Quarter 1 Results – FY 2016

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  • Q1 new sales invoiced $3.4 million
  • Q1 Income recognised $4.54 million
  • Q1 Management Profit $1.94 million
  • Q1 Unearned Income account net increase of $0.6 million
  • eMite Q1 result is running ahead of expectations
  • SNARE Q1 results ahead of same period last year

 

Prophecy is pleased to report an excellent start to FY16 with a buoyant set of Q1 numbers. As previously reported, new sales invoiced came in at a very healthy $3.4 million, to continue the sales momentum that had been established during FY15. Considering that Q1 covers the Northern Hemisphere summer holiday season where business can run more slowly, this has been a very good result.

Total Income recognised for the group for Q1 came in at $4.54m, which again is an excellent start to FY16. Income for the same period last year came in at $1.41 million and thus we have been able to achieve very solid growth compared to last year. The Income number includes both the new sales numbers and invoicing for existing recurring base revenues. Not all the invoiced amounts are recognised as income immediately as a portion is allocated to unearned income and then brought to account against income over 12 months.

The management accounts for Q1 show a profit of $1.94 million which again is an excellent result for the first period. The equivalent number for last year was a profit of $0.25 million. Our investment in new resources is balanced against new sales growth which enables a healthy profit to be maintained along with our growth.

As a result of our increased invoicing the Unearned Income account for Q1 came in at an increase of $0.6 million.

The acquired eMite business performed above expectations for Q1 to bring in excellent sales numbers backed up by good revenue and profit numbers. The acquisition has progressed smoothly with a number of great new sales being completed to further enhance an excellent customer list. The challenge now is to continue to build on this excellent start to produce the results expected for the half year.

SNARE sales have continued to impress with very good numbers achieved for Q1. It’s always a challenge to come off a very good Q4 sales period to complete FY15 and then continue the momentum with excellent sales numbers for the next Q1 which includes the northern holiday season. Q2 through to Q4 last year provided tremendous growth for SNARE and we now have the challenge of expanding on that achievement as we head towards our Q2 targets to make the numbers for the half year.

Overall, across our two key business units, we have made an excellent start to our FY16 targets.

 

Prophecy Revenue Makeup

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Prophecy has two main sources of revenue to record and report annually.

A portion of revenues each year are referred to as “base recurring revenue” which consist of invoicing to existing customers for ongoing services previously contracted and extending over multiple years in most cases. In addition, Prophecy generates additional revenues each year from “new sales invoiced”, mainly to new customers and in some instances to provide extended services to existing customers during the year. The sum of the two revenue types above makes up the total revenue reported by Prophecy for the year.

Today’s announcement reported on the Q1 “new sales invoiced” number which came in at $3.4m. By comparison, the FY15 full year “new sales invoiced” number was $5.54m, so this represents a significant increase over last year. The increase is the result of increased SNARE sales compared to Q1 last year plus the addition of eMite new sales since the acquisition.

In addition to FY16  Q1 new sales, Prophecy has invoiced base recurring business as expected for FY16 so far. Only the new sales number is available at this time for reporting as per the announcement, but the full revenue for Q1 including the base recurring revenue will be available to report by mid October.

With the great sales start to the year, a record Q1 full revenue number is expected to be reported.

Sales Momentum Maintained

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  • Q1 new sales invoiced for the Prophecy Group have come in at $3.4 million
  • Full year new sales for FY15 for the group were $5.54 million
  • Considerable Q1 growth for both SNARE and eMite products
  • Early new sales translates to earlier investment in additional resources
  • Record Q1 new sales achieved for both SNARE and eMite products
  • Excellent new name reference sites added
  • Very strong start to eMite new sales
  • Record Q1 revenue number expected on the back of the sales momentum

Prophecy International achieved new invoiced sales totalling $5.54 million in the full 2014-2015 financial year to begin a new era of growth for the company. The sales growth momentum achieved in FY15 has continued into FY16 with group Q1 new invoiced sales coming in at $3.4 million, providing the company with a very pleasing result to begin the new year.

Compared to the same quarter last year, new sales for both SNARE and the eMite products have grown considerably. The momentum gained from our FY15 sales push has been maintained and the sales strategies put in place a year ago continue to produce the improved results expected. SNARE new sales are running ahead of eMite new sales YTD as planned in the annual budgets. eMite products have the potential to outperform and the internal challenge is on for eMite sales to exceed SNARE sales by the full financial year end.                                                                        …../2

Good early sales numbers auger well for the business, as the locked in revenue achieved enables management to reinvest additional resources into the growth of each key business unit at an earlier stage. That early investment in turn provides a boost to the potential achievement for the full financial year.

