WANdisco on the up as it achieves record bookings in fourth quarter
Updated : 11:14
Shares soared in WANdisco as the big data software firm announced it made record bookings in the fourth quarter due to new channel partnerships with Amazon, IBM and Oracle, while it operated at near cash flow break-even.
The AIM-listed company achieved record bookings in the quarter ended 31 December, as it surged jumped 97% to $6.1m, compared to last year, while total bookings for the year leapt 72% to $15.5m.
Additionally, the company operated at near cash flow break-even during the quarter due to reductions in the cost base, which coupled with improved booking performance and a reduced cash burn rate to $200,000, it ended the year with no net debt.
At the end of the December, the company had $7.6m in cash, up from $1.1m last year, and made no borrowings on its revolving credit facility.
During the calendar year, IBM OEM agreed for WANdisco Fusion to be sold as IBM Big Replicate and gained a contract with IBM for a major automotive multinational worth about $1m in royalties to WANdisco.
It secured a contract for WANdisco Fusion, its software product, as part of Dubai's smart city project, a $1.5m order from a major US bank through an Oracle reseller, and received a $775,000 order for Subversion, the company’s application lifecycle management product, from a major European Bank.
The company also secured a contract for its Amazon S3 cloud solution with online gaming company Playtika.
David Richards, chief executive and interim chairman, said: "The key focus for 2016 was to establish our partner network and during the year we successfully secured our IBM OEM agreement, as well as two significant channel partnerships with Oracle and Amazon. These partnerships are both strategically important to WANdisco as well as already significantly contributing to our bookings performance.
He added: "We have begun 2017 with a strong new business pipeline and a significantly reduced cost base, which together, will further our progress towards profitability."
Shares in WANdisco were were up 18.3% to 265p at 1029 GMT.