Integrated Research Limited (ASX: IRI) has issued a media release pertaining to the announcement regarding the resignation of its Chief executive officer and the Managing Director, Mr. John Merakovsky. The announcement for the same was made on November 20, 2018, i.e. today. Under this resignation, Mr. Merakovsy will have to serve three months’ notice period. Mr. John Merakovsky resignation is completely based on his family reasons and in lieu of this he will vacate both of his important positions in the company.
The chairman of the company, Mr. Paul while informing about the resignation of Mr. John Merakovsky mentioned special thanks to Mr. Merakovsky for his contribution and the leadership qualities that helped the company to witness growth trajectory over years, and his contribution towards the re-structuring of European operations and important measures and guidance will always hold special position.
Meanwhile the company has recently presented its FY18 financial metrics. The company reported a 4% increment in profit up to $19.2million, with revenues remaining flat at $91.2million. The company’s largest line of business was represented by Unified Communications which reported revenue growth of 7% up to $54.9m. Slight fall in the overall result of UC was noticed on account of Avaya reported under chapter 11 Bankruptcy Protection for half of the financial year, due to which license revenue dropped by 20%. Avaya is now out from chapter 11 Bankruptcy Protection and has recently signed a new reseller agreement with Integrated Research on July 2018. Integrated Research still holds its position and remains the only company having been certified by 3 major UC vendors, Avaya, Cisco and Microsoft providing an optimum market coverage. Integrated Research has signed a global distribution agreement with Cisco, under which Cisco will carry Prognosis UC products in its global price book. The recent agreement between Cisco and Integrated Research has deepen the business relationship between the two companies.
FY18 reported strong growth under UC license sales from Cisco customers and has several sales in pipeline for the future. The cyclical downturn in the renewal of licenses impacted the infrastructure pipeline reporting drop of almost 15% up to $20.8m from the overall revenues. High correlation between the infrastructure revenues and the license renewal cycle provides well established mature business. Drop of approximately 8% up to $8.1million in the payment revenues was reported in FY18, drop was on account of significant drop in the growth of license sales from Asia Pacific and the Americas which was offset by a decline in Europe. Strong global payments sales in pipeline indicates a strong growth to be witnesses in the coming year. Both consulting and the testing solutions posted strong growth during the year. 9% increase up to $7.4m in the consulting fee and 28% increase up to $5.2million from the sales of testing solutions was reported during the year. As on June 30, 2018 total cash was reported at $11.2million with no debt.
Well-crafted long-term strategy with the expansion of sales and service capabilities into new geographies and new product creation will open new avenues for the future growth of the company. After the announcement regarding the resignation of Mr. John Merakovsky, the scrip dropped down by 10.2% as on November 20, 2018 and is currently trading at the levels of $2.22.
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