Cirata secures $2m contract, withdraws FY24 bookings guidance

Software firm Cirata has secured a roughly $2.0m contract with tech giant IBM to support a top three US bank.

Cirata, formerly known as Wandisco, said on Monday that the new live data migrator contract represented the largest IBM OEM Big Replicate Implementation to date.

The AIM-listed group also noted that its future road map was "closely aligned" with the American bank as it represents "the leading edge" of data transformation within the enterprise.

Elsewhere, Cirata withdrew its FY24 bookings guidance, partly due to certain major customers' decision to opt for one-year terms as opposed to multi-year terms and "some movement" of pipeline opportunities and bookings from Q424 into H125, which caused a "sufficiently wide variation" to expected outcomes.

Chief executive Stephen Kelly said: "While today's announcement is a clear signal of our technology's capabilities and our own ability to build commercial trust, it is also a reminder that large contracts can make our business lumpy and that forecasting has indeed proved challenging.

"In parallel with the announcement of this new contract, Cirata withdraws its FY24 bookings guidance. This is mainly due to the LDM contract and one other contract being of a one-year rather than a multi-year term and the movement of pipeline opportunities and bookings expectations from Q4 FY24 to H1 FY25, which has caused a sufficiently wide variation to expected outcomes for bookings."

As of 0945 GMT, Cirata shares were up 8.16% at 26.50p.

Reporting by Iain Gilbert at Sharecast.com