Verimatrix (ISDCF)

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Verimatrix Announces First-Half 2021 Results.

source
https://finance.yahoo.com/news/verimatrix-announces-first-half-2021-154500052.html

Thu, July 29, 2021, 5:45 PM

Mixed second quarter and acceleration of customers’ trends further validates Verimatrix’s decision to accelerate transition to more recurring revenues

2021 revenue target revised.
2024 objective: 70% of recurring revenues.

$52.2 million revenue (up 18% year-on-year).
- $16.6 million revenue from the NFC patent licensing program with major OEMs.

- Core software business down 20% year-on-year, at $35.5 million, with weaker second quarter.

- Non-recurring revenues of licenses and royalties down 19% year-on-year as Covid-19 continues to impact BtoB spending and ability to launch new infrastructure projects.

- Recurring revenues of maintenance and subscription down 20% year-on-year at $12.4 million due to the decrease in new perpetual and term licenses as well as delays in launching services.

- Continuous progress in deploying SaaS and subscription-based offerings with ARR2 of $5.7 million as of June 30, 2021, up 40% year-on-year.

$11.4 million EBITDA3 (22% of revenue)
- Excluding strong contribution of the NFC patent licensing program ($12.2 million in first-half 2021), EBITDA of core software business was negative by $0.9 million vs. +$7.7 million in first-half 2020

$8.1 million net income (IFRS) vs. $1.9 million loss in first-half 2020.

Business outlook
- The continuously challenging context coupled with the noticeable acceleration of client trends both lead to the decision to significantly accelerate Verimatrix’s transition to more recurring offerings and revenue streams. Although short term revenue recognition will continue to be impacted this year and in 2022, this transition will lead to a much improved quality of revenue mix in the mid-term (70% recurring revenues in 2024 compared with 33% today)

- Revised 2021 revenue target: above $90 million (including c. $75 million for the core software business)

For all details please read at:
https://finance.yahoo.com/news/verimatrix-announces-first-half-2021-154500052.html