Half-year revenues have fallen 19 percent to $4.9 million for Sydney-based JCurve Solutions as the company posted a net loss of $2.8 million.
In a statement to the ASX, the company said the decline was due to its underperforming TEMS (Telecom Expense Management) business, as its continues to transition to its software-as-a-service business unit, which is based around Netsuite and grew at 42 percent to $2.7 million.
“In addition to the expected business mix change, the prior corresponding period included $653,000 of now discontinued South African telco revenue," JCurve told the ASX.
“The continuing headwinds impacting the TEMS business resulted in the booking of impairments totalling $3 million. The intangible assets associated with the TEMS business are now completely written down. Excluding impairments, JCurve Solutions reported a net profit after tax of $200,000, an improvement of $800,000 on the prior corresponding period,” the company stated.
JCurve chief executive Stephen Canning said: “By leveraging our core strengths and capabilities, we will continue to grow the JCurve business by focusing on customers, building a large and sustainable base of monthly recurring revenue and maximising the value of the TEMS business through productivity. We are investing in our people, our brand, and our customers for long-term growth."
Despite the continued weakness from the TEMS business, Canning was optimistic that the company’s 2016 outlook would remain strong and was poised for a double-digit growth.