(By Anthony Miller – Thursday 21st May 2009 8:30am). Telecoms software player, Intec, confirmed the upbeat tone of its April trading update (see Mixed bag of Easter trading updates) with very pleasing H1 results (see here). Despite a previously announced weakening in its Asia/Pacific markets, where revenues fell 1% in constant currency to £12.1m (15% of total revenues), the 35% ccy growth in Americas to £36.5m (45% of the total) brought overall revenue growth to 15% ccy. EMEA managed a more stately 4% ccy growth to £31.7m. Nonetheless, management noted competition and price pressure in the Americas and signs of customers deferring decisions.Besides the formidable top line growth, Intec increased operating margins to 10% (1H08: 2%, FY08: 9%). However, recurring revenues (Managed Services and Support/Maintenance) declined to 35% of the total (1H08: 39%; FY08: 39%). However, I would expect this proportion to rise again (especially support/maint.) as the new licence revenues come on-stream.
Intec seems to have pulled itself back from the disappointment of a failed bid approach last October (see Intec confirms guidance as offer talks abandoned) and with these results, its shares now stand at double (50p) where they were at the time, not much under the 58p peak when the bid approach was mooted back in May.
It’s good to see a UK-based software company making a mark in the fiercely competitive global telecoms market. More, please.
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