Redknee Solutions revenue dips amid slow customer purchasing

Staff writer
18 May 2016
00:00

Redknee Solutions saw its revenue go down to $39.8 million in its fiscal second quarter ended March 31, from $53.7 million in the same year-ago quarter.

The decrease in revenue compared to the prior year period resulted mainly from the impact of lower license revenue due to delays in customer purchasing decisions and foreign exchange variation.

Order backlog increased 12% to $175.5 million from $157.2 million in the same year-ago quarter, and sequentially order backlog increased 5% from $166.8 million reported last quarter.

Net loss totaled $35.6 million, or $0.33 loss per basic and diluted share compared to a net loss of $2 million, or $0.02 loss per basic and diluted share, in the same year-ago quarter. Net loss included $24.5 million of restructuring costs, with the final restructuring costs expected to be $26 to 28 million.

The company expects the restructuring will reduce annual overall expenses by up to $25 million by fiscal 2017, with partial savings occurring through the last quarter of fiscal 2016.

"We are seeing our business returning to a strong orders momentum," said Lucas Skoczkowski, president and CEO of Redknee Solutions. "As per our expectation subsequent to the quarter end, we have closed over $35 million of orders, including our most recent three-year $20-plus million software and services expansion contract, further strengthening our order backlog, while supporting growth in revenues in the coming quarters."

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