Record-breaking recurring revenue for Halogen in 2015 Q2

In its first earnings report since Paul Loucks stepped down as chief executive last month, Ottawa-based Halogen Software said Thursday the company is pleased with its growth in total and recurring revenue.

At $16.1 million, total revenue was up 18 per cent compared with the second quarter of 2014. Recurring revenue was up 19 per cent to a record $14.6 million, or 91 per cent of total revenue for the three months ending June 30.

“Our performance demonstrates that we continue to deliver differentiated talent management solutions to our global customers,” interim CEO Leslie Rechan said in a statement. “I’m looking forward to working with the entire Halogen team to continue to build momentum and ensuring we have world-class capabilities in place to capitalize on our multibillion-dollar addressable market opportunity.”

The company said 79 per cent of its second-quarter revenue came from customers in the United States, 10 per cent from Canadian clients and 11 per cent from international customers.

The firm’s gross margin was unchanged from the second quarter of last year at 72 per cent.

Halogen (TSX: HGN) trimmed its net loss to $2.3 million for the quarter, compared with $2.6 million in the second quarter of 2014. It posted an adjusted net loss of seven cents per share in the quarter, compared with 11 cents per share for the same quarter last year.

As of June 30, the company had cash and investments of $40.4 million, down from $44.2 million on Dec. 31.

For the third quarter, the company is projecting total revenue of between $16.4 million and $16.6 million. Recurring revenue will make up between $14.8 and $15 million of that total.

Halogen is projecting total year-end revenues of between $65.4 and $66 million. Recurring revenue is projected between $59.3 million and $59.9 million.

Shares in Halogen were down three cents to $9.95 in late-day trading in Toronto.