The SNARE business unit achieved very high sales numbers in Q4 of FY15 and it’s very pleasing to see momentum maintained to produce a record new sales number for Q1 SNARE sales. An impressive list of new names has been added during the course of the quarter and these sales demonstrate the market acceptance that SNARE has been able to achieve over the last 12 months of enhanced sales activity. Each new name further adds to the prestigious list of SNARE users, thus providing great references for future sales.

eMite sales have taken off very strongly since our newest acquisition and produced a Q1 result that is well ahead of budget. This has been a fantastic result, bearing in mind that an integration process has taken place alongside the normal conduct of business. Some excellent new names have been added to the client list and the sales pipeline has been expanded with very promising opportunities. Integration work has begun that will enable the eMite products to work with SNARE and further enhance our abilities to service the medium to large IT departments worldwide with our expanded product set.

The excellent new sales results for Q1 will flow through to produce a record Q1 revenue number once the financials are tabulated for the quarter. All in all it’s been an outstanding start to the FY16 year.

 

Investor Presentation, September 2015

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Prophecy is pleased to share this presentation with all our investors.

Investor Presentation

Sales Momentum Continues to Grow

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New sales closed since the start of this Financial year by Prophecy group companies, have already hit $2 million. This has been an excellent start to the new year coming on the back of great SNARE sales numbers to complete FY15.

  • Prophecy new sales since July 1st hit $2 million
  • Q1 sales running ahead of target
  • eMite new sales have made an excellent start
  • SNARE new sales again have outperformed previous periods
  • Dell sales have started to flow through

New sales closed since the start of this Financial year by Prophecy group companies, have already hit $2 million. This has been an excellent start to the new year coming on the back of great SNARE sales numbers to complete FY15.

Our management focus this year is firmly on continued sales growth for the business, including the newly acquired eMite product set.  Both SNARE new sales and eMite new sales have performed very well in the opening weeks of FY16 to hit a total of $2m YTD in rapid time. This augurs very well for a buoyant Q1 sales result to get the year started.

eMite has performed as expected with a very strong sales start, further building its reputation with the larger end of the market. Forecasts for Q1 are very good at this point and we have made an excellent start with this new acquisition.

SNARE has outperformed in new sales compared to the same period last year and has had a very pleasing start to the year considering that it closed out a very large total for the month of June and Q4 for a very strong FY15.  Sales from the Dell partnership have now started and our forecast is for this sector to make a significant contribution to our result for this year.

Acquisition Settled

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Prophecy is pleased to announce that all conditions relating to the acquisition of eMite Pty Ltd have now been met and settlement has been completed.

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FY15 Expected Results

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As already reported, Prophecy has had a spectacular year with its new sales growth for the SNARE software set. This growth has continued through June and has delivered record results through to the end of our financial year.

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eMite Acquisition Earnings Update July 2015

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eMite provides ‘Business Intelligence Analytics software’ to enterprise customers. Its products enable all businesses to make the right real time decisions by providing intuitive representation of real time data from any system in their company based on an easy to deploy, simply scalable BI system with top class analytics in a user adjustable interface.

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Acquisition and Placement

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Prophecy International Holdings Limited is pleased to announce that it has completed a sale and purchase agreement to acquire 100% of Australian software company eMite Pty Ltd. This transaction is effective as of July 1st 2015.

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Snare Sales Growth Hits 117%

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New sales of SNARE software products have continued to surge during the month of May. The month closed out with a very impressive sales total that has made May the second best sales month so far this financial year.

  • SNARE sales growth now at 117% YTD to end of May
  • May comes in with second best sales month of the year
  • Sales growth rate continues to improve month by month
  • Upgrades are now coming from our Open Source base
  • June sales forecast to be a record along with the full year
  • Denver office resources continue to expand

New sales of SNARE software products have continued to surge during the month of May. The month closed out with a very impressive sales total that has made May the second best sales month so far this financial year.

As a result, the YTD new sales total for SNARE has grown 117% compared to the same period last year. This is calculated on a fixed foreign exchange rate basis so that sales from one year to the next can be measured without any effect from exchange gains or losses. This growth rate in sales has continued to improve from late last year through to the current month and is directly attributable to the professional processes employed by the team in handling new leads.

A new trend has emerged when recent sales have been analysed. There has been a notable shift in perception by our users and those that have made use of our Open Source solution in the past are starting to understand that to gain full security protection, they need to upgrade to our full function Enterprise software solutions. These upgrades are expected to provide an ongoing increased stream of new licences that will support the sales growth rate being achieved to date.

The sales pipeline for the month of June is the best that it has ever been and this heralds the opportunity for a record sales total for the month of June and the full year. The indications are that the growth will continue through June and provide a record growth result for the full year.

Our Denver sales office has continued to expand to handle this growth and additional resources join us there in early June to help us manage this growth.