Systar (ISIN: FR0000052854-SAR), a leading provider of Operational Intelligence software, today announced that, due to delayed license orders, it will report a decrease in revenues for fiscal year 2012-2013, ending June 30, 2013 and that it will not reach the break-even point. However, this shortfall does not call into question the fundamentals of the company and the quality of its product offering.
License sales of the 4th quarter were particularly impacted by the deferral of a license extension of nearly $ 3 Million by a leading American bank, otherwise a major and loyal Systar customer.
Revenues should stand at approximately € 19 Million, 17 % lower than in the previous fiscal year.
When combined with the investments made for the launch of Tornado, Systar’s new technology platform, the decrease in revenues should entail a current operating loss which could reach € 1.5 Million during the fiscal year.
The go to market of Tornado, Systar’s new technology platform, unfolds according to plan. Each new reference validates Systar’s expectations in terms of shorter sales cycle, faster implementation and easier adoption by customers and partners.
With cash net of financial debts at approximately € 5 Million on June 30, 2013, Systar benefits from a healthy financial structure. However, because of the revenue shortfall and in order to maintain its financial balance, Systar will make some temporary cost adjustments focused mainly on the reduction of subcontracting and general expenses while preserving its ability to invest.
Systar’s objective is to return to profitable growth in the current fiscal year 2013-2014.
Revenues and Income for fiscal year 2012-2013 will be released on July 30, 2013, after market close