Delayed deals see Wynyard Group miss annual forecast

“It’s important we make strategic decisions that will continue to increase revenue per user and maximise the total contract value of our solutions."

Wynyard Group has missed its annual forecast due key negotiations overlapping into 2015, according to the company's unaudited revenue for the year ended 31 December 2014.

The advanced crime analytics software and services provider reports unaudited FY14 revenue of $25.7 million up from $21.7 million last year - this includes 2H14 revenue of $15.6 million, up 54% on the previous half, and a record $9.0 million final quarter.

"The key indicators of momentum and sustainable revenue growth are very strong," says Craig Richardson, CEO, Wynyard Group.

"Software licence revenue increased 60% in FY14 to $8.1 million and recurring revenue of $13.7 million remained high at 53% of total revenue.

"Growth was primarily driven by our mid-year strategic decision to focus on larger contracts for our advanced crime analytics platform."

In mid-2014, Wynyard advised its decision to focus on larger government contracts would introduce contract execution timing and revenue recognition risks at year end.

The gap between reported FY14 revenue and market guidance of approximately $29m, is represented by a very small number of large contracts in negotiation at year end that Wynyard now expects to sign in the first part of 2015, together with contracted revenue for installations in progress that will be recognised on completion during FY15.

“As we grow Wynyard into a large and profitable global company, it’s important we make strategic decisions that will continue to increase revenue per user and maximise the total contract value of our solutions," Richardson adds.

"In 2H14 Wynyard set new records for both these growth measures and secured significant new contracts in the law enforcement and national security sectors in new regions."

The company’s 2014 full year results are due to be announced on Wednesday 25 February, and its annual report will be available to shareholders by the end of March.

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