Why ReadyTech (ASX:RDY) shares closed flat today?

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Why ReadyTech (ASX:RDY) shares closed flat today?

ASX, RDY, sinking shares
Image source: © Suriyaphoto | Megapixl.com

Highlights

  • Australian SaaS company ReadyTech Holdings Limited updates the market about its Government Licensing Project.
  • AU$8 million Project earn-out will not be paid to RDY as project has not been awarded to the company.

Australian SaaS company ReadyTech Holdings Limited (ASX:RDY) has updated the market about its Government Licensing Project. The shares of RDY open in red and closed flat following the ASX announcement.

What does the announcement say?

At the beginning of 2021, the company announced that Open Office had been shortlisted for Government Licensing Project. Now, ReadyTech has been advised that the contract is not awarded to the Open office and therefore, AU$8 million Project earn-out will not be paid.

In ReadyTech's understanding, the Government client has chosen an alternative option over its out-of-box configurable product.

The announcement informs the shareholders that ReadyTech did not include the Project in the gross opportunity pipeline; therefore, the FY26 revenue targets of FY22 guidance remains the same.

The management stated that the Government and Justice department of ReadyTech focuses on maintaining a strong pipeline and pursuing growth opportunities. Moreover, the department focuses on delivering innovative and scalable solutions to its clients.

Marc Washbourne, CEO and Co-founder of ReadyTech, commented on the announcement,

Bottom Line

The update regarding the Government Licensing project have impacted the shares of ReadyTech, and the management has ensured the shareholders that the company is looking for opportunities and is focused upon developing and innovating solutions for their clients.

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