A rise in foreign sales helped Halogen Software set a record for recurring revenue in the third quarter of 2014, the company announced late Thursday.
The company’s total revenue for the quarter was $14.4 million, up 17 per cent from the same quarter last year. That total was boosted by recurring revenue of $12.8 million, a 20 per cent increase from the third quarter of 2013.
“Our expansion efforts continue to generate strong early results,” CEO Paul Loucks said in a statement, noting that international revenue was up 71 per cent compared with last year.
Halogen products received a number of awards during the quarter, but Mr. Loucks said the company would continue to improve its offerings to customers.
“We are introducing and emphasizing new services and high-value content, which will help our customers build world-class workforces while supporting our objectives of increased dollar and customer retention,” he said.
Gross margin for the quarter was up $1 million, to $9.9 million, or 69 per cent of total revenue.
Halogen posted a net loss of $5 million in the quarter, higher than the $700,000 loss it reported for the same period last year. The company attributed the increase to its “higher headcount costs” and “significant growth investments.”
As of Sept. 30, Halogen had $46.8 million in cash and investments on hand, down from $55.9 million at the end of December.
Looking ahead, Halogen projects fourth-quarter revenues of between $14.7 million and $14.9 million with recurring revenue making up $13.4 million to $13.6 million of that amount.