a balance of a great solution and great people with an excellent attitude to customer service. Our True Cloud credentials have really resonated with the marketplace as we deliver one of the best SaaS ITSM solutions,’ observed Andy White, General Manager, Americas, at EasyVista. ‘The level of activity and credibility we have in our space is something that the Analysts Groups (Gartner, Forrester and 451 Group) are featuring positively in their market reports. We have increased brand equity, we have customer references and we have sales momentum.”
The first half results for FY2014 (below) do show a small accounting loss and this is attributable, and effectively offset by, the deferred income generated by the increased number of 3 year SaaS contracts. Consequently, EasyVista generated a positive cash flow from operations of $0.42m over the period, thanks to a very favorable change in working capital. This change is also as a result of the maturing of many SaaS contracts and the release of previously deferred income to recognizable income.
The first half results will allow EasyVista to achieve its FY2014 turnover objective of $26m and launch the ‘Power 100 Plan’ to kick-off in January 2015.
|Purchases and External Charges
|Expenses and Production Costs
The EasyVista ‘Power 100 Plan’
With this in mind and the positive global economic outlook, EasyVista has drawn up an ambitious plan for the next five years. The plan aims to reach $100m in sales by December 2019, with nearly half of the turnover being delivered by the North American sales operation.
The group intends to achieve this strong growth organically by self-financing the resources and investments needed to scale the Company globally.The ‘Power 100’ plan has four cornerstones:
- The accelerating development of the market for SaaS ITSM solutions
- Continued expansion of its North American operations
- The ability to gain market share in Europe through increased sales channels
- The continued high retention rate of the installed base with upgrade revenues from its core solutions (including ev|ServiceApps and ev|Click2Get) to guarantee an increased run-rate
The increase in income will be accompanied by a gradual increase in profitability driven by recurring sales (60%) and the increased margin from SaaS contracts on first renewal.
In conclusion EasyVista will retain and renew existing customers with greater profitability in the short-term and in the mid-term show a double-digit margin consistent with the best editors in the enterprise software industry, successful in new business development.
EasyVista Inc., a leading provider of IT Service and Asset Management software, has more than 25 years of experience as a pure player in the IT Management space. The company has a direct presence around the world with offices in the US, Canada, France, Germany, UK, Italy, Spain and Portugal. EasyVista is quoted on NYSE Alternext exchange (ALEZV).
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