Menu
QMASTOR expects FY11 ebitda of $2.8m

QMASTOR expects FY11 ebitda of $2.8m

Industrial software developer QMASTOR (ASX:QML) expects to report a nearly 600% increase in FY11 ebitda, on record revenue from the year.

The company is forecasting ebitda of $2.8 million for the financial year just passed, which would be a 592% improvement on FY10.

Revenue has been estimated at $12.8 million – a growth rate of 72% - with contributions from international markets growing from 18% to 37% of total revenue.

Managing director Trent Bagnall said the expected result vindicates the company's international growth strategy, adopted in 2009.

He said the company opened a South African office in 2008, a North American office a year later, and that its South American unit, established in 2010, should contribute revenues in 1H12.

The $5 million acquisition of Canadian mining software developer Algoqys, completed in December, also contributed to the expected growth.

Algosys exceeded profit expectations for its seven months of contributions by around 30%.

QMASTOR maintained its target of $20 million revenue in FY12, on expectations that a full-year's contribution from Algosys and the South American office will boost its bottom line.

The company in June received a $0.23 per share takeover offer from US-based Triple Point Technology that effectively values the company at $19.3 million.

On Tuesday, QMASTOR said it would advise shareholders on its recommendation over the offer shortly, but noted that shareholders holding over 10% of the company have already rejected the offer. The takeover offer would require a 90% acceptance to go forward.

QMASTOR separately announced it had won software licensing and maintenance contracts with Canadian export coal terminal operator Westshore Terminals, and another with Vale for a coal project in Mozambique.

QML shares grew 11.11% in Tuesday's trading to $0.250.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags softwareexpansionQMASTORAlgosysGuidanceASX:QMLTrent Bagnall

More about QmastorTechnology

Show Comments
[]