Ottawa-based Halogen Software is making “incremental progress” but there is still plenty of room for improvement, new CEO Les Rechan said late Thursday.
“We still have opportunities to increase our level of execution, productivity and growth,” Mr. Rechan said in a statement at the end of his first official day as president and CEO. “I am confident in our future success given our best-in-class portfolio of solutions and strong track record of delivering value to our customers.”
Mr. Rechan’s comments came as the talent management solutions provider announced its total revenue rise to a record $16.6 million in the third quarter, a 15 per cent jump from the same period last year.
At $14.9 million, recurring revenue made up 90 per cent of Halogen’s total revenue. That figure was up 17 per cent from the third quarter of 2014.
Halogen’s gross margin in the third quarter was $12.2 million, or 74 per cent of total revenue, compared with $9.9 million, or 69 per cent, in the same quarter last year.
The company trimmed its net loss to $3.8 million this quarter compared with $5 million a year ago. Adjusted EBITDA for the quarter was a loss of $600,000 or three cents per share, down from a loss of $2.6 million, or 12 cents per share, posted in the third quarter of 2014.
As of Sept. 30, Halogen (TSX: HGN) had cash and investments worth $39.7 million, down from $44.2 million at the end of last year.
“Our third-quarter results were in line with our expectations, and reflect continued solid demand for our differentiated talent management solutions that are ideal for mid-enterprise customers,” said Mr. Rechan, who was named interim CEO after former chief executive Paul Loucks resigned in July and permanently assumed the post on Thursday.
“There is a tremendous market opportunity for SaaS-based talent management solutions, and we will continue to adjust our go-to-market strategies and respective investments to capitalize on this largely untapped market.”
Looking ahead to the fourth quarter, Halogen is forecasting total revenue between $16.9 million and $17.1 million, with recurring revenue making up between $15.4 million and $15.6 million of that amount. Full-year total revenue is expected to be between $65.4 million and $65.6 million and year-end recurring revenue is forecast to be between $59.3 million and $59.5 million.