Defenx PLC (AIM:DFX), the mobile security software solutions company, announces its unaudited interim results for the six months ended 30 June 2016.
Financial Highlights
· Revenue up 73% to €2.32m (1H15: €1.34m) reflecting the positive impact of new product launches and channel partner wins
· Mobile platform focus continues with 69% of revenues derived from software for mobile devices
· Strong control of overheads with operating expenses (excluding marketing contributions) of €0.71m (1H15: €0.39m) 39% below 2H15 predominantly due to lower staff and administrative costs
· EBITDA before exceptional costs of €0.11m (1H15: €0.29m) reflects the front-loading of full year marketing contributions into the first half of the year to drive sales that are seasonally weighted into the second half of the year
· The unaudited interim financial results are in line with management expectations.
Operating Highlights
· Defenx has now sold over 3.8 million licences with over 1 million active licensed users at 30 June 2016
· Significant progress made since AIM IPO in December 2015 launching new products, including Defenx Mobile Security Suite for Windows 10 Phone and Defenx Cloud Backup for mobile, PC and NAS drives
· Eight new channel partners signed up, more than doubling the number at IPO, significantly extending reach across the UK, Continental Europe and the Middle East.
Post Period End
· On 2 August 2016, Defenx acquired 95.2% of Memopal, a cloud backup and sync company. The acquisition secures Memopal’s advanced technology, adding cloud backup & sync to the Group’s existing product portfolio, key channel partners as well as cross selling opportunities
· New debt facilities of, in aggregate, €1.20m provide additional working capital and allow the Group to narrow the working capital gap between the extended debtor terms customary in its overseas markets and the shorter credit terms in the UK.
Commenting on the results, Andrea Stecconi, Chief Executive Officer, said: “We are pleased with the strong progress in the first half of 2016 and have delivered against our stated strategy with the addition of new channel partners and products. The acquisition of Memopal in August brings a significant opportunity and we look forward to integrating it fully into our existing business to improve and extend our offering. Based on our performance to date and strong confirmed order book, we are confident of continuing to deliver significant growth in revenues and profits this year in line with market expectations.”