ASX-listed Kiwi tech Datasquirt has cut its cash burn rate dramatically, with growing sales and a tight focus on costs.
According to reports lodged with the Australian Securities Exchange, cash burn has fallen from A$865,000 (NZ$1.1 million) for the quarter ended December 2008 to just $32,000 for the March quarter 2009.
According to that latest report, Datasquirt still has just over $2 million in cash reserves.
Datasquirt develops non-voice channel contact management software called Contact, which adds, for example, text messaging, email and web chat to existing call centre environments.
Datasquirt’s CEO Aaron Ridgway says the company has been working hard to ensure it is well positioned in a difficult market where second-round funding is not easy to find.
“We’re in good shape,” he says.
Ridgway says future revenues are hard to predict because some “spikey” deals are involved, but Datasquirt’s strategy is to build regular annuity revenues.
He also hints that further channel announcements can be expected. In November, the company inked a distribution deal with a fellow Kiwi, unified communications software developer Zeacom.
Between the two latest quarters reported, Datasquirt cut staffing costs from $649,000 to $437,000 and boosted revenues from $352,000 to $649,000. However, some grant money from New Zealand Trade and Enterprise is included in its latest revenue figure.
When the company listed on the Australian stock exchange in September 2007, the offer price was $0.90, but the share price took a dive since the end of May 2008. After a dip in March, shares were back at around $0.85 in May. The price then started its descent to $0.12 in August. Last week it was at $0.13